How Spain differs from Portugal for investors.

Choosing between Spain and Portugal for investment can be a complex task for potential investors. Both countries offer attractive residence permit (residence permit) programs through investment, but they have their own characteristics and differences.

Residence by Investment Programs

Spain

Spain has been offering a "Golden Visa" since 2013 under Law 14/2013. The main investment options include:

• Purchase of real estate from 500,000 euros.
• Investment in government bonds from 2,000,000 euros.
• Deposits in local banks from 1,000,000 euros.
• Purchase of shares of Spanish companies from 1,000,000 euros.

A residence permit is issued to investors over 18 years of age without a criminal record, with legal income and health insurance. The program allows you to include family members in the application.

Portugal

Portugal also offers a "Golden Visa" with various investment options:

• Investment in funds from 500,000 euros.
• Creation of a business with investments from 500,000 euros and the creation of at least 5 jobs.
• Donations to cultural heritage funds from 200,000 euros.

To obtain a residence permit, it is necessary to spend a minimum time in the country: 7 days in the first year and 14 days in the following two years. After 5 years, you can apply for citizenship.

Tax Systems

Spain

• Personal Income Tax (Impuesto sobre la Renta de las Personas Físicas): 19-47%.
• Corporate tax: 25% with possible tax benefits.
• Capital Gains Tax: 19-23%.
• Inheritance and Gift Tax: up to 34% in some regions.
• Property Tax: 0.4%-1.1%.

Portugal

• Personal Income Tax: 13.25%-48%.
• Corporate tax: 21% on the mainland, 20% in Madeira, 16.8% in the Azores.
• Capital Gains Tax: 28% on the sale of Portuguese assets.
• No inheritance and gift tax for direct relatives.

Since 2024, the Non-Habitual Resident (NHR) program has been abolished, and all residents are required to pay taxes on their worldwide income.

Real Estate Market

Spain

Property price growth is around 7.5% until June 2024. The average cost of 1 m² in Madrid and Barcelona varies from 3,300 to 5,700 euros. Popular areas for investment include Barcelona, Madrid, Valencia and Malaga.

Portugal

Property prices in Portugal have increased by 30% from 2018 to 2023. In Lisbon, the average cost of 1 m² is 5,642 euros, and in the country - 2,683 euros. Popular regions: Lisbon, Cascais, Algarve.

Medicine and Education

Spain

• High quality of public medical services.
• Private insurance costs 100-200 euros per month.
• Education is free for children from 6 to 16 years old, 86 universities.

Portugal

• Ranks 13th in Europe in terms of healthcare.
• Private insurance costs 400-1,000 euros per year.
• Education is free for children from 6 to 18 years old, 100 universities.

Security and Social Conditions

Spain

Generally a safe country, but there are areas with increased crime, especially in the southern regions. August often leads to an increase in thefts due to mass vacations.

Portugal

Very safe country with low crime rates and fewer problems with immigrants compared to Spain.

Conclusion

The choice between Spain and Portugal depends on your investment goals and personal preferences. Spain offers a more developed economy and real estate market, but has higher taxes and potential security problems in some areas. Portugal attracts with low taxes, a stable and safe environment, but has a less developed economy compared to Spain.

It is recommended to carefully analyze the tax systems, conditions for obtaining a residence permit, the real estate market and personal preferences for climate and quality of life before making a decision.