How to Get a Second Residency and Citizenship in Spain

Golden beaches. Happening nightlife. Excellent food from around the world and Spanish tapas everywhere you turn. 

It’s no mystery why so many people target second residency and citizenship in Spain. 

Since the global recession in 2008, Spain’s economic decisions have had significant impacts, especially in the form of high unemployment and dirt-cheap real estate in some parts of the country. 

At its peak, more than half of Spain’s youth were unable to find a job. Thankfully, things have improved in recent years, and Spain’s unemployment rate has fallen to a 15-year low of just over 11%.

The improved economic outlook in Spain is attributable to several factors, including the introduction of its own residency-by-investment program in 2013. 

What became known as the Spanish Golden Visa program made obtaining a second residency in Spain relatively easy. However, this popular program looks as though it may come to an end in January 2025 – more about that later.

Just because getting a second residency in Spain is easy doesn’t mean it is the best option for everybody. 

As a high-tax country, Spain isn’t exactly the best place to plant your flag in Europe. For most people, your entire worldwide income will be subject to tax in Spain. 

There are some legal ways to minimise the amount of tax you pay here if you have a business or investments around the world, but you can’t expect to live here and pay no tax at all. 

Does that mean getting a second residency and even citizenship in Spain is a bad idea? Not at all. 

As mentioned, there are several great Spanish visa options that will allow you to enjoy all the perks of EU residence while still affording you some room to optimise your taxes.

With that in mind, however, it is important to note that European residency programs, especially golden visa options, are changing and disappearing fast. 

Spain has decided to discontinue its golden visa program soon, so we urge you to get in on one of the best European residency options while it is still available.

Apply to become a Nomad Capitalist client, and we will help you make the most of current opportunities that may not be here soon. 

How to Get a Second Residency in Spain

Obtaining a second residency in Spain offers numerous advantages, including the right to live anywhere you wish in the popular Mediterranean country and the ability to travel freely within the Schengen Area. 

Residency in Spain means that you can stay longer than 90 days at a time and enjoy the benefits of the local lifestyle, healthcare and education system. It also opens up opportunities for business investments.

How do you get residency in Spain, though? There are a few popular visa options to explore. We will explain each route in-depth below, but here’s a quick overview of each.

• Digital Nomad Visa: Launched in 2023, this visa allows non-EU citizens to work remotely as long as they can prove they earn at least €2,666 per month and have a contract with an established company.
  
• Non-Lucrative Visa: This is ideal for retirees or those who wish to live in Spain without engaging in professional activities. It requires proof of sufficient financial means to support yourself without working in Spain.
  
• Golden Visa: By making a significant investment in Spanish real estate, economic interests or job creation, this visa provides a pathway to residency for you and your family. As mentioned above, there are plans in place to end this option.
  
• Entrepreneur Visa: While difficult to get, this option is designed for those planning to start a business in Spain that is deemed ‘innovative’ and beneficial to the Spanish economy.

Each visa type has specific requirements and benefits, so it’s important to review them carefully to determine which best suits your needs for obtaining a second residency in Spain.

That’s because obtaining a second residency in Spain generally comes with the presumption that you will spend six months a year in the country. 

How convenient for the government, then, that the minimum time to keep your visa active matches the amount of time required for them to tax your global income. 

If you’re a perpetual traveller practising flag theory, a Spanish visa allows you to theoretically spend as much time as you want in the rest of Europe’s Schengen Area, meaning you don’t really have to live in Spain. 

Regardless, we suggest an in-depth review of each Spanish residency route before making any decisions.

Spanish Digital Nomad Visa

Spain’s digital nomad visa, introduced in 2023, offers non-EU citizens the opportunity to live and work remotely in Spain. 

To qualify, applicants must demonstrate a minimum income of €2,666 per month and have a contract with an established company. Other requirements include:

• Demonstrating at least three years of experience in their field
• Submitting clean criminal record checks in every country where the applicant has resided in the last two years
• Confirmation of future registration in the Spanish social security and public health system.

This visa is designed for those who wish to explore the Spanish lifestyle while continuing their professional commitments abroad. 

If you apply within Spain, the visa and subsequent residency is granted for three years; if you apply at your local consulate, it will only be granted for one.

To apply, you will need a Número de Identificación de Extranjero (NIE) and a digital certificate. These are necessary to complete the application online.

Spanish Non-Lucrative Visa

Spain’s non-lucrative visa is a popular choice for those who wish to reside in Spain without engaging in any professional or commercial activities. It’s particularly appealing to retirees or individuals with independent financial means.

To qualify, applicants must demonstrate they have sufficient financial resources to support themselves, typically requiring a bank balance equivalent to 400% of Spain’s Public Multiple Effects Income Indicator (IPREM). 

Currently, that amounts to at least €36,000 per year, which must be available in your bank account when you apply.

This visa generally allows you to stay in Spain for one year, with the possibility of renewal for up to two years at a time. To renew, you must continue to meet the financial requirements. 

While the non-lucrative visa doesn’t allow you to work, it provides an excellent opportunity for those seeking a peaceful, sun-soaked retirement. Furthermore, it offers a pathway to permanent residency after five years and potential citizenship after ten.

Spanish Golden Visa

While the visa is soon to be discontinued (with the government eyeing January 2025 as the final date), the Spanish Golden Visa offers a number of benefits.

You don’t need to live in Spain to get your residency card, which would allow you to bypass tax residency. However, if you do choose to take this strategy, you will not qualify for citizenship. 

To qualify for a Spanish golden visa, you can either:

• Invest in real estate 
• Buy shares or deposit in a bank account 
• Invest in a business and create employment.

The real estate option is the cheapest option at just €500,000, while the investment minimums for financial assets are set to €1 million. 

While much more expensive than other second residency options on this list, the Spanish golden visa is quite quick to process, with visas granted in as quickly as 20 days. 

The entire Spanish Golden Visa program, not just the real estate option, may be discontinued in January 2025, so do your research but don’t delay making a final decision if this is the visa for you.

Spanish Entrepreneur Visa

This visa is pretty straightforward: you agree to start a company in Spain, and in exchange, you will get a residency-style visa. 

There are three main criteria for the business, including: 

• Creates economic interest in Spain
• Creates investment opportunities 
• Must be an innovative startup.

Spain isn’t exactly known as a tax haven, but there are a few incentives to encourage people to start companies here. 

While we doubt this tax reduction is the reason for Barcelona’s vibrant startup scene or Madrid’s bustling tech sector, new Spanish companies enjoy a tax rate of only 15% for the first two years in business. After that, rates will be 25%, with various other caveats. 

The real hit is the salary tax you take as an international director of your company. The personal income tax rate is 45% for salaries between €60,000 and €300,000 and 47% for salaries exceeding €300,000.

That said, the cost to set up a Spanish company and obtain residency isn’t outrageous, and if you can pull it off, then the tax implications might not be that big of a deal.

What about Spanish Permanent Residency?

After the first five years of residency in Spain, you can switch from any Spanish residency visa to permanent residency once you meet the specific requirements.

Tax Implications of Spanish Residency

If you’re a US person used to paying 37% income tax, Spain’s 47% income tax won’t feel much different as you enjoy another plate of tapas and Spanish wine overlooking the beach. 

If you’re aspiring to pay little or no tax as a global citizen, living in Spain under this residency is not a suitable option. 

However, if you have already accumulated a fortune and can live off of savings, getting a second residency would be less of a burden, although there is still a long list of filing requirements (including Spain’s version of the FBAR) and its significant wealth tax. 

Again, if you just want to live in Spain year-round, there are likely better European visas you can obtain. That said, Spain does offer an equal footing for non-westerners to come here, so long as they can meet the relatively minimal funds requirements. 

Of course, if you hold a Western passport, you already enjoy the right to spend up to 90 days in Spain each year as a tourist, with no income tax obligation and even the ability to reclaim any VAT you pay on retail purchases.

The Benefits of Spanish Residency

Is Spanish residency right for you? Here are a few of the biggest benefits of obtaining a second residency in Spain:

• Mediterranean Lifestyle: Embrace the lively Spanish way of living, which includes a rich (and strong) culture, delicious cuisine and a warm, welcoming community.
  
• Schengen Travel: With Spanish second residency, you gain the ability to move freely across the 29 Schengen countries.
  
• Educational Opportunities: Access a diverse range of educational institutions for all ages, from international schools to renowned universities. Even if you’re not still studying, Spanish business schools are a great place to source talent for your business.
  
• Thriving Business Environment: Benefit from Spain’s dynamic business climate, which offers numerous opportunities for entrepreneurs and investors, supported by a strategic location that serves as a gateway to Europe and beyond.
  
• Attractive Tax Benefits: Depending on your personal circumstances and tax planning, Spanish residency can offer favourable tax conditions, particularly for those taking advantage of treaties and incentives designed to attract foreign investment.

How to Get Spanish Citizenship

Spanish citizenship requires you to spend ten years in the country unless you are a natural-born citizen of the Philippines or any Latin American country, in which case the requirement is two years of residence. 

Bureaucracy is a big thing here. 

Obtaining Spanish citizenship generally requires fulfilling the residency requirement, regardless of investment level. Our contacts in the real estate sector indicate that this is unlikely to ever change. 

If you compare Spain to some of its neighbours, theoretically, you can get citizenship in Europe far faster than the ten-year Spanish timeframe. However, the trade-off would be how you spend those ten years.

Ten years spent truly enjoying Spanish culture and your life in Spain are ten years well spent. If you are just looking for second citizenship, however, and don’t care to live in the country, other quicker programs in the EU are available.

How to Obtain Dual Nationality in Spain

Gaining Spanish citizenship involves a structured process that typically requires applicants to first obtain a residence permit and fulfil a residency period ranging from one to ten years, depending on individual circumstances:

• Marriage to Spanish Citizen: You are eligible to apply for Spanish citizenship after one year of residency in Spain.

• Citizen of Former Spanish Colony: You are eligible to apply for Spanish citizenship after two years of residency in Spain.

• Standard Applicants: You must obtain a residency permit and keep it for ten years to be eligible to apply for Spanish citizenship.

Once eligible for citizenship, applicants generally must renounce their former nationality. 

This step involves formally relinquishing your past citizenship at the consulate or embassy of your home country, rendering your previous passport invalid.

For those considering dual nationality in Spain, it’s important to understand its implications. 

Dual citizenship allows individuals to maintain legal ties with both Spain and their original country, though they are primarily subject to the laws of the country where they reside. 

Some countries, particularly former Spanish colonies, offer reduced residency requirements, making the transition smoother for their citizens. 

Furthermore, Spanish citizenship provides significant benefits, especially for those from former Spanish colonies with somewhat weaker passports, such as the ability to live freely within the EU and pass nationality on to descendants.

How to Get Second Residency and Citizenship in Spain: FAQs

Is Second Residency or Citizenship in Spain Right for You?

Are you interested in a second residence in Europe? Not sure if Spain is for you? 

European residency options are changing and closing fast. 

In this ever-changing world, even the European ideals of openness are being tested.

That’s why we urge you to get in touch with the Nomad Capitalist team. 

The opportunities that exist now may not exist tomorrow, so now is the time to get things rolling.

Thankfully, there are still plenty of residence and citizenship options to explore across Europe. 

Contact the Nomad Capitalist team today, and we’ll help create a holistic strategy tailored to your specific needs, helping you take advantage of the best second residence and citizenship options still available.

Contact the Nomad Capitalist team today, and we will work as the architects and general contractors, helping you create a holistic strategy tailored to your specific needs, helping you take advantage of the best second residence and citizenship options.