The abolition of residence permits by investment, commonly referred to as Golden Visas, with effect from 3 April 2025 has significantly reshaped the Spanish migration framework. This regime, introduced in 2013, enabled nationals of non-EU jurisdictions to obtain residence in Spain on the basis of qualifying real estate, financial or corporate investments.
Going forward, long term lawful residence in Spain is predicated on demonstrating a substantive, and not merely formal, connection with the country. Such connection may derive from economic activity, professional engagement or stable personal and social ties. As a result, investors, internationally mobile families and foreign executives must now re-evaluate their relocation and contingency planning strategies in light of the new Spanish legal landscape.
Within this redesigned framework, some of the most relevant existing alternatives include: (a) the non-lucrative residence permit, (b) residence permits linked to entrepreneurial or business projects, (c) residence permits for highly qualified professionals, including the EU Blue Card, and (d) the residence permit for international teleworkers, often described as the “digital nomad” visa.
In a global environment where many States have tightened admission and residence rules, with the United States often cited as a clear example, Spain continues to be perceived as an attractive jurisdiction for those seeking to combine quality of life, legal certainty and access to European markets. However, the legal architecture governing entry and stay has undergone a substantial recalibration following the repeal of the residence by investment scheme. For more than ten years, that scheme enabled residence to be secured on the basis of capital investments in real estate, financial instruments or shareholdings, without the need to spend a minimum number of days in Spain and with streamlined processing requirements. Unsurprisingly, it became a widely used instrument both for contingency planning and as a rapid route to establishing effective residence in Spain.
The Spanish legislature has framed the reform as a response to two main concerns. First, the need to align with the positions expressed by EU institutions regarding the risks historically associated with so called “golden passport” and “golden visa” programmes, including exposure to money laundering and the difficulty of ensuring appropriate fiscal traceability. Second, the perceived impact of the Golden Visa scheme on the residential property market, particularly in cities and regions under strong demand pressure, where it is argued that investment driven demand contributed to rising prices and, indirectly, to constraints on the social right of access to housing.
The system that now emerges places greater emphasis on visas and residence permits that are anchored in a genuine, traceable and continuous presence in Spain, rather than in a passive capital contribution. With the removal of the most “investment only” avenues, it is no longer possible to obtain a residence permit in Spain on a purely instrumental or precautionary basis, detached from real economic or professional activity or from genuine personal relocation.
One of the most commonly used routes to reside in Spain, which remains in place, is the non-lucrative residence permit. This authorisation is intended for third-country nationals who have ceased their professional activity and who have sufficient stable income or assets. Holders of this permit may reside in Spain provided they do not carry out any professional or employment activity, either in Spain or abroad. Eligibility requires evidence of adequate financial means, documentary proof of assets and comprehensive health insurance. In practice, this option is particularly suitable for individuals and families who wish to retire in Spain or relocate for lifestyle reasons without engaging in remunerated work.
Entrepreneurs and investors, by contrast, must generally rely on residence permits that are directly linked to business activity. At present, there are two principal pathways: (a) the residence permit for innovative entrepreneurial business projects, and (b) the self-employment residence permit. Under option (a), applicants must demonstrate the feasibility of the business, its economic contribution in Spain, the potential for job creation and the innovative nature of the project. These elements must be endorsed through a favourable binding report issued by ENISA, the state-owned company that supports innovative business initiatives. This route benefits from accelerated processing compared to option (b), the self-employment residence, where the assessment periods are longer but there is no requirement that the business be innovative. Third-country nationals who wish to access the Spanish special tax regime for inpatriate workers or investors, widely known as the “Beckham regime”, will typically need to rely on one of these two residence options. Careful sequencing is therefore required between the application for the residence permit, the appointment as a director of a Spanish company and the physical relocation to Spain in order to preserve eligibility for this favourable regime.
Third-country nationals who intend to obtain a residence permit in connection with an employment relationship with a Spanish or foreign company have in practice two main options: (a) the intra-company transfer residence permit, and (b) the highly qualified professional residence permit, which includes the EU Blue Card. The intra-company transfer permit is generally appropriate where an employee of a non-Spanish entity is seconded to Spain while retaining the employment relationship with the original employer abroad. The highly qualified professional route, by contrast, is better suited to situations where the individual will enter into a new employment contract with a Spanish company. Once again, the timing and coordination of the residence application, the commencement of the employment or secondment and the effective relocation are decisive. They must be aligned in order to ensure that the conditions for the Spanish inpatriate tax regime for workers are met and that its benefits are not inadvertently lost.
Since 2023, a further route has been available for third-country nationals who wish to relocate to Spain while working remotely, through the international teleworker residence permit, commonly known as the digital nomad visa. Under this category, (a) employees must work for a non-Spanish employer for at least three months before applying and must meet certain qualification thresholds. They may, subject to conditions, benefit from the inpatriate tax regime. (b) Self-employed professionals must maintain a stable contractual relationship with a non-Spanish client or company and may provide services to Spanish entities only on a limited basis, not exceeding 20 per cent of their overall professional activity. They are expressly excluded from the Beckham regime. In both cases, applicants must demonstrate that they have social security coverage, suitable health insurance and that the foreign company operates lawfully. Work generating income from Spanish entities is heavily restricted. The regime offers a number of practical advantages, such as relatively swift processing, the possibility to apply while already in Spain, the option to include family members and the freedom to live and work from any location within Spanish territory.
Beyond the migration rules themselves, it is essential to analyse the tax consequences associated with becoming resident in Spain under each of these categories. Unlike the former Golden Visa, the current residence options require a meaningful physical presence in Spain. This will often result in the acquisition of Spanish tax residence. For Spanish tax purposes, tax residence is a question of fact, determined primarily by physical presence in Spain or, alternatively, by the location of the individual’s centre of vital or economic interests.
That said, holding a Spanish residence permit or visa is regarded by the Spanish tax authorities as a significant indicator that the individual may be tax resident in Spain. Accordingly, for individuals and families considering relocation, it is critical to plan the move and sequence the relevant steps before submitting a visa or residence application. This is particularly important for those intending to rely on the inpatriate tax regime or Beckham regime, given that its application depends on a precise coordination of the timing of relocation, the commencement of employment or business activity and the specific type of residence permit obtained. A carefully structured approach is essential in order to secure the intended tax treatment and avoid unforeseen tax exposures or disputes with the Spanish authorities.
