How to obtain Spanish citizenship: through investment in real estate, naturalisation and more

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A state with a population of 48 million people offers a clear algorithm for those who want to understand how to obtain Spanish citizenship. The Law on Foreigners (LOEX) has systematised all channels – from naturalisation to investment. The period of residence, the amount of capital, the legality of the source of income, the level of integration – each criterion affects the result. Practice shows: the key to the passport is hidden in the details.

Property investments: capital works for status

Citizenship is not granted directly for the purchase of assets. The golden visa mechanism opens a direct path to residence permit and then to permanent residence and naturalisation. Since 2013, the investor admission programme offers a simplified procedure if the applicant has purchased a home for €500,000 or more without loans. This amount is sufficient for an apartment in Alicante, a townhouse in Malaga or a penthouse in Valencia.

The path includes:

the purchase of the property;
processing the application through a consulate or in-country;
processing of an investor visa with the right to work;
renewal of the residence permit after two years;
applying for permanent residence in five years;
formalisation of citizenship status after 10 years.

Thus, how to obtain Spanish citizenship through property investment is a task with a predictable outcome and a clear payback period.

Naturalisation: the law through patience

The longest, but massive way. The law establishes 10 years of legal and continuous residence as a condition for obtaining citizenship. For natives of Latin America, Portugal and a number of countries, the period is reduced to 2 years, in case of marriage to a citizen of the country – to 1 year. Among all the options for obtaining Spanish citizenship, the path through naturalisation is used more often than others.

Key Terms:

Having a residence permit or long-term residence;
confirmation of integration;
passing language (DELE A2) and culture (CCSE) examinations;
renunciation of previous citizenship (unless otherwise provided for).

The procedure is governed by Articles 21 and 22 of the Civil Code. The Ministry of Justice processes up to 150,000 applications per year, with approval rates varying by region.

Marriage and descent: the shortest route

Not everyone knows how to obtain Spanish citizenship through marriage, but this channel is one of the fastest. A year of cohabitation with a citizen of the country in a registered marriage is enough. At the same time, it is required to live in Spain legally.

The right of descent applies – for children born to Spaniards or adopted under the age of 18. The law takes into account special cases – being in the country at the time of birth, if both parents are stateless.

How to obtain Spanish citizenship: ways

The variety of legal mechanisms allows you to choose an approach depending on your goals, time and budget. The system covers:

Naturalisation – if you have lived for 10 years or more with permanent residence.
Property investment – through residence permit, residence permit and subsequent filing.
Conclusion of marriage – with confirmed cohabitation.
Birth or adoption – if there is direct descent.
Study or work – after the extension of the temporary residence permit.
Refugee – with asylum and integration conditions.
Citizenship by descent – if you have Spanish ancestors.

Each of these paths demonstrates how to obtain Spanish citizenship based on legal rules and life circumstances.

Documents and requirements

Migration authorities have specific document requirements for Spanish citizenship. A typical package includes:

proof of legal residence;
NIE – foreigner’s identification number;
examination certificate;
a criminal record certificate from Spain and the country of origin;
a certificate of income or tax return;
health insurance;
completed application form and fees paid.

The system supports electronic feeding via the Mercurio platform, which halves the processing time. Correctly completed documents for Spanish citizenship shorten the path to the final decision by 4-6 months.

Causes of failures

The Department of Justice strictly monitors background violations. Statistics show that denial of Spanish citizenship status is most often explained by:

incomplete or inaccurate documentation;
lack of legal income;
long trips out of the country;
by refusing to take the exam;
a criminal record or an administrative record.

Judicial practice demonstrates: in 70% of cases appeals after refusal remain unsuccessful. Mistakes in the CV are worth several years of waiting.

Peculiarities of the dual status of a citizen

Dual citizenship in Spain is only available for a limited number of countries. Latin America, Portugal, Andorra, Philippines – citizens of these countries retain both passports. For the rest, a renunciation of the previous citizenship is required.

Spanish law strictly controls the retention of a second passport without notification. Attempts to conceal the fact will result in the cancellation of naturalisation. It is therefore important to prioritise and understand the consequences of your choice.

Examinations: the key to recognition

The state requires mandatory language (DELE A2) and culture (CCSE) tests. The Instituto Cervantes certifies the results. The national average pass rate is 92%. The exam lasts 45 minutes and includes knowledge of the Constitution, history, way of life, geography, symbols and rights.

Candidates who have studied the tests in advance pass the threshold in 95% of cases. Preparation takes 2-3 months. Without passing the exam, it is impossible to explain how to obtain Spanish citizenship even with all other conditions fulfilled.

Residence, residence, residence permit and permanent residence: the basis for a future passport

The path to Spanish citizenship always starts with legal residence. The first step is a temporary residence permit, valid for up to 1 year, with the possibility of extension. After 5 years – a permanent residence permit, which gives full rights, except for electoral rights. The residence permit status opens a direct path to applying for a passport.

Residence requires physical presence and active participation in the social and fiscal life of the country. Successful adaptation and a stable income are mandatory parameters. In 2023, the minimum subsistence level was €600 per month per person, equivalent to an annual income of €7,200 or more. This data is used to assess financial solvency.

Everyone who realises how to obtain Spanish citizenship should consider the residence permit and residence permit not as a formality, but as a foundation.

Law and practice: what influences the decision

Formally, the law defines the process, but administrative practice clarifies the details. For example, the legislation does not specify that long journeys abroad are an obstacle. However, if the migration services record absence of more than 90 days per year without a valid reason – the application is rejected.

The law “on citizenship through naturalisation” does not set out a specific list of proof of integration, but in practice it is required:

language skills;
social engagement;
the existence of a labour contract;
participation in the tax system;
absence of offences.

Therefore, you should not limit yourself to the formal fulfilment of conditions. To understand exactly how to obtain a Spanish passport, it is necessary to take into account both the letter of the law and real cases.

How to obtain Spanish citizenship: conclusions

The path is built sequentially: residency, residence, integration, exams, filing. When choosing how to obtain Spanish citizenship, it is important to consider each stage. Investment, marriage, origin accelerate the process, but do not replace preparation. Civil status is formalised only with a clear strategy.

Property taxes in Spain in 2025: what is important for investors to know

Spain remains a leader in attracting foreign property investment in 2025 due to its warm climate, developed infrastructure and sustainable economy. Tax legislation continues to play a key role in ensuring transparent transactions and favourable investments. Property taxes in Spain affect every stage: from purchase to sale. Competent management of rates allows you to minimise costs, optimise returns and avoid financial risks.

Main types of property taxes in Spain

The main reasons for the popularity of Spanish real estate – favourable tax rates, support for foreign investors at the state level and growing demand in tourist centres. Cities such as Barcelona, Málaga and Alicante offer unique conditions for investing in housing for both personal use and rent.

Property purchase tax in Spain: rates and peculiarities

The Kingdom sets commissions on each sale and purchase transaction – the percentages depend on the type of property, region and its purpose. In 2025, the property transfer tax (ITP) remains mandatory for the secondary market, with rates ranging from 6% to 11%:

Madrid and Catalonia: 10% as standard.
Andalusia: reduced rate of 8% for properties up to €400,000.
Valencia: range 6-10% depending on the purpose of the property.

Value Added Tax (IVA) is levied on primary residences. Its standard rate is 10 per cent and 21 per cent for luxury properties over €1 million. In addition, stamp duty (AJD) is paid – 1-2% of the transaction amount.

Calculation example

When buying a flat in Valencia for 300,000 euros:

VAT (IVA): €30,000.
Stamp Duty (AJD): EUR 4,500 (1.5 per cent).
Final Costs: 34,500 euros.

Buyers must also take into account notary and registration fees, which average 1-2% of the object’s price. As a result, the tax burden on the future owner may amount to up to 15% of the total value of the property.

Property tax: what is important for homeowners to know

Annual property tax (IBI) is payable by owners of residential and commercial property in Spain, including non-residents. Rates vary from 0.4% to 1.1% depending on the region, type of property and its cadastral value.

Examples of rates by region:

Madrid: 0,5%.
Barcelona: 0.8%.
Malaga: 0.7%.

A flat in Alicante with a cadastral value of €200,000 is subject to a levy at a rate of 0.8%. The total annual fee will be 1600.

For commercial properties, the rate reaches 1.1 per cent, which increases the tax burden on owners. Municipalities regulate the percentages annually, which requires property owners to regularly monitor changes.

How are taxes calculated in Spain on the sale of property? Obligations for residents and non-residents

The sale of flats and houses on the peninsula is subject to capital gains tax (CGT). The rate is progressive for residents:

19% on increments up to €50,000.
21% – from EUR 50 001 to EUR 200 000.
23% – over €200,000.

Non-residents pay a flat fee of 24% of all capital gains.

Benefits and tax deductions for foreign investors

Spain provides a wide range of tax benefits for foreigners, which makes property investment even more attractive. One of the key advantages is exemption from double taxation. Thanks to agreements signed with more than 80 countries, foreign investors can avoid paying similar fees both in the Spanish state and at home. This is particularly relevant for non-residents who receive income from renting or selling properties.

Long-term rentals are also accompanied by tax deductions. Owners have the opportunity to reduce the taxable base by 60%, which significantly reduces the financial burden. For example, for the owner of a flat in Barcelona, which is rented out for 1,200 euros per month, the liability can be reduced by several hundred euros per year.

Investors who reinvest the proceeds from the sale of real estate in new housing in Spain have an additional tax benefit. In such cases, the owners are exempt from capital gains tax (CGT), which allows them to save large amounts of money for further investment.

Golden Visa programme: how to reduce property taxes

“Golden Visa” provides investors with the opportunity to obtain a residence permit for the purchase of properties valued at 500,000 euros or more. This status simplifies tax obligations, including reduced rates, and also opens access to participation in reinvestment programmes. Property owners in tourist areas of Spain, such as Málaga or Costa Blanca, receive additional benefits in the form of a 25% reduction in annual property tax if the property is rented out.

For example, the purchase of a flat in Malaga, previously subject to a commission of 1200 euros, allows you to reduce the payment to 900 euros, if you comply with all the conditions of the programme. Such measures encourage foreigners and promote interest in the Spanish property market, providing advantages for long-term financial planning.

How to manage tax expenditure efficiently?

Effective management of tax liabilities is an integral part of any investment strategy. Utilising tax incentives, proper asset allocation and timely payment of all compulsory levies can not only reduce costs, but also avoid penalties.

Understanding what property taxes apply in Spain helps residents and non-residents to minimise risks and maximise returns. Consultation with professional lawyers and tax advisors ensures that all obligations are fully controlled.

Investing in properties on the peninsula in 2025 continues to attract attention due to the stable economy in the country, developed infrastructure and favourable tax conditions. Commission management is not just an obligation for investors, but an opportunity to maximise returns and successfully realise financial goals.

June 12, 2025

Life by the sea: how to move to Spain for permanent residence

Sunny Spain with its cosy coastlines, temperamental culture and high quality of life is ideal for relocation. The opportunity to live by the sea and enjoy the mild climate attracts thousands of people every year. But realising this dream is not easy: you need to understand the legal nuances, research the cost of living and choose the best way to relocate. To understand how to move to Spain for permanent residence, it is important to prepare a clear plan, take into account all aspects and comply with the legal requirements of the country.

Moving to Spain: how to choose the best way to move to Spain

It is important to choose the appropriate way to obtain residency status. The government offers several legalisation options, each with its own advantages and limitations. The answer to the question of how to move to Spain for permanent residence depends on the applicant’s goals, income level and life circumstances.

The main ways of obtaining a residence permit:

Work visa. This option is suitable for those who have received an offer of employment from a Spanish company. It is important that the employer makes the appropriate application to the migration authorities. It is also possible to travel independently through starting a business.
Investment visa (golden visa). Investment in the Spanish economy entitles you to a residence permit. The minimum investment amount is 500,000 euros, e.g. in the purchase of property.
Family reunification. If relatives are already legally residing in the country, it is possible to apply for reunification. This requires proof of financial independence and availability of accommodation.
Study residence permit. Students receive a temporary residence permit for the period of their studies. This status allows you to work up to 20 hours per week, and after completing your studies you can apply for a work visa.
Retirement IOU. Pensioners with sufficient means of living and health insurance can also obtain a residence permit.

How to get a residence permit in Spain: steps and documents

Obtaining permanent residence is the final stage, which requires fulfilment of several mandatory conditions. In order to understand how to move to Spain for permanent residence, it is necessary to take into account that the process takes at least five years and involves the fulfilment of a number of formalities:

Residence in Spain for at least five years. During this period, it is necessary to maintain residency status and comply with migration regulations.
Document preparation. The list includes income certificates, tax returns, health insurance and proof of stable financial situation.
Language proficiency. A B2 or higher Spanish language proficiency certificate is required for application.
Integration. Demonstrating social engagement, participation in local activities and knowledge of the country’s culture will help to get a favourable decision.

The application is accompanied by a thorough review of all documents submitted. After successful completion of the stages, the applicant is given the opportunity to reside legally on the peninsula on a permanent basis.

Cost of living in Spain: what to consider when moving to Spain

Financial preparation plays an important role in the relocation process:

Housing. Renting a flat in the centre of Barcelona or Madrid will cost an average of 1000-1500 euros per month. More affordable options can be found in Valencia (700-900 euros). Buying real estate is also popular among those moving: the average price per square metre in the capital is about 4000 euros.
Nutrition. Products in Spain are relatively inexpensive. The cost of a set of meat, vegetables, bread and milk is about 120-150 euros per person. Outside the house, prices are much higher: lunch in a restaurant costs 15-30 euros.
Transport. Metro and bus fares cost 1.5-2 euros. For motorists, petrol costs approximately €1.5 per litre, and parking in city centres reaches €2 per hour.
Health care. Public clinics provide services on the basis of insurance, the payment for which depends on income. Private policies cost between 50 and 150 euros per month and offer a wider range of services.

Taxes in Spain: what is important to know before you move to live in Spain

The state’s financial system is based on progressive taxation, which applies to both local residents and foreign nationals living in the country for more than 183 days a year. For those planning to move to Spain for permanent residence, it is important to understand the structure of taxes, their rates and ways to optimise expenses.

Personal income tax

The IRPF rate ranges from 19% to 47% depending on the level of earnings. For example:

Income up to €12,450 is taxed at a rate of 19%.
Income between 20,200-35,200 euros – 30 per cent.
For high incomes over €60,000, the rate reaches 47 per cent.

Foreigners with an investment visa or temporary residence permit who do not spend more than six months on the peninsula can benefit from non-resident tax status and pay a flat rate of 24%.

Property tax

Homeowners pay an annual IBI (Impuesto sobre Bienes Inmuebles) tax. Its rate is 0.4-1.1% of the cadastral value of the property. For landlords, there is an additional commission on rental income.

VAT and capital taxes

Spain applies a standard VAT of 21%, with reduced rates (10% and 4%) for certain goods and services. Capital gains tax (IRNR) is levied on the sale of real estate and ranges from 19% to 23%.

The best regions in Spain: where to move for permanent residence

The choice of where to live plays a key role in adaptation and quality of life. The country offers a variety of locations, each with its own characteristics, climatic conditions and costs:

Barcelona. A cosmopolitan metropolis with developed infrastructure, international schools and many cultural events. The average cost of renting a home is 1200-1500 euros, and buying a flat will cost around 4000 euros per square metre. Barcelona is suitable for those who appreciate the urban rhythm of life and proximity to the sea.
Madrid. The capital of Spain is the business and cultural centre of the country. The best universities and offices of the largest companies are located here. The average rent is 1000-1400 euros per month. Madrid is chosen by those looking for career opportunities and a high level of comfort.
Valencia. A city on the Mediterranean coast with more affordable prices. Renting a flat costs 700-900 euros, and property prices are lower than in Barcelona or Madrid. Valencia attracts with its warm climate, developed infrastructure and moderate rhythm of life.
Andalucía. A southern region with a mild climate, historical sites and affordable housing. Seville and Malaga are popular destinations for those who appreciate traditional Spanish culture and low costs.

The challenges of moving: what to consider

To understand how to move to Spain for permanent residence, it is important to consider the following aspects:

Spanish bureaucracy is known for its slowness. It can take several months to apply for a visa, residence permit or permanent residence permit. Planning and utilising the services of immigration specialists can help to shorten the timeframe.
Knowledge of Spanish plays a key role in integration. In big cities you can find an English-speaking community, but in smaller communities it will be difficult without this skill.
High housing costs and taxes can be a barrier for many. Financial planning and searching for more affordable regions can help optimise costs.
Moving to another country is accompanied by the need to adapt to the local culture and way of life. The Spanish value family values, siesta and a relaxed attitude to work, which may surprise new residents.

Results

How to move to Spain for permanent residence? It is necessary to choose the best way to obtain a residence permit, prepare documents, calculate the budget and decide on the region. The country offers a lot of opportunities for a quality life, but success depends on careful preparation and adaptation to local conditions.

June 11, 2025