What are the Tax Benefits of a Spanish Golden Visa?

The Spanish Golden Visa, or Residence by Investment Program, offers several potential tax benefits, especially considering the unique taxation rules applied to Spanish residents and non-residents. Here’s a closer look:

1. No Tax Residency Obligation: Golden Visa holders are not required to become tax residents unless they live in Spain for more than 183 days in a calendar year. This means you can hold the Golden Visa, enjoy its benefits, and still be taxed as a non-resident — paying tax only on your income and wealth in Spain, not worldwide.
2. Potential for Tax Planning: If you do choose to become a tax resident, Spain’s wealth and inheritance tax laws vary considerably between its autonomous regions. Some regions offer substantial reductions, providing opportunities for effective tax planning.
3. No Wealth Tax on the Investment: The amount invested to obtain the Golden Visa (such as €500,000 in real estate) is not subject to Spain’s annual wealth tax.
4. Double Taxation Treaties: Spain has double tax treaties with many countries, including the UK. These treaties help prevent double taxation, determining where you pay tax on certain types of income.

Remember, tax laws can be complex and their application may vary depending on individual circumstances. While the Golden Visa can offer attractive tax benefits, it’s critical to fully understand your tax obligations in Spain and your home country. Misunderstandings or mistakes can lead to unintended tax liabilities.

At Chorus Financial, we specialise in offering advice to British expats, helping you navigate the complexities of the Spanish tax landscape. If you need assistance evaluating the potential tax benefits of the Spanish Golden Visa or have any other financial planning questions, feel free to contact us.