Why investing in Madrid without a Golden Visa remains attractive
Donald Trump's recent announcement of the "Golden Card" in the United States, with a minimum investment of $5 million, has sparked interest among large international fortunes.
However, for those seeking a profitable and secure investment in Europe, investing in Madrid - even without a Golden Visa - remains a superior alternative.
Let us remember that, at the beginning of the year, the Spanish Government put an end to the “golden visa”, through a legal reform that set April 3 as the deadline for any procedure.
Tax advantages that surpass those of the U.S.
While the US Golden Card requires transferring tax residency to the United States—meaning taxation on all worldwide income—Madrid offers much more attractive conditions. Key benefits include:
- Beckham Law: allows you to pay taxes only on income generated in Spain with a fixed rate of 24% up to €600.000.
- Mbappé LawIt offers a 20% deduction in Madrid's personal income tax for those who invest in companies for at least five years.
These advantages make investing in Madrid without a Golden Visa still fiscally strategic.
Lower entry costs and a solid market
Unlike the $5 million required in the US, and with the Golden Visa off the map, residence visa options in Spain are not subject to an investment.
In the case of the entrepreneur visa, which does require a financial contribution, there is no minimum amount, although it is usually between €150.000 and €200.000 in fixed assets. This broadens the chances of eligibility.
Furthermore, the Madrid real estate market remains strong, with a high demand from tourists and expatriatescompetitive prices and good profitability.
Added to this is a superior quality of life, a lower cost of living compared to the US, free public healthcare and regulatory stability thanks to membership in the European Union.
According to the 2024 version of the survey “European Investor Intentions SurveyAccording to a report by the commercial real estate investment and services company CBRE, Spain ranks fourth among the 10 most attractive European countries for investors, after the United Kingdom, Germany and Poland.
Growing interest from Chilean investors
In general, there is significant interest from investors and domestic companies in diversifying their portfolios into other markets. For example, as noted by the Mexican media outlet... The EconomistThe fact is that Chilean pension funds (AFPs) invest the most abroad in Latin America: 45.29%, compared to Colombia (44.29%) and Peru (39.78%).
In the case of real estate investment, in 2019, 80% remained in Chile, while 20% went abroad. Over the following years, this trend reversed, with 80% focused on foreign markets, reaching over US$10 billion by 2022.
In turn, the interest of the Chileans The Spanish real estate market, especially in Madrid, has grown considerably in the last 5 years. The reasons are clear: diversification of assets, access to the European market, and improved living conditions.
Nor can we ignore the fact that during 2023 the European Union updated its Trade Agreement with Chile, which undoubtedly brings advantages for any local investor interested in the Iberian country.
AIM Global: expert advice for investing in Europe
In an environment of regulatory changes and new immigration policies, having professional advice is key.
AIM Global offers top-level legal advice for those who wish to invest in Madrid without a Golden Visa or establish their residence in Europe safely and efficiently.
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