Live News From Spain As It Happens

Spain, with its alluring climate, extensive coastline, and world-renowned cuisine, remains a magnet for travellers worldwide. In 2024 alone, this vibrant country welcomed an unprecedented 94 million visitors. However, with this surge, Spain faces the challenges of managing overcrowding and mitigating the impact on local life. To address these concerns, Spain has introduced a series of new regulations for 2025. Here’s a comprehensive guide to navigating these changes while ensuring a seamless travel experience.

Entry Requirements: What You Need to Know

The procedures for entering Spain vary based on your country of origin, travel duration, and the purpose of your visit.

For citizens from the European Union, European Economic Area, or Schengen Area, the process remains straightforward. A valid national ID card or passport suffices, with no restrictions on the length of stay unless you plan to remain for over 90 days. In such cases, you must register with local authorities.

Non-EU travellers will encounter stricter border controls in 2025. Ensure your passport is valid for at least three months beyond your departure date. Additionally, you may need to show the following documents:

• Proof of travel insurance
• Return or onward travel ticket
• Sufficient funds for your stay
• Proof of accommodation or a 'carta de invitación' if residing with friends or family

Looking ahead, the European Travel Information and Authorisation System (ETIAS) will be implemented in mid-2025. This system requires a €7 travel authorisation, valid for three years, which can be obtained online.

Changes in Accommodation Regulations

Starting January 2025, Spain has revamped its rules for short-term rentals. Property owners must now register in a national database and obtain a permit before listing properties on platforms like Airbnb. Moreover, they are required to gather sensitive information from guests, including bank details and personal identifiers. There’s also a proposed VAT increase on short-term rentals, aligning it with the 10% applied to hotels, potentially driving up accommodation costs.

While these rules primarily target new rentals, existing hotels and registered Airbnbs remain available. However, limited new rental properties might lead to inflated prices in the future as demand continues to grow.

Restrictions on Airbnb Rentals

Airbnb rentals aren’t banned nationwide but are restricted in specific areas. For instance, in Malaga, new rental apartments are prohibited in 43 neighbourhoods where rentals already exceed 8% of the housing stock. Barcelona, taking a more stringent approach, plans to shut down all 10,000 currently licensed short-term rental apartments by 2028, refusing license renewals and new applications.

Tourist Taxes: What You Should Expect

Since 2012, certain regions in Spain have imposed tourist taxes, and these have seen significant hikes for 2025. Barcelona, in particular, has doubled its tourist tax rates. Luxury hotel guests will now pay €7 per night, while those staying in four-star hotels will be charged €3.40. Cruise passengers, even those visiting for a day, will face a €6 fee – a significant increase from previous rates. Additionally, Barcelona may double its municipal surcharge, leading to a possible total of €15 per night, excluding VAT, for luxury hotels.

The Balearic Islands, including Mallorca, Ibiza, and Menorca, have also raised their peak season tourist tax to €6 per night for the most luxurious stays. Similar measures are under consideration in the Canary Islands, with the town of Mogan already implementing a €0.15 per person daily charge.

Other cities like Santiago de Compostela and Toledo are introducing new tourist taxes ranging from €1 to €2.50 per night.

Addressing Unruly Behaviour with Fines

Spain has introduced various local regulations to curb tourist misbehaviour:

Alcohol Restrictions in Barcelona and the Balearics:

Barcelona has expanded its ban on pub crawls to include the Eixample district from June 2025, augmenting the restrictions already in place in the Ciutat Vella district. The Balearic Islands have imposed strict alcohol consumption limits in major resorts such as Llucmajor, Palma, Calvia (Magaluf), and San Antonio in Ibiza. Violations could result in fines from €750 to €3,000.

Driving Restrictions in Mallorca:

In efforts to preserve local communities, Soller on Mallorca has introduced a low emission zone encompassing 12 historic streets. Only vehicles registered to residents can access these areas. Tourists must park in designated zones on the outskirts.

Beach Rules in Torrox:

Torrox, located on the Costa del Sol, has banned beach tents, gazebos, and similar structures. This measure is aimed at improving safety and ensuring lifeguards and emergency services can operate without obstruction.

Smoking Bans:

Spain continues its stringent stance on smoking. Notable bans include smoking on Barcelona’s beaches and over 100 other beaches across the country. The Balearic Islands alone have introduced smoking restrictions on 28 beaches.

Preparing for a Successful Trip

Given these new rules and regulations, it is important to be well-prepared for your visit to Spain in 2025. Here are some tips and reminders to make your experience smooth and enjoyable:

• Documentation: Ensure you have all the necessary travel documents, including your passport, travel insurance, return tickets, and proof of accommodation.

• Accommodation: Book early to secure registered hotels or Airbnbs. Be aware of potential price increases due to new regulations.

• Budget: Factor in tourist taxes and possible fines for non-compliance with local rules.

• Stay Informed: Keep abreast of the latest travel advisories and local regulations.

While the new rules might seem daunting, they are designed to balance the influx of tourists with the wellbeing of local communities. By staying informed and respecting these regulations, you can have a memorable and trouble-free holiday in Spain. Safe travels!

As we step into 2025, Spain ushers in notable transformations within its tax landscape. These adjustments, spanning various sectors and affecting diverse demographic groups, stem from fiscal policies agreed upon during the recent sessions of the Congress of Deputies. With an overarching aim to bolster state revenues by approximately €4.5 billion annually, these changes illustrate the government's strategic move to ensure a robust economic framework. Amidst these changes, some tax relief measures, previously introduced to combat inflation, have now expired. As these developments take shape, a comprehensive understanding is essential for individuals and businesses alike.

Reverting to Standard Rates

A significant change that has captured public attention involves the reimplementation of standard tax rates on previously exempted goods. After many years of enjoying reduced VAT on basic necessities, Spaniards are now witnessing a return to the usual 4% VAT rate on essential food items, including the much-revered olive oil. Alongside this, the temporary reduction in electricity VAT has been rescinded, restoring the rate to its original 21%. These modifications, while boosting revenue, inevitably lead to a rise in household expenses for Spanish families.

These changes reflect a broader economic strategy designed to ensure a sustainable fiscal future as Spain gradually phases out measures implemented to cushion households from past inflationary pressures. Since 2020, public coffers have absorbed extensive cuts, amounting to €120 billion in tax breaks and subsidies. While their removal might indicate a controlled inflation environment, they simultaneously challenge lower-income families' financial stability.

Impact on the Corporate Sphere

Corporate entities, particularly large multinationals and banks, encounter significant revisions in their tax obligations. Marked by changes drafted to align with international benchmarks and outcomes agreed upon with Brussels, these reforms present a nuanced picture for businesses operating in Spain.

Corporate Tax Adjustments

For large businesses and multinationals with turnovers exceeding €750 million, 2025 heralds a minimum 15% corporate tax rate. This aligns with the global effort to ensure that large corporations contribute an equitable share, regardless of where they generate income. However, there is some respite for small and medium-sized enterprises (SMEs); was responded to calls for economic support through a reduction in their Corporate Tax liabilities. For SMEs, a relief package encompassing a €700 million reduction epitomises an essential gesture towards supporting business growth within this critical sector.

The Financial Sector's New Reality

Banks in Spain face a transformative fiscal landscape in 2025. A freshly introduced tax on the financial sector targets interest margins and fees, announced with a progressive tax scale ranging from 1% to 7%. The government estimates that this measure will cumulatively generate €1.7 billion annually over the next three years. The revenue procured under this tax will be distributed among the autonomous communities, corresponding to their GDP—an approach aimed at fostering fair distribution.

Moreover, the tax reform package introduced further considerations. If acquisition operations like BBVA's takeover of Sabadell proceed, additional tax burdens may arise, amplifying the financial sector’s contribution to the economy and the national treasury.

Addressing Fiscal Fraud and Modifying Tax Policies

Among the new measures, the government has committed to tightening regulations to combat fiscal fraud, particularly within the hydrocarbons sector. A revised hydrocarbons VAT aims to prevent manipulation and ensure transparency in operations related to major oil companies. Simultaneously, the modifications within Corporation Tax strive to limit past deductions, bringing Spain's effective tax rate closer to its statutory requirements.

Effects on Personal Income

Throughout these fiscal revisions, certain personal income categories come under scrutiny. Specifically, individuals receiving capital incomes exceeding €300,000 will face an increment in their Personal Income Tax by an additional two percentage points, setting the rate at 30%. Despite these changes, many Spaniards still bear the financial burden resulting from non-indexed tax brackets, which do not reflect inflationary movements.

A report from the Bank of Spain flagged this issue, noting that the absence of indexation has enabled the Tax Agency to collect an additional €11 billion in recent years. As inflation continues to affect household budgets, calls for adjustments persist.

Tobacco, Diesel, and Energy: A Changing Landscape

The beginning of 2025 marks increased taxation on tobacco and introduces a new tax on electronic cigarettes, part of the government’s broader vision to curb smoking across all age groups, especially among youth. This policy extends beyond revenue generation, reflecting a public health focus as the prevalence of tobacco consumption rises.

For motorists, potential changes loom with regards to the hydrocarbon tax on diesel. While current discount measures are slated for removal, political dynamics have temporarily delayed these adjustments. The proposal faces opposition from Podemos, thereby temporarily blocking its legislative passage despite Spanish commitment to Brussels to implement this change as a condition for receiving European funds.

A Record Year with Regional Disparities

As Spain concluded 2024 with revenue close to €300 billion, disparities among the regions regarding local and state taxes remain evident. Regions like Catalonia, previously leading in local taxes with minimal tax breaks, continue to hold significant contrasts compared to Madrid, recognised for its reduced tax burden. These differences highlight the asynchronous fiscal experiences faced by citizens across the country.

Despite achieving record revenue, Spain’s average tax pressure remains below the EU average, reported at 37% of GDP according to Eurostat’s latest figures. This analysis, which considers income levels and contributions after deductions, situates Spain below neighbouring countries like Portugal, Germany, and Italy, with France leading at 45.6%.

Concluding Thoughts

As Spain navigates these new fiscal waters, the array of changes encompasses a vision aimed at stabilising the economy, achieving equitable taxation, and ensuring aligned growth. While these taxes undeniably tighten some financial strain on individuals and businesses, especially amidst global economic uncertainties, they represent decisive movements to achieve balanced public finances. Ultimately, understanding and navigating these transformative changes will be essential for all stakeholders involved as they contribute to shaping Spain’s economic narrative this year and beyond.

SPAIN'S National Research Council (CSIC) has announced a new book series seeking to debunk widely-held myths through scientific answers – including whether bread really makes you put on weight.

The latest edition in the series ¿Qué sabemos de...? ('What do we know about...?') is titled Los bulos de la nutrición ('Hoaxes about nutrition'), co-authored by researcher Miguel Herrero.

One of the most-asked questions about diet, Herrero reveals, is which part of bread is the most fattening – the crumb or the crust.

“Given that it has less water in it, the flour parts – basically, carbohydrates – are more concentrated in the crust,” the scientist explains.

“For this reason, if you take the same weight of the crust and the crumb, it's the crust that contains more calories.”

Another common grey area about nutrition involves food items described as 'anti-oxidants', which are said to flush out unwanted substances known as 'free radicals' from the body, reducing the likelihood of illness through preventing premature cell ageing and fighting infection.

“There's not enough scientific evidence on the true rôle of anti-oxidants in diet, in terms of their illness prevention effects,” Herrero cautions.

This said, “there are some indirect signs that makes you think they could have a positive effect – although we don't know to what extent – and more and more studies are being carried out into how anti-oxidants in food are metabolised in humans. 

“These will help shed more light on the subject.”

But this hitherto lack of robust evidence is no reason to stop eating blueberries and drinking green tea - “food and drink containing anti-oxidants will not do you any harm,” Herrero clarifies.

“What's not really justified is that these salads, juices and smoothies marketed as 'anti-oxidant' are more expensive, based upon that claim alone – all the ingredients naturally contain anti-oxidants anyway.”

Herrero, additionally, addressed concerns about additives in food – those used to preserve them for longer, or alter their taste, scent and colour.

“Despite their bad press, these additives play a crucial part and they're safe for consumption,” Herrero assures.

“There are food groups like honey, oils, butter, or pasta, for which the use of additives is banned or legally limited, but there are others such as wine, and pre-cooked beans and pulses in tins, where additives are necessary.” 

The new book on 'dietary hoaxes' covers how to interpret the labels on food items, containing nutritional information – including the full list of ingredients, which has been obligatory in Spain by law since 2016.

Read more at thinkSPAIN.com

VARIOUS charities and organisations – local and national – have set up channels for members of the public to help those affected by the storms and flash floods in the province of Valencia.

As well as collecting funds, these organisms are seeking food, clothing, bottled water, and other essentials for residents mainly to the south and west of the city of Valencia.

The Red Cross (Cruz Roja) has set up a website for direct cash donations – https://cercadeti.cruzroja.es/ayudaafectadosinundacionesdana – which can also be made by emailing the charity at donativos@cruzroja.es, calling the toll-free number 900 10 49 71, sending a text message to 28092 with the word AYUDA ('help'), or a Bizum to the number 33512.

You may be asked for your Spanish national identity number – DNI for Spanish nationals, or NIE for foreign residents – but those who do not live in Spain can still donate to the Red Cross to help the flood victims.

They can make a bank transfer to the Red Cross account – ES44 0049 0001 5321 1002 2225.

The Red Cross says it is 'prioritising cash donations' at present, since its volunteers and salaried workers on the ground are best place to determine which services those affected need, given that these needs are constantly changing.

Church-based charity Cáritas, which had branches in almost every town in Spain and habitually operates food banks and poverty relief, is also collecting for flood survivors – the organisation says donations can be made via Bizum to 00089, by calling the freephone number 900 33 99 99, or via its dedicated website https://www.caritas.es/emergencias/graves-inundaciones/.

The Comunidad Valenciana regional government, via its treasury office and in partnership with Sabadell bank, has set up an account for donations, of which 100% will go directly to affected residents.

Transfers can be made to the IBAN number ES94 0081 0693 6100 0242 3445.

Banco Sabadell, where the account is based, has pledged to match donations euro for euro, in addition to promising a minimum of half a million euros on top of any funds accrued.

If you are based in the Comunidad Valenciana or in Madrid, your local council is likely to have set up collection points for you to provide tangible goods such as clothing, toiletries, non-perishable food, bottled water and, in many cases, food and other necessities for pets – both those belonging to flood victims, and those at animal shelters cut off by the rising rivers.

One of these collection points is at Valencia FC football stadium, the Mestalla arena on the Avenida de Suecia in the Pla del Real square.

The Madrid-region commuter town of Leganés has set up a collection point in the Local Police and Civil Protection headquarters on the C/ Chile, and has been transporting lorryloads to the affected areas of the province of Valencia.

Leganés town hall says it is collecting non-perishable food, bottled water, clothing and other personal essentials, blankets and towels, as well as buckets and spades to help with the mass clean-up operations.

Toledo (Castilla-La Mancha) to the south of Madrid has asked for similar essential items to be dropped off at a help point at number 4 of the C/ Talavera de la Reina.

Many towns in the Comunidad Valenciana have set up blood donor sessions to help those who have suffered serious injury and illness as a result of the flood.

Eligibility criteria for giving blood can be discussed with the organisers, but usually includes being in generally good physical health, weighing not less than 50 kilos (7st 12lb, or 110lb), being aged at least 18, and not being on certain types of medication.

Animal shelters need foster families, food and volunteers

Animal shelters are also calling for help – Modepran in Valencia's Campanar neighbourhood, on the C/ Nou de Paterna, is asking for 'urgent' foster parents for cats and dogs whose habitual accommodation has been washed away, as well as donations via its account at Banco Sabadell – ES94 2100 1716 8601 0050 3303 – and, for those able to travel to the centre in person, blankets, towels, leads and collars.

Read more at thinkSPAIN.com

INTEREST rates in the Eurozone could fall to 2.5% next year, having closed August 2024 on 3.75%, according to latest research.

The recently-released report by S&P Global Ratings predicts the lower Euribor rate will come off the back of increasing growth in economies that share the common currency, particularly in Spain and France.

For 2024 as a whole, the Eurozone's GDP is expected to have grown by 0.8%, rising to 1.3% in 2025, as consumer spending and investment increases.

Weaker growth is forecast for Germany this year, but Spain and France are likely to be the main economies driving the GDP upwards, S&P finds.

Whilst inflation remains above the European Central Bank's (BCE's) target of 2%, it has reduced significantly this year, ending August on 2.2%.

Also, consumer price index inflation fell from July's 2.8% to 2.4% last month – a dramatic year-on-year difference, given that July 2023 saw it reach 5.9%.

Analysts are now becoming quietly confident of a Euribor rate cut next year, and estimate that inflation could finally reach the 2% target.

The BCE, then under Mario Draghi, dropped Eurozone interest rates into negative figures for the first time ever in February 2016 in a bid to increase consumer spending, borrowing, and strengthening the economy.

Interest would remain below zero for over six years, as inflation continued at well below the 2% target.

Global inflation in 2022 led current BCE chair Christine Lagarde to increasing the Euribor at its fastest level in history – within 10 months, it had gone from minus figures to around 4%.

This month, the BCE plans to reduce the rate to 3.5% - only the second cut so far in 2024.

Read more at thinkSPAIN.com

ANYONE who has let out or sold their property in recent years will have gone through the process of obtaining an energy-efficiency certificate – and, if you're planning to sell yours or rent it, you need to know what is involved.

But you don't necessarily have to be planning to move – homeowners who intend to stay put for now sometimes look into getting an energy-efficiency certificate to find out what they can do to improve emissions, reduce the amount they spend on electricity bills, and keep their property warmer in winter and cooler in summer.

Although it may sound like just another task to grapple with in a long list when you're planning on selling or renting your home, acquiring an energy-efficiency certificate is actually fairly simple, as explained by utility boards Iberdrola and Endesa.

Who needs an energy-efficiency certificate?

Anyone who plans to sell their property or let it to tenants – including commercial properties – whether they are brand-new or pre-owned, provided their 'useful area size' is over 50 square metres. The 'useful area size' definition means that, even if a property is larger than 50 square metres, those parts of it which are technically inaccessible or 'unavailable' – such as thick walls – do not count when measuring floor space.

Properties to let which require an energy-efficiency certificate include those due to be occupied by long-term and permanent tenants, as well as holiday homes that are available for use for at least eight months of the year.

Who doesn't need an energy-efficiency certificate?

Owners of individual properties for sale or rent with a useable floor size of less than 50 square metres are exempt.

If you bought your property brand-new and now intend to sell it or let it out, you may well already have an energy-efficiency certificate. These are now automatically issued, by law, for new builds. But if you have since upgraded your energy rating through extra works – such as adding solar panels, better insulation, or double glazing – you might want to obtain a fresh certificate to reflect its improved category.

Properties left unoccupied – and which will continue to be left unoccupied – for more than eight months of the year do not need an energy-efficiency certificate. This might be the case if, for example, you own a second home that you only intend to let to holidaymakers in July and August, and use for yourself on occasional weekends out of season.

Read more at thinkSPAIN.com

Team Spain has smashed its own record medal-count and broken the 40 barrier for the first time.

After netting 31 medals in Rio 2016, the post-pandemic Paralympics set another national best for Spanish competitors – the haul of 36 from Tokyo 2020 represented the country's highest figure to date.

A last-minute silver for Alberto Suárez in the marathon brought the Paris 2024 total up to 40 – which included seven golds – and saw Spain shine most of all in swimming, athletics, triathlon and cycling.

Swimming remains the country's strongest discipline, with 15 medals, followed by cycling and athletics with eight each, and four for triathlon.

Spanish Olympic and Paralympic competitors typically have a greater battle on their hands than those of their neighbouring countries, given that government funding is very scarce – the majority have day-jobs – unlike the UK, second from top in the medal count after China, where candidates at the Games receive National Lottery grants. 

With the USA third from top, Spain was up against some powerful sporting nations, meaning its Paralympic sportspeople can be justly proud of coming 16^th in the medal total overall.

Read more at thinkSPAIN.com

GRANTS of up to €250 are available this year for replacing older air-conditioning units in a bid to encourage greater energy efficiency. 

Not all regional governments offer funding, but for those which do, no deadline for applying has been set as yet – meaning it may not be too late to request a cashback.

Known as a Plan Renove ('Renewal' or 'Replacement' Plan), payments are made when installing fitted units with an energy-efficiency rating of at least A+.

Unfortunately, funds are not given for first-time installations – only for upgrading older, existing units with a higher energy consumption.

Typically, applicants need to be registered as resident in the region whose government is offering the cash, meaning the scheme is unsuitable for holiday-home owners who live in a different part of Spain or abroad.

Read more at thinkSpain.com

RESIDENTIAL property prices rose again in July outside of Spain's major cities, with homes for sale on the islands now breaking post-recession records.

Leading quantity surveyor association TINSA says the average price tag is now 3% higher than a year ago, and that the most recent full-month figures – for July 2024 – reveal an increase of 0.7% in values compared with those of June.

Whilst property price rises are beginning to stagnate in the country's largest metropolitan areas and in land-locked provinces, those in more traditional tourism zones are seeing an across-the-board increase in value.

This is particularly the case in the Balearic and Canary Islands, where property price hikes between July 2023 and July 2024 have reached 8.6% - nearly three times the rate of inflation.

In these offshore regions, average home prices are now above the historic highs seen in 2007 and early 2008 – a time when property values across the country reached unrealistic heights never witnessed before and which preceded a nationwide housing market crash, provoking a long recession.

There is no suggestion of a recurrence of this grim period in Spain's recent history, however: The typical value of a residential property on the islands is around 1.7% above that of late 2007 which, allowing for inflation over the 17 years since, responds more to a healthy demand than an unsustainable property boom.

Coastal tourism enclaves see above-average price increases

TINSA considers this demand to be location-specific, given the Balearics' and Canaries' status as mature and well-established holiday destinations, and says this same factor is also driving up home prices elsewhere on Spain's Mediterranean seaboard.

All down the east coast, homes have risen in value by an average of 6.2% in the past year, with a typical increase in the last month of around 0.4% on the mainland side of the Mediterranean, compared with 1.1% in the Balearics.

Slowdown in major cities with high housing demand

A general slowdown has been noted this summer in major cities, particularly Madrid and Barcelona, with year-on-year price rises at 2.1% - below the national average and lower than the rate of inflation.

DEMAND for mortgages to buy a home has begun to rise for the first time since 2022, despite rates being at their highest levels in nearly a decade.

According to the Central European Bank (BCE), three of the largest economies in the Eurozone – Spain, Germany and Italy – registered an increase in new mortgage applications in the second quarter of this year, after many months of lack of demand due to loans becoming far more expensive.

France, the remaining country in the Eurozone's 'top four' economies, reported no change in demand in the last quarter.

After plummeting demand due to interest rate hikes, applications for consumer loans are now beginning to increase in the Eurozone, the BCE reveals: Forecasts for the second quarter of 2024 in banks across the common currency area averaged around a 6% rise in demand, but latest figures show the reality is nearer 13%, with Spain, Germany and France topping the list.

Spain and Germany also registered a slight increase in business loan requests in the first six months of this year, whilst Italy and France reported a significant decline.

The common currency interest rate, or Euribor, fell below zero for the first time in February 2016, and remained in negative figures until late 2022, when it began to soar at a pace never seen before.

Having topped 4% on some occasions since then, the Euribor closed July 2024 on 3.567%.

Property price rise creates 'affordable housing' crisis in Eurozone 

The BCE report states that falling residential property prices have helped push up demand for mortgages in some parts of the Eurozone – particularly Germany, which has seen year-on-year decreases of around 5.7%, and France, with values dropping by 4.8% – although the opposite has been seen in Spain, where purchase prices continue to climb.

Read more at thinkSPAIN.com