Home

Spain

Spain, located in southwestern Europe, is renowned for its vibrant culture, history, and varied landscapes. Madrid, its capital, is a hub of art, fashion, and nightlife, while Barcelona is famous for its modernist architecture, particularly the works of Antoni Gaudí. Spain's history includes the Moorish influence, seen in cities like Granada with the Alhambra, and a legacy of maritime exploration. The country enjoys a Mediterranean climate, with sunny beaches along the Costa del Sol, the rugged mountains of the Pyrenees, and the unique ecosystems of the Balearic and Canary Islands. Spanish cuisine, from tapas to paella, is celebrated worldwide. Spain is a member of the European Union, using the Euro, and has a strong, albeit recovering, economy. It faces challenges like regional separatist movements, particularly in Catalonia, unemployment, and corruption. However, its cultural richness, warm climate, and welcoming people continue to attract millions of tourists annually.

last updated on Jan 01, 2025




Taxes

Individual tax rate: Moderate to High

Spain uses a progressive tax system for personal income, where rates for 2024 range from 19% to 47%, depending on income and the autonomous community's additional rates. Residents are liable for tax on their worldwide income, while non-residents pay a flat rate of 24% (19% for EU/EEA residents) on Spanish-source income. There's also a wealth tax on net worth exceeding a certain threshold, varying by region. This system allows for numerous deductions and tax credits, but the complexity of managing both national and regional tax laws, understanding eligibility for special tax regimes like the Beckham Law for expatriates, and navigating through exemptions and deductions requires significant effort. Frequent changes in tax legislation further complicate matters.

  • Challenges: Moderate to High, due to the complexity of regional variations, tax benefits, and ongoing legislative updates.
  • Source: Spanish Tax Agency

Corporate tax rate: Low to Moderate

The standard corporate tax rate in Spain is set at 25% for 2024, with special rates for new companies (15% for the first two years of profit) and small businesses. The Canary Islands have a reduced rate for certain activities. Additional incentives exist for investments in R&D, patents, or environmental initiatives. Companies must also handle VAT, local taxes, and potentially regional variations. The challenges include understanding and applying for available tax incentives, complying with both national and regional tax obligations, and navigating through complex tax planning to optimize tax liabilities.

  • Challenges: Moderate, due to the need for strategic tax planning, understanding regional differences, and compliance with multiple tax regimes.
  • Source: Spanish Tax Agency

Crypto friendly: Moderate

Spain has been relatively open to cryptocurrencies, with no specific capital gains tax on individuals for personal crypto transactions if not considered part of business income. However, VAT and income tax might apply to business transactions or professional crypto activities. The regulatory environment is evolving to align with EU directives, potentially introducing more clarity but also complexity. The challenges include understanding the tax implications of crypto transactions, staying current with regulatory changes, ensuring compliance with anti-money laundering laws, and managing the tax treatment of diverse crypto activities like staking or mining.

  • Challenges: Moderate, primarily due to regulatory uncertainty, tax reporting complexities, and compliance with new regulations.
  • Source: Bank of Spain

Bank account friendly: Easy

For residents in Spain, opening a bank account is relatively straightforward with a NIE (tax number), proof of address, and ID. Non-residents might encounter more challenges, often needing in-person visits, sometimes facing higher fees or minimum balance requirements. Language barriers can complicate interactions, and banking practices might differ from what foreigners are used to. However, major banks have become more accustomed to serving international clients, particularly in areas with high expatriate populations. The main challenges for non-residents include navigating the paperwork, understanding local banking norms, and dealing with potential language issues.

  • Challenges: Easy to Moderate, with the main difficulties being for non-residents, language comprehension, and adapting to Spanish banking systems.
  • Source: Bank of Spain


Visas

Investor Visa: Hard

Spain's Golden Visa or Investor Visa allows non-EU nationals to gain residency by making significant investments, such as purchasing real estate worth at least €500,000, investing €1 million in a Spanish company, or €2 million in government bonds. This visa leads to a one-year residency permit, renewable, and offers a pathway to citizenship. However, recent discussions about possibly ending or modifying the program due to concerns over housing prices add uncertainty. The process involves stringent due diligence, understanding local real estate laws, and ensuring investment continuity.

  • Challenges: Hard, due to high financial thresholds, potential policy changes, and the complexity of investment regulations.
  • Source: Spanish Ministry of Foreign Affairs

Digital Nomad Visa: Moderate to Hard

Introduced in 2023, Spain's Digital Nomad Visa targets remote workers, allowing stays up to one year, renewable. Applicants must earn at least €2,334 monthly, have health insurance, and not have been a Spanish resident for the past five years. The visa supports family reunification and allows for a limited amount of work within Spain. The challenge lies in proving income stability, navigating Spanish bureaucracy, and dealing with tax implications, as digital nomads might be subject to Spanish taxation.
  • Challenges: Moderate to Hard, primarily due to income verification, tax considerations, and bureaucratic processes.
  • Source: Spanish Ministry of Inclusion, Social Security and Migration

Marriage Visa: Easy to Moderate

For foreigners marrying Spanish citizens, this visa requires proof of marriage, sometimes evidence of cohabitation, and financial stability. It leads to residency rights, with the possibility of citizenship after a decade of continuous residence. Challenges include proving the authenticity of the relationship to combat marriage fraud, cultural adaptation, and sometimes language barriers.
  • Challenges: Moderate, due to the need for demonstrating a genuine relationship and navigating family law in Spain.
  • Source: Spanish Embassy

Visitor Visa: Easy to Moderate

This Schengen visa is for short stays up to 90 days within a 180-day period, for tourism, visiting, or short business trips. Many nationalities don't require a visa for such stays, but for others, it involves proving financial means, accommodation, and return travel. The main challenge is for visa-required nationals, dealing with application processes and potential delays.

  • Challenges: Easy to Moderate, with challenges mainly for those from countries requiring visas.
  • Source: Spanish Ministry of Foreign Affairs

Student Visa: Easy to Moderate

Available for those enrolled in Spanish educational institutions, requiring admission, proof of financial support, and sometimes health insurance. It permits part-time work under certain conditions. The primary challenges include securing university admission, proving financial solvency, and adapting to Spain's educational system.

  • Challenges: Low to Moderate, due to the need for academic acceptance and financial proof.
  • Source: Spanish Ministry of Education

Work Visa: Moderate to Hard

For non-EU citizens with job offers in Spain, including categories like the EU Blue Card for highly skilled workers. Requires employment contracts, qualifications, and often proof of salary above a certain threshold. The main challenges are securing a job offer, which can be competitive, understanding labor law compliance, and navigating the application process, which can be time-consuming.

  • Challenges: Moderate to Hard, due to job market competition and the bureaucratic nature of the visa application.
  • Source: Spanish Public Employment Service

Economy and Business

Property Ownership: Moderate to Hard

In Spain, foreigners can own property with the same rights as Spanish nationals. The process involves obtaining a NIE (Foreigners' Identification Number), opening a Spanish bank account, and managing taxes like the Property Transfer Tax (ITP) for existing properties or VAT for new builds. Ownership can be freehold or, less commonly, leasehold. There are no restrictions on foreigners buying property, but understanding local laws, regional differences in property taxes, and navigating the bureaucracy can be challenging. Additionally, securing financing might be harder for non-residents or those without a Spanish credit history.

  • Challenges: Moderate, due to legal complexities, tax considerations, and potential financing issues for non-residents.
  • Source: Spanish Ministry of Transport, Mobility and Urban Agenda

Payment friendly: Moderate

Spain has modernized its payment systems, with widespread acceptance of credit/debit cards and the rise of digital payment solutions like Bizum, similar to Venmo. Cash is still preferred in some rural areas or small businesses, but major cities are increasingly cashless. However, for foreigners, language can be a barrier when dealing with local payment methods or understanding bank fees. Non-residents might find it more challenging to set up local payment methods due to the need for a Spanish bank account or local ID.

  • Challenges: Easy to Moderate, with the main hurdles being language barriers and adapting to local payment preferences.
  • Source: Bank of Spain

Economy: Moderate

Spain's economy is one of the largest in Europe, with key sectors including tourism, agriculture, manufacturing, and services. It has shown resilience in recovery from economic downturns but faces challenges like high unemployment, particularly among the youth, public debt, and regional economic disparities. For foreign investors or businesses, understanding the economic landscape, navigating through regional differences (like Catalonia's push for independence), and dealing with regulatory changes can be complex. The country's economic stability is generally good but subject to fluctuations influenced by global markets and internal political dynamics.

  • Challenges: Moderate to Hard, due to economic volatility, regional economic variations, and regulatory complexities.
  • Source: Spanish National Institute of Statistics

Business friendly: Moderate

Spain has made efforts to be more business-friendly, with tax incentives, startup programs, and simplification of business registration. The country offers benefits for innovation and R&D, but challenges include bureaucratic red tape, language barriers, and sometimes slow judicial processes for business disputes. Corporate tax rates are competitive, but compliance with local and regional regulations can be demanding. Cultural business practices also differ, requiring adaptation for those from different business cultures.

  • Challenges: Moderate, due to bureaucratic hurdles, cultural adjustments, and compliance with diverse regulations.
  • Source: Invest in Spain (ICEX)

Affordability: Moderate

Spain is considered relatively affordable compared to other Western European countries, particularly in terms of cost of living outside major cities like Madrid or Barcelona. Housing can be a significant expense, with property prices having risen in urban areas due to tourism and foreign investment. Rural areas offer more budget-friendly options. For foreigners, additional costs like language learning, healthcare, or adapting to local lifestyle might affect perceived affordability. The disparity between urban and rural living costs can be stark, influencing one's experience of affordability.

  • Challenges: Easy to Moderate, with the main challenge being urban vs. rural price differences and understanding the cost of living for non-locals.
  • Source: Numbeo

Communications and Technology

Internet: High speed

Spain boasts a well-developed internet infrastructure, with high-speed broadband widely available across the country. Fiber-optic connections are common, especially in urban areas, offering some of the fastest internet speeds in Europe. Public Wi-Fi is increasingly accessible in cities like Madrid and Barcelona, though rural connectivity might lag. For foreigners, the main challenges include understanding service contracts, which are often in Spanish, and navigating through different ISPs to find the best deal. There might be language barriers when dealing with customer service, although many providers offer some level of English support.

  • Challenges: Easy to Moderate, due to language barriers and the need to understand various service plans.
  • Source: Spanish National Markets and Competition Commission

Communication: Moderate

Communication in Spain is facilitated by high literacy rates and a culturally rich environment where personal interaction is valued. English is commonly taught in schools, but proficiency can vary, especially outside major urban centers or among older generations. Business communication often involves formalities and a respect for hierarchy. Digital communication platforms like WhatsApp are extremely popular, but traditional communication methods like face-to-face meetings retain importance. For foreigners, challenges include overcoming language barriers, adapting to cultural nuances in communication styles, and possibly dealing with slower bureaucratic responses.

  • Challenges: Moderate, primarily due to language issues and cultural adaptation in communication.
  • Source: Spanish Ministry of Education and Vocational Training

Phone friendly: High

Spain's mobile network coverage is extensive, with 4G widely available and 5G beginning to roll out. Major telecom providers like Movistar, Vodafone, and Orange offer competitive plans, including options for tourists or expatriates. SIM cards are easily accessible, even at airports, but choosing the right plan can be complicated due to language barriers or understanding local terms and conditions. Most foreign phones work in Spain, but there might be compatibility issues with certain network frequencies or the need for unlocking if the phone is carrier-locked. For non-residents, setting up services might require additional steps like providing local address proof or dealing with payment methods.

  • Challenges: Easy to Moderate, with challenges mainly involving language barriers, plan selection, and initial setup for non-residents.
  • Source: Spanish Association of Telecommunication Operators

Social, Safety and Politics

Progressive: Moderate

Spain has shown progressive tendencies in social policies, including the legalization of same-sex marriage in 2005 and progressive laws on gender identity and abortion rights. There's also a strong commitment to environmental sustainability, with initiatives like renewable energy projects. However, the country faces challenges with gender equality, particularly in the workforce and politics, where disparities persist. Regional differences can also affect progressiveness, with cities like Madrid and Barcelona being more liberal compared to some rural areas. Legalizing cannabis for recreational use remains a contentious issue, reflecting a broader debate on progressive policies.

  • Challenges: Moderate to High, due to regional variations, cultural resistance to change in some sectors, and the ongoing need for social equality reforms.
  • Source: Spanish Parliament


Religions: Less than 5

Spain is predominantly Roman Catholic, though church attendance has declined, and there's a growing secularization. Other religions include Islam, due to historical ties and recent immigration, and smaller communities of Protestants, Jews, and others. Freedom of religion is protected, but Catholicism's cultural influence is still strong, especially in public ceremonies and holidays. Challenges for religious minorities might include integration into a Catholic-majority society, dealing with occasional discrimination, or finding community support in less urban areas.

  • Challenges: Easy to Moderate, with the main issues being cultural integration and potential for discrimination, though freedom of religion is well-established.
  • Source: Spanish Ministry of Justice


Safety: Moderate

Spain is generally considered safe, with low rates of violent crime. Major cities like Madrid and Barcelona have high tourist areas where petty crimes like pickpocketing are more common, requiring vigilance. The police are generally well-regarded, and cities are safe to walk at night. However, issues like domestic violence and gender-based violence remain significant. Safety can also be impacted by occasional terrorist threats and natural events like wildfires or floods.

  • Challenges: Easy to Moderate, with the primary concerns being petty crime in tourist areas and specific societal safety issues.
  • Source: Spanish Ministry of the Interior


Political Stability: Moderate

Spain enjoys a stable democracy since the transition from Franco's dictatorship in the late 1970s, with regular elections and peaceful government transitions. However, challenges include managing regional tensions, particularly with Catalonia's independence movement, leading to occasional political unrest. Economic policies, corruption scandals, and coalition government dynamics can also lead to political instability or gridlock in policy implementation.

  • Challenges: Moderate, due to regional separatist movements, economic policy debates, and the complexity of multi-party systems.
  • Source: Spanish Government


Corruption: Moderate

Corruption in Spain has been a notable issue, with high-profile cases affecting public trust, especially in politics and business sectors. There are ongoing efforts to increase transparency and combat corruption, but it remains a challenge. Spain's score on the Corruption Perceptions Index shows improvement, yet the public perception of corruption persists, often influencing political discourse and public administration efficiency.

  • Challenges: Moderate to High, given the historical presence of corruption, public skepticism, and the need for continuous reform.
  • Source: Transparency International Spain

Friendliness: High

Spaniards are known for their warmth, hospitality, and sociability. The culture encourages community interaction and openness, making it relatively easy for foreigners to feel welcomed, especially in urban areas with a high expat presence. However, language barriers can affect social integration, and cultural differences in social customs might require adjustment. In more rural or traditional areas, acceptance might take longer, reflecting a more insular community spirit.

  • Challenges: Easy to Moderate, with challenges mostly related to language and cultural adaptation, though the inherent friendliness of the populace eases social integration.
  • Source: Spanish Tourism Institute


Education

Average education: High literacy

Spain's education system is structured into primary (6 years), secondary (4 years), and higher education. Compulsory education extends from ages 6 to 16, with high school (Bachillerato) or vocational training available thereafter. The system has shown improvement in PISA scores, particularly in reading, but challenges include regional disparities in educational quality, the need for educational reform to emphasize critical thinking over memorization, and addressing high youth unemployment which reflects on the educational system's preparation for the job market. Language barriers for non-Spanish speaking students and the integration of immigrant students also pose challenges.
Spain has a high literacy rate, with the adult literacy rate (for individuals aged 15 and above) reported to be around 98.59% as of 2020. This statistic reflects the country's commitment to education, where literacy is defined as the ability to read and write with understanding a short, simple statement about everyday life. The literacy rate has shown a steady increase over the years, indicating improvements in educational access and quality.

  • Challenges: Moderate to High, due to the need for systemic reform, addressing regional educational disparities, and improving employability outcomes.
  • Source: Spanish Ministry of Education and Vocational Training

International Schools: Moderate

Spain hosts a variety of international schools, especially in major cities like Madrid and Barcelona, offering curricula such as the International Baccalaureate (IB), British, or American systems. These schools cater predominantly to expatriate communities but are also popular among locals looking for international education. Tuition fees are high, often making it a luxury. Admission can be competitive, requiring academic records, interviews, and sometimes language proficiency tests. Availability can be limited, leading to long waiting lists or the need for relocation. Language can be a barrier for schools that don't use English or Spanish as the primary language of instruction.

  • Challenges: Moderate to High, primarily due to high costs, competitive admissions, and limited availability in desired locations.
  • Source: Spanish Ministry of Education and Vocational Training

Technological expertise: Developing

Spain has been making strides in technology, particularly in fields like renewable energy, biotechnology, and digital services. The presence of tech hubs in Barcelona and Madrid has fostered a vibrant tech community. Universities produce a skilled workforce, and there's government support for tech startups through grants and incubators. However, challenges include the "brain drain" of tech talent to other European countries offering better opportunities, a need for increased investment in R&D, and sometimes bureaucratic hurdles for tech businesses. Language can also be an obstacle for international collaboration, although English is increasingly used in tech sectors.

  • Challenges: Moderate, due to the need for attracting and retaining tech talent, fostering innovation through policy, and overcoming bureaucratic inefficiencies in business operations.
  • Source: Spanish Ministry of Science, Innovation and Universities


Health

Seasons: 4 seasons

Spain promotes an active lifestyle with its diverse landscapes, encouraging activities like hiking, cycling, and water sports. Urban areas have gyms and fitness centers, but they might be pricey, and the fitness culture can differ from other countries, with less emphasis on extreme fitness and more on social activities like walking or playing sports. The culinary tradition, rich in hearty foods, can pose challenges for those focused on fitness diets. Cultural attitudes towards body image might also differ, potentially impacting fitness goals. Access to outdoor fitness facilities can be less in rural areas, and language might be a barrier in fitness classes.

  • Challenges: Moderate, due to cultural dietary habits, cost of gym facilities, and cultural attitudes towards fitness.
  • Source: Spanish Sports Council

Fitness: Moderate

Spain promotes an active lifestyle with its diverse landscapes, encouraging activities like hiking, cycling, and water sports. Urban areas have gyms and fitness centers, but they might be pricey, and the fitness culture can differ from other countries, with less emphasis on extreme fitness and more on social activities like walking or playing sports. The culinary tradition, rich in hearty foods, can pose challenges for those focused on fitness diets. Cultural attitudes towards body image might also differ, potentially impacting fitness goals. Access to outdoor fitness facilities can be less in rural areas, and language might be a barrier in fitness classes.

  • Challenges: Moderate, due to cultural dietary habits, cost of gym facilities, and cultural attitudes towards fitness.
  • Source: Spanish Sports Council

Pollution: Moderate

Spain has made strides in reducing pollution, particularly in air quality in major cities due to stricter emissions standards and promotion of public transportation. However, air quality can still be problematic during heatwaves or in areas with heavy traffic or industry. Water pollution, particularly from agricultural runoff, is another concern. Noise pollution in cities can be significant, and waste management, while improving, faces challenges with plastic waste. Foreigners might struggle with understanding local environmental policies or accessing information in languages other than Spanish.

  • Challenges: Moderate, due to varying pollution levels by region, the need for environmental education, and language barriers.
  • Source: Spanish Ministry for the Ecological Transition

Healthcare: Moderate

Spain offers universal healthcare through its National Health System (SNS), providing quality care at low or no cost to residents. The system is highly regarded for its efficiency, though waiting times for non-emergency care can be long. Private healthcare exists for those who can afford it, offering quicker access and additional amenities. Challenges include language barriers for non-Spanish speakers, especially in less urban areas, navigating the system for foreigners, and occasionally dealing with bureaucratic processes. The aging population also puts strain on healthcare resources.

  • Challenges: Moderate to High, due to language issues, waiting times, and the complexities of navigating both public and private healthcare systems.
  • Source: Spanish Ministry of Health


Diversity

Food diversity: Highly diverse

Spain's culinary scene is renowned for its rich variety, rooted in regional traditions that include paella from Valencia, tapas from Andalusia, and the Basque Country's pintxos. The country has also embraced international cuisines, particularly in urban centers like Madrid and Barcelona, where you can find dishes from around the world. There's a growing awareness of dietary needs, with more vegetarian, vegan, and gluten-free options available, though these might be more prevalent in cities than in rural areas. The challenge for foreigners might include navigating menus in Spanish or Catalan, exploring beyond tourist-oriented restaurants, and finding specialized diets in less urban settings.

  • Challenges: Easy to Moderate, with the main hurdles being language barriers and accessing diverse dietary options outside major urban centers.
  • Source: Spanish Tourism Board

Ethnics diversity: Highly diverse

Spain has become increasingly ethnically diverse due to immigration, particularly from Latin America, North Africa, and Eastern Europe. Major cities like Madrid, Barcelona, and Valencia are multicultural hubs where you can find communities from Brazil, Morocco, Romania, and beyond. This diversity is reflected in culture, cuisine, and festivals. However, despite legal protections for equality, challenges include integration, with some immigrants facing discrimination or difficulties in the job market. Language can be a significant barrier, and cultural integration might take time, especially in areas less accustomed to diversity. Regional attitudes can vary, with some rural or traditional areas less open to change. Legal pathways for long-term residency or citizenship can also be complex for non-EU migrants.

  • Challenges: Moderate to High, due to the need for cultural and social integration, combatting discrimination, language barriers, and navigating immigration laws for long-term stay or citizenship.
  • Source: Spanish National Statistics Institute