From a change to the temporary residency rule to a new British mayor in Mallorca, here is a round-up of the latest news from Spain. Not least of all, the snap General Election to be held on Sunday, July 23rd.
Find homes in Spain via our property portal.
General election
Keep up-to-date with Spain’s upcoming elections.
Currently, the government is made up of the PSOE (Partido Socialista Obrero Español), a Socialist party which is supported by regional parties in Catalonia and the Basque Country. During their term, they have brought in many social reforms and laws and a housing law, which we discussed recently.
The polls are forecasting a change of government and that the PP (Partido Popular), a centre-right party, will have the largest number of seats but fall short of an overall majority. They would therefore need support from Vox, a far-right party which has been gaining in popularity in recent years. The two parties disagree on certain fundamentals but might find an accord in order to govern.
For those of you planning on moving here, do keep an eye open for the result of the election. All the UK papers will report on it.
Inflation and economy
The good news in Spain is that inflation in Spain is the third lowest in the EU and was now down to 2.9% at the end of last month. As a result, price increases are reduced and the pressure on people is decreasing.
The government’s move to remove IVA (VAT) on essential foodstuffs has helped to keep food inflation down but most things are still around a third more expensive than a year ago.
The Euriobar, also known as the Euro Interbank Offered Bank Rate, to which mortgages are tied in Spain, is rising. Currently, it stands at 4%. Experts predict that it is likely to rise further. However, it is still possible to find a good deal, should you be looking to renew or start a mortgage.
Figures published by the National Institute of Statistics in Spain show that the economy grew by 0.6% in the first quarter of 2023. While this might not seem like much, it is considerably better than many of its fellow EU countries. This is mainly due to a healthy export market and also goods and services. This year will see tourist numbers return to pre-pandemic levels giving a boost to the national economy.
According to the European Commission, 2024 should be easier for consumers and households. The Retail Price Index in Spain is expected to stay around 4% this year and fall to 2.7% next year.
Hire cars
Last week Spain’s Traffic Authority (DGT) and the Car Rental Association (Feneval) introduced a brand-new digital ID for rental cars. Known as DNI-Car, it is a QR code connected to an app and will replace paper documents. It will be available for the entire rental period.
It will be useful if you are stopped by the police as they can find out all the information about the car, the hire company, the driver and more information just from this one app on your mobile phone.
Another advantage is that when you rent a vehicle, you can check its details and roadworthiness, its insurance cover and so on.
The authorities believe that this new system will prevent between 6000 12,000 rental car thefts a year. At the moment, the DNI-Car voluntary but it is very likely to become mandatory in the future.
Masks
The wearing of masks has been compulsory in Spanish pharmacies, hospitals, in retirement homes. As from 23rd June, masks in these locations are no longer be required.
Temporary residency rule change
Until a recent court ruling, people with temporary residency in Spain would automatically lose it if they spent more than six months out of the country in one year.
The Supreme Court has found this to be an unfair practice and has annulled the clause. It was deemed to have limited the basic right of freedom of movement for foreign temporary residents in Spain.
So, from now on a foreign resident may be removed from Spain by law enforcement, no longer by the immigration authorities.
Many people were affected by the ruling during the pandemic as they were unable to travel to and from Spain.
Note: You can apply for Permanent residency after having lived in Spain for five years.
A first for Mallorca
Beach of Sant Joan, Mallorca.
The inhabitants of the small town of Sant Joan in Mallorca have now got a new mayor following last month’s local elections……… and he is British!
Nine years ago, Richard Thompson moved to the lovely island and has been a councillor for the past four years. He now oversees a population of 2,000 – the community is a mix of locals and those that have moved from overseas. Many local people are surprised, even shocked that their mayor is a British citizen, but most have said they will reserve judgement until they see how Mr. Thompson governs.
