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Half of Spain’s job ads pay less than €1K/month

The so-called 'mileurismo' phenomenon continues to grow as data from employment portal jobandtalent.com reveals that 49 per cent of jobs offered in Spain in January had net salaries equivalent to less than €1,000 ($1,350) per month.

Half of Spain's job ads pay less than €1K/month
Spanish wages have fallen sharply in the last 2 years and the trend shows no sign of slowing. Photo: LEON NEAL / AFP

Information published in the company's blog showed that jobs in the 'mileurismo' category – those that pay less than €1,000 a month – had risen from 30 per cent  to 49 per cent of those on offer.

Of those, positions offering gross annual salaries of under €15,000 rose from 20 per cent to 31 per cent of the total, and jobs offering €16,000 to €20,000  from 6 per cent to 18 per cent.

The blog presented the figures as a complement to data released this week by the Juan Alfaro Club of Excellence's Labour Reform Monitor which showed that average wages across Spain had fallen by 10% since the introduction of new legislation designed to introduce flexibility into the job market.

Average wages in Spain are believed to have fallen 20% in total over the last 24 months.

Spain's Minister for Tax and Public Administration, Cristóbal Montoro, however, said last year that wages weren't falling but were instead "moderating their growth".

But Prime Minister Mariano Rajoy admitted that wages were going down in December when he told reporters: "In difficult situations, it is better to bet on earning a little bit less and maintain as many jobs as possible."

Spanish daily La Información collated statements from a number of sources, all of which seemed to support the claim that wages in Spain are continuing to drop.

The IMF recently called for further wage cuts to improve Spanish competitiveness.

Human Resources agency PeopleMatters said that 25% of businesses they had contacted had plans to lower wages in 2014 regardless of economic circumstances, while the Spanish Federation of Business Organizations (CEOE) recommended that wages should be frozen or, at most, raised by 0.6 per cent.

The average monthly in Spain of €1,615 per month is already below the EU average of €1,916, according to last year's Adecco Monitor of Employment Opportunity and Satisfaction, and far from the averages in Germany (€2,421), the UK (€2,321) and France (€2,130).

Only 30 per cent of Spanish jobs offer wages equivalent to the EU average, and only 7 per cent offer wages equivalent to those found in Europe's top economies.

Jobsandtalent indicated that job offers are increasingly clustering around the major hubs of Barcelona and Madrid; almost 41 per cent of jobs offered in Spain are in the two cities.

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WORKING IN SPAIN

Your questions answered about Spain’s digital nomad visa

Spain's long-awaited digital nomad visa is finally available, but there is still much confusion about it, so we've answered all your burning questions.

Your questions answered about Spain's digital nomad visa

Spain’s Startups Law, which also introduced a new digital nomad visa, was approved at the end of 2022, but didn’t come into force until January 2023 and all the details are only just now being revealed. 

From how much money you need to your tax obligations and if you can bring family, members, here are all your questions answered. 

READ ALSO – REVEALED: Everything you need to know about applying for Spain’s digital nomad visa

What are the financial requirements to apply for the visa?

You must prove that you earn 200 percent of the SMI or Minimum Interprofessional Salary. On January 31st 2023, the Spanish government announced they would increase the minimum wage to €1,260 per month. 

This means that you must be able to prove that you will have an income of at least €2,520 per month or €30,240 per year. You can prove this amount either with job contracts, invoices or bank statements.

Can I bring family members with me on the visa?

Yes, you are permitted to bring partners and children with you to Spain on the digital nomad visa.

In order to add a family member, however, you must prove that you have an extra 75 percent of the SMI or minimum wage. This currently equates to an extra €945. For each additional family member after this, such as children, you will have to prove you have an extra 25 percent of the SMI, which is €315.

READ ALSO: Ten of the best cities for digital nomads to move to in Spain

Do I need private health care?

You must also make sure that you have either private or public health insurance, simply getting travel insurance with health coverage is not enough.

The Spanish government mentions the option of getting public health insurance instead of private cover, but it is not yet clear whether this means that you will have to contribute to the social security system or be eligible for the convenio especial – the public pay-in scheme.

Do I have to have any professional qualifications? 

You must prove that you either have professional qualifications or a degree relating to your job or that you have at least 3 years’ experience working in your field. 

How long is the visa valid for?

The visa will be valid for an initial period of one year, however, it can be renewed for up to five years. After that, if you want to continue living in Spain, you will be able to apply for permanent residency.

Does the visa give me access to travel around the EU?

Yes, once you have your visa and you’re in Spain, you will be able to apply for a residency card. This will allow you to travel throughout the EU during the time that you’re living in Spain.

Keep in mind though, it won’t give you the right to work or live in other EU countries, but you will be able to go for short breaks. 

How long do I have to stay in Spain for the visa to be valid?

Many digital nomads choose to split their time between different countries. If this is your case, and you want to split your time between back home in the US or the UK for example, you must make sure you stay in Spain for a maximum of 6 months per year for your visa to remain valid.

Do I have to pay tax in Spain?

Yes. If you stay longer than 183 days, then you will be considered a tax resident in Spain. This means that any money you earn while working in Spain, even if it comes from clients or companies abroad will be taxable.

However, the digital nomad visa grants you tax benefits, such as being able to pay the Non-Residents Tax Rate (IRNR) rather than the regular progressive income tax (IRPF) that Spain’s resident workers pay.

Non-Resident Tax was previously only applicable to non-residents such as second-home owners, but an exception has been made for digital nomad visa holders even if they spend more than 183 days a year in Spain and are therefore technically fiscal residents.

IRNR is generally 24 percent in Spain and digital nomads will be able to pay this instead of the more progressive rates, as long as they earn below €600,000 a year.

This favourable tax rate will be available for four years, if you choose to renew your visa. 

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