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MONEY

UPDATE: How to get Spain’s €200 cost-of-living subsidy

At the end of last year, the Spanish government announced a new €200 handout as part of a package of measures to help alleviate the rising cost of living. The time to apply is coming up in the next few weeks, so find out who is eligible and how to get it.

UPDATE: How to get Spain’s €200 cost-of-living subsidy
Families in Spain to get 200 euro benefit. Photo: JAIME REINA / AFP

At the end of December 2022, the Spanish government announced a new raft of measures worth €10 billion to help families against the rising costs of inflation.

One of these measures is a benefit of €200 for vulnerable families who are struggling with the cost of living and rising household bills.

READ ALSO: Spain axes VAT on basic foods to ease inflation pain 

Who can benefit from this help?

The €200 cheque is specifically for those families or households that earn under €27,000 per year.

Keep in mind, it’s not available to those where two or more members of the household earn under €27,000 each, but only when the income of the whole family adds up to less than this amount.

The government has confirmed, however, that it is available to those who live alone, provided they earn under €27,000 and meet all the other requirements.   

The average household income in Spain is currently €35,000, so this new aid will benefit the most vulnerable families in the country.

Are there any other prerequisites?

Yes, as well as earning under €27,000 it will not be handed out to those whose family heritage or savings exceed €75,000.

This means that the authorities will take into consideration how much savings you have in your bank account, as well as bonds, shares and stocks. They will also include physical assets such as vehicles or valuable pieces of art, but not the value of your house.

When can I apply for the aid?

You are only able to apply for the €200 grant during a specific period from February 15th until March 31st, 2023. You must make sure to do it during this window, otherwise, you could lose out. 

How do I apply?

In order to apply you will need to first apply for a digital certificate or [email protected]. You can then apply for it online through the Agencia Tributaria website page here. You will need to type in your NIE and identify yourself with the digital certificate or [email protected] 

This will then take you to the form to apply for the grant. It will ask for all your personal details such as your name, address, and employment situation. You will also have to fill out your bank details so that the handout can be sent directly to your account. It will be issued as a single payment. 

Is the aid compatible with other benefits?

The €200 cheque cannot be claimed by those who are already benefitting from the Minimum Vital Income (Ingreso Mínimo Vital) or those who receive a pension.

For those on Minimum Vital Income, this too has been extended into 2023 and has increased by 15 percent, together with non-contributory pensions.

How many people will benefit? 

The government has confirmed that a total of 4.3 million families will be able to access this handout, while the Ministry of Finance estimated that more than 8 million people in total will benefit from it.

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ECONOMY

Banco Santander posts record profit as rates rise

Spanish banking giant Banco Santander reported on Thursday record profits for 2022, as higher interest rates boosted its earnings and offset the costs from soaring inflation.

Banco Santander posts record profit as rates rise

The bank posted an annual net profit of €9.6 billion, up 18 percent from 2021 and higher than forecast by analysts polled by financial data firm FactSet.

“2022 was another strong year for Santander as we made further progress in growing our customer base profitably, while maintaining a rock-solid balancesheet,” Banco Santander head Ana Botin said.

Central banks have hiked interest rates worldwide in an effort to tamerunaway inflation, which jumped after economies emerged from Covidrestrictions, and surged higher still after Russia invaded Ukraine last year.

Botin said central banks and governments are expected to continue to focuson bringing down inflation this year.

“Our team has proven experience in navigating these conditions successfullyand we expect revenue growth will continue to offset cost inflation pressuresand the anticipated increase in cost of risk,” she said.

READ ALSO: Spain to slap windfall taxes on banks, energy firms

The bank, which has a strong presence in Europe and Latin America, added seven million new clients last year, bringing its worldwide total to 160 million.

Its net interest income, the equivalent of its revenue, rose 16 percent to reach €38.6 billion, slightly higher than forecast by FactSet.

The bank confirmed that shareholders would receive a payout of around 40 percent of the group’s underlying profit, divided equally between cashdividends and share buybacks.

Spain’s left-wing government plans to impose a temporary windfall tax on big banks in 2023 and 2024 to finance measures aimed at helping households cope with higher prices.

The measure is expected to add €1.5 billion to the state budget this year and a similar amount in 2024.

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