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Visas and money: 10 things you should know about Spain's IPREM index

The Local Spain
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Visas and money: 10 things you should know about Spain's IPREM index
The IPREM index is important for many foreigners in Spain. Photo: John Schnobrich/Unsplash

If you have ever tried to apply for a Spanish visa or you live here and have tried to get financial aid, you will have probably heard of the term IPREM. But what exactly is it? Here's what you need to know about the IPREM and how it affects foreigners.

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What is the IPREM?

IPREM stands for Indicador Público de Renta de Efectos Múltiples, and it’s essentially a government index used to establish the limits for state aid, as well as a base level income in order to qualify for certain types of visa (more on that below).

The IPREM was actually created to replace Spain’s minimum income as the index for granting benefits, and it's roughly half the state-mandated minimum wage (known as Salario Mínimo Interprofesional).

READ ALSO: Padrón: 16 things you should know about Spain's town hall registration

What's it used for?

The IPREM is used as an index or threshold for government aid, whether it be unemployment, grants, school grants, certain subsidies for the purchase or rental of housing, legal aid, or energy subsidies.

This means, for example, that if you want to apply for a grant, it is possible that one of the requirements is that the income of the person applying for the grant, or of their family unit, does not exceed a certain amount per the IPREM.

The IPREM changes every year

In order to keep pace with inflation and changing prices, the IPREM is updated by the government every year.

So if you’re applying for state aid, or a certain type of visa that requires proof you earn more than the IPREM (though in many cases, it will be 3 or 4 times the IPREM), make sure you’re looking at the latest year.

How much is it worth in 2024?

Saying that, unusually this year the IPREM for 2024 actually stayed the same as it was the previous year (which is rare) because the government didn’t have an official budget.

As such, for 2024 the IPREM is €600 per month, €7,200 per year or €8,400 for 14 payments (as is often the case in Spain).

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You need to know about the IPREM to get Spain’s non-lucrative visa

IPREM is used as a minimum income scale for non-lucrative applicants, who need to prove that they have 400 percent of the annual IPREM.

The annual IPREM is €7,200, so four times this amount is a total of €28,800. For every family member included in the residency application, it’s an extra 100 percent of the IPREM, which is an extra €7,200 for the year.

This means that a couple will need to prove savings or passive income of €36,000.

READ ALSO: What financial proof can I show for Spain's non-lucrative visa?

According to the Spanish government website: “The applicant must submit the originals and a copy of the documents proving that they have sufficient financial means to cover the expenses of residing in Spain for the initial year of the residence permit, or accrediting that they have a regular source of income, for themselves and, where applicable, for the family members accompanying them.

“The minimum required amount is equivalent to 400 percent of Spain's IPREM. To this amount must be added 100 percent of the IPREM for each family member in the applicant's care.”

So, you’ll need to be able to prove an annual income of at least €28,800 to enter the country on the NLV.

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The IPREM is used for Spain's Golden Visa requirements

Although Spain has announced it will be scrapping the golden visa through real estate, for now, it's still available. To be eligible you need to invest in property worth €500,000 or more, or invest €1 million in shares in Spanish companies or have that much in a Spanish bank account. 

On top of this, you need to prove that you have at least 400 percent of the IPREM a month to live on. This means €2,400 per month in 2024. 

It's also used as a financial reference for getting a student visa

If you are applying for a student visa, you will also need to prove you have money to live on. The requirement for this is 100 percent of the IPREM per month, which in 2024 is as you know is €600. If you are bringing family members with you to Spain, you will also need 75 percent of the IPREM for the first one and 50 percent for each additional family member. 

Although this is not really enough to live on in most big Spanish cities, it's a starting point. You are also allowed to work up to 30 hours per week for additional income. 

The IPREM is used for allocating social housing in Spain

IPREM is also used as an income threshold for accessing social housing in Spain.

Though each region in Spain has slightly different requirements, they are generally:

  • You must be of legal age
  • You must be legally registered in your region
  • You cannot already own your own home
  • Your income as a family must not exceed 5.5 times the IPREM. 

So, as the IPREM is €600 per month, in order to qualify, your household income cannot exceed €3,300 per month.

You must be able to prove your income with a certificate from the tax agency, as well as the income of all members of your family unit.

READ ALSO: How foreigners can access social housing in Spain

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IPREM is also linked to unemployment benefit

The IPREM is closely related to unemployment benefits in Spain (known as el paro), as it is used to establish the maximum and minimum limits received.

These were tweaked slightly by the government in recent months, so from November 1st 2024, the amount of benefit received will decrease in accordance with the periods of time spent receiving it.

  • During the first 180 days on unemployment, 95 percent of the IPREM (€570 per month) 
  • From the 181st to the 360th day: 90 percent of the IPREM (€540)
  • From day 361 and until the end of the period: 80 percent of the IPREM (€480)

Digital Nomad Visa

The Digital Nomad Visa or DNV is in fact not linked to the IPREM, the the NLV. It's connected to the minimum wage instead, which is slightly different. The monthly minimum wage for 2024 is €1,323 gross per month (over 12 payments), which is different from two times the IPREM.

You need 200 percent of the minimum wage to be eligible for the DNV. Find out more about the financial requirements for the DNV in 2024

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