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New Report Reveals Why Thousands Of Immigrants Are Leaving Spain Again

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Like several other European countries, Spain faces demographic challenges linked to an ageing population and low birth rates. Photo credit: Renata Photography/Shutterstock

More than half of the immigrants who arrive in Spain eventually leave again, according to a new report from Spanish economic think tank Funcas, which says high housing costs, insecure employment and limited long-term stability are making it difficult for many foreign workers to remain in the country.

The study examined migration patterns between 2002 and 2024 and found that around 15 million foreign nationals arrived in Spain during that period. However, the country’s net increase in foreign population was only around seven million people, indicating that a large proportion later moved elsewhere or returned to their countries of origin.

Researchers said the figures place Spain among the European countries with the lowest immigrant retention rates, with only around 48% of arrivals remaining in the country over the long term.

Housing and unstable work linked to departures

According to the report, the main reasons many immigrants leave Spain are connected to economic pressures, particularly difficulties accessing stable employment and affordable housing. The report suggested that many migrants initially arrive to work in sectors such as hospitality, agriculture, construction and care services, where labour shortages continue in parts of the economy. However, temporary contracts, seasonal employment and lower average wages compared with some other European countries often make long-term settlement difficult.

The report also highlighted the growing cost of housing as a major factor. Rising rents in cities including Madrid, Barcelona, Valencia and Málaga have increased pressure on lower-income households, including many foreign workers. Researchers noted that limited housing supply and increasing competition for rental properties can leave many migrants in temporary or overcrowded accommodation, particularly in larger urban areas and tourist destinations.

Spain remains dependent on immigration

Despite the high number of departures identified in the report, Spain continues to rely heavily on immigration to support workforce demand and population growth. Like several other European countries, Spain faces demographic challenges linked to an ageing population and low birth rates. Economists have repeatedly argued that immigration will play an important role in maintaining labour supply and supporting public services in the future.

The Funcas study warned, however, that attracting migrants may not be enough if many continue to view Spain as a temporary destination rather than a place to settle permanently. Researchers argued that immigration policy cannot be separated from wider economic issues such as housing affordability, salary levels and employment conditions. Without improvements in these areas, they suggested that Spain may struggle to retain workers over the long term.

Pressure grows on rental market and services

Housing affordability has become one of Spain’s most sensitive political and social issues in recent years. Rental prices have risen steadily across many major cities and coastal areas, while housing construction has not kept pace with demand in some regions. The study suggested that migrants are often particularly affected because many arrive without established support networks and frequently work in lower-paid sectors of the economy.

Several migrant support organisations have also raised concerns over overcrowded living conditions and difficulties accessing secure rental accommodation. In some areas, high tourism demand and the growth of short-term rentals have added further pressure to the housing market. At the same time, businesses in sectors already facing labour shortages have warned that difficulties retaining foreign workers could create additional staffing problems. Hospitality, agriculture and care services are among the industries most dependent on migrant labour in Spain.

Debate over migration policy expected to continue

The report is likely to add to ongoing political debate surrounding immigration, housing and economic policy in Spain. Successive governments have promoted immigration as part of the solution to labour shortages and demographic decline. However, the Funcas findings suggest that long-term integration may become increasingly difficult if living costs continue to rise faster than wages.

Researchers concluded that Spain’s challenge is no longer only attracting migrants, but ensuring conditions allow people to remain in the country over time. The report argues that improving access to housing, increasing employment stability and strengthening long-term economic opportunities will be essential if Spain wants immigration to remain a sustainable part of its economic and demographic future.

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Rockin’ Good Weekend On The Dance Floor

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Those on the lookout for a weekend on the dance floor can find perfect excuses to spend time partying and dancing thanks to two gigs organised at La Cochera this weekend. Everyone looks forward to these occasions because they combine the best in live rock music with friendly atmospheres that encourage partying until late.

Turkish Gang opens proceedings on Friday

Local favourites Turkish Gang are bringing their trademark energy to the venue from 11.30pm on Friday, May 15. These guys specialise in turning familiar rock, reggae and funk songs into irresistible foot-tappers that keep crowds moving until late into the night. Quality musicianship combined with fun stage presence will guarantee every set delivers memorable moments for revellers of all ages.

Previous performances by Turkish Gang have always left audiences wanting more with their rocking approach to cover versions.

Not Yet keeps the dance floor energy on Saturday

Not Yet appears at midnight on Saturday, May sixteen to continue the party atmosphere. This cover band focuses on English rock and pop tracks ranging from 1950s classics right up to recent favourites. Crowds can look forward to a non-stop mix of timeless hits and contemporary numbers designed specifically to fill the dance floor from start to finish. Everyone receives opportunities to sing along and move to rhythms that cover decades of popular music history.

Live music bringing the community together in La Herradura

Such live performances create excellent chances for everyone to gather in one place and enjoy shared entertainment. Gig-goers often discover new favourites among the song selections while making connections with fellow music enthusiasts.

La Cochera is on Paseo Andrés Segovia 45 in La Herradura. Just follow your ears.

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Spain Blackout Compensation Explained

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Consumers affected by Spain’s 2025 blackout may be entitled to compensation on their electricity bills. Credit : Eduardo Frederiksen, Shutterstock

Thousands of households affected by the massive power outage that hit Spain and the Iberian Peninsula on April 28, 2025 may be entitled to compensation on their electricity bills, but many customers say they still have not seen any discount applied months later.

Consumer association FACUA has now launched a campaign encouraging affected users to formally claim the money they believe electricity distributors should already have credited automatically.

The organisation argues that Spanish regulations require compensation when power cuts exceed certain service quality limits and says some consumers could also claim additional compensation if companies fail to respond within the legal deadline.

For many households that spent hours without electricity during the blackout, the issue is now turning into a battle over who should pay for the disruption and whether electricity companies are complying with their obligations.

Who can claim compensation after the Spain blackout

According to FACUA, the campaign is aimed at electricity customers who lost supply during the major blackout and have not received any reduction on their bill linked to the interruption.

The claims are directed at electricity distributors rather than energy suppliers. In Spain, the distributor is the company responsible for maintaining and operating the electricity network in each area.

FACUA says the compensation system is already covered under Spanish legislation.

The association points to Royal Decree 1955/2000, which establishes that distributors must apply discounts when electricity supply continuity standards are not met.

The regulation also makes clear that distributors remain responsible for quality indicators linked to their networks, even if they later try to recover costs from other operators involved in the incident.

FACUA argues that many customers should not have needed to request the discounts manually because the reductions were supposed to appear automatically once service thresholds were exceeded.

The organisation has already filed complaints with Spain’s National Commission on Markets and Competition against several distributors including i-DE Iberdrola, UFD Naturgy, e-Distribución, Viesgo Distribución and E-redes.

How much money households could receive

The compensation amount is not fixed and depends on several factors including the contracted electricity capacity, the length of the outage, the type of area where the property is located and the customer’s tariff conditions.

FACUA explains that the calculation uses the contracted kilowatt capacity multiplied by five times the average annual electricity price per kilowatt hour consumed.

That figure is then adjusted according to the number of hours without electricity, although the formula deducts a certain number of hours depending on whether the property is located in an urban, semi urban or rural area.

The association provided an example using a household with 4.4 kilowatts contracted, 12 hours without power and an average electricity price of €0.1491 per kilowatt hour.

According to FACUA’s calculation, that household would be entitled to around €22.96 before taxes, rising to approximately €25.38 once taxes are included.

For some customers the final amount could be higher or lower depending on their individual situation and the duration of the outage in their area.

While the compensation itself may not seem huge for every household, FACUA argues the principle matters because service interruptions affected large parts of Spain and disrupted daily life for millions of people.

Why some households could claim an additional €30

FACUA says there may also be another layer of compensation available in certain cases.

According to the organisation, if the distributor fails to answer the customer’s complaint within five working days, users with contracts below 15 kilowatts may be entitled to additional compensation.

The amount established under the regulation is €30.050605 or 10 per cent of the first full electricity bill, depending on which figure applies.

That possibility has drawn fresh attention because many customers claim they still have not received clear explanations from electricity companies regarding the blackout and possible compensation.

FACUA has published a template letter that consumers can complete and send directly to their distributor. The document asks the company to confirm whether the outage was officially recorded for supply quality purposes, whether the legal service limits were exceeded and whether compensation will be included on the next bill.

Consumers are also asked to include personal details, identification information, their supply contract reference and the CUPS code linked to the affected property.

The blackout is still raising questions months later

The April 2025 outage became one of the most disruptive electricity incidents affecting Spain in recent years.

Beyond the immediate chaos caused by the loss of power, the blackout has continued generating political, regulatory and consumer pressure as questions remain over responsibility, infrastructure resilience and compensation. For affected households, however, the issue has now become much more practical.

Many simply want to know whether they are legally owed money and how to claim it. And with FACUA now publicly encouraging consumers to take action, electricity distributors could soon face a wave of new complaints from customers checking their bills more closely than before.

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Foreign Income And Investments: Common Mistakes In Spanish Tax Returns

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Taxadora.com works with clients to ensure their Spanish tax returns are complete and accurate. Credit: Lucigerma / Shutterstock

As Spain’s income tax season progresses, many foreign residents are now reviewing their Declaración de la Renta (IRPF). One of the most common issues at this stage is missing foreign income that does not appear in the draft return issued by the Spanish Tax Agency.

If you are tax resident in Spain, you are generally required to declare worldwide income – even if it has already been taxed abroad. This includes pensions, investment income, rental income and capital gains from outside Spain.

The 22,000-euro rule often does not apply

Some residents believe they are not required to submit a tax return because their income falls below the commonly referenced €22,000 employment threshold. However, this exemption normally applies only to income earned from a single Spanish employer.

Where foreign pensions, overseas investments or income from multiple sources exist, a return is often still required even at lower income levels. This is one of the most frequent misunderstandings among international residents.

Investment accounts abroad need attention

Many residents keep savings or investment accounts in their home country after relocating to Spain. Dividends, interest and capital gains from these accounts usually need to be declared in Spain once you become tax resident here.

Because these transactions are rarely pre-filled in the Spanish system, they are frequently overlooked. Reviewing annual statements from foreign banks or brokers is therefore an important step before confirming your return.

Property sales outside Spain must also be reported

If you sell property abroad while living in Spain as a tax resident, the gain generally needs to be declared in Spain as well. In most cases, tax paid abroad can be credited to avoid double taxation, but the reporting obligation still applies.

Inheritance, however, is normally taxed separately under Spain’s inheritance tax rules and is not included in the annual income tax return.

Foreign pensions often require clarification

Pensions from the UK, United States, the Netherlands, Scandinavia and other European countries are another area where confusion frequently arises. Even when tax has already been deducted at source abroad, the income often still needs to be reported in Spain depending on the pension type and the applicable tax treaty.

Understanding how different pension categories are treated can significantly affect the final tax result.

Professional guidance can prevent later corrections

Correctly reporting cross-border income is often the most complex part of the Spanish tax return. Reviewing your situation before submitting your declaration helps avoid adjustments, penalties or administrative complications later.

Taxadora.com works with clients from the UK, the United States, the Netherlands, Sweden and other European countries each year to ensure their Spanish tax returns are complete and accurate.

Learn more at www.taxadora.com/taxes-for-residents-in-spain/

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