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Pay-as-you-go: Drivers in Spain may have to pay extra and foot the bill for road repairs

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With roads up and down Spain crumbling into pothole hell, one repair-funding suggestion on the table would involve charging drivers extra for the upkeep.

The association SEOPAN, which represents major construction and infrastructure firms, is openly advocating for a fundamental change in Spain’s current financial model. Their idea is to implement a pay-per-use system as a way of offering a guarantee to the road network’s maintenance without raising general taxation or draining resources from other essential public services.

Concrete figures accompany this audacious pitch. Average costs for motorists would be around €111 per year under a distance-based pricing system. Estimates suggest the scheme could generate a staggering €43.26 billion over a decade. Such a massive revenue stream would provide the capital needed to fix deteriorating tarmac, drive ecological transitions, and modernise digital infrastructure across the country. As well, around 2,680 councils would benefit from a projected €4.1 billion windfall.

Maintenance pressures and expiring contracts

The urgency for change comes from a tightening legislative calendar. December 2026 is crunch time for the government and drivers all over Spain, as it sees the conclusion of ten major motorway concession contracts originally awarded in 2007. Once these agreements end, the central authorities must assume direct responsibility for maintaining these 993 kilometres of road, and there is currently no one in line to take on the work. Costs for such upkeep average roughly €80,000 per kilometre, placing immense strain on already stretched public accounts.

Industry experts warn that the traditional contract model faces a bleak future. Public contracts for works concessions totalled a mere €2.218 billion in 2025, representing less than two per cent of all public procurement. This decline follows a long-term trend; since 2015 such contracts have plummeted by 84 per cent. Almost one in five bids for contracts now ends in failure, with companies either withdrawing or refusing to bid due to the financial risks.

Investment gaps and regulatory reform

Alarming data shows that 2024 investment levels reached barely half of the amounts seen in 2009, which goes a long way to explain the current state of the roads in Spain. Vital sectors like transport and water management have all seen their share of total public spending drop from 3.9 per cent in 2008 to just 1.7 per cent recently. SEOPAN has responded by submitting a technical reform proposal for public procurement laws to the government. Stability and legal clarity remain the primary goals, with the hope to reduce costly litigation for both the state and private firms.

Julián Núñez, president of the association, says that moving away from chronic underfunding is vital for future prosperity. Closer collaboration between public and private sectors must underpin this new investment drive. Updating contract laws will improve practical application and ensure that projects meet strict budgets and deadlines. External economic pressures, particularly inflation caused by Middle Eastern instability, make these reforms even more pressing for the national economy.

6 drink rule.

Spain’s 6 drink rule remains in 2026, tourists face tougher crackdowns and fines up to €3,000 

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All inclusive resorts enforce the rule in some areas of Spain
Credit: Svetlyachock/shutterstock

Flights and hotels are getting booked up and excitement builds for the summer, but holidaymakers heading to Spain in 2026 are being warned. The “6 drink rule” is still being enforced and now with tougher crackdowns, here is all you need to know to avoid a fine of up to €3,000. 

Where the rule applies (and where it doesn’t)

The rule limits guests at certain all-inclusive hotels to six alcoholic drinks per day, usually split between lunch and dinner. It was introduced originally to curb excessive drinking which led to disruptive tourism.

To note, this is not a nationwide law. The restriction applies mainly in specific areas of the Balearic Islands, including parts of Mallorca and Ibiza, where authorities have targeted so-called “party tourism.”

The six-drink limit is enforced only in designated tourist zones under regional regulations. Visitors elsewhere in Spain, including mainland destinations like Barcelona, Madrid, or the Costa del Sol are not subject to this rule.

Many travellers mistakenly believe the entire country enforces the same restriction, but the reality is enforcement is actually very localised and depends on the individual regional policy.

Other alcohol related laws to follow including public drinking

Firstly there is the six-drink rule, but there are also bans and limits in other areas around alcohol

Some parts of Spain has – 

  • Strict bans on alcohol sales to minors
  • Greater control over alcohol advertising
  • Limits on availability in certain public settings
  • “Botellón”, which is drinking alcohol in public spaces.

Local authorities can issue fines for drinking in streets, beaches, or parks, particularly in busy tourist areas. Rules vary by location and should be checked as enforcement has become more visible in recent years.

Why the restrictions

Spanish authorities introduced these measures to improve tourism quality and reduce anti-social behaviour. Popular resort areas had seen rising complaints about noise, public drunkenness, and safety concerns. Recently there has been a rise in alcohol related accidents in holiday resorts

By limiting alcohol consumption in all-inclusive packages and banning aggressive drink promotions, officials aim to shift the focus from cheap party holidays to more sustainable tourism.

Ensure you get it right

To stay safe and within the rules, check whether your destination falls under the six-drink rule, avoid drinking in public unless clearly permitted, don’t expect unlimited alcohol in all-inclusive deals and follow local signage and police guidance. 

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Spain Tax Return: Home Insurance Deduction

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Some homeowners in Spain can deduct part of their home insurance in the 2025 tax return Credit : Zhanna Hapanovich, Shutterstock

If you are getting ready to submit your tax return in Spain, there is one detail that could quietly reduce what you pay. From April 8, when the 2025 income tax campaign opens, some homeowners will be able to deduct part of their home insurance. The catch is that not everyone qualifies, and many people miss it simply because they assume it does not apply to them.

This is not a new benefit, but it is one that still catches people out every year. If you bought your home under certain conditions and still have a mortgage, there is a good chance you could be eligible without even realising it.

Who can actually claim the home insurance deduction

The first thing that matters is when you bought your home. This deduction is linked to older tax rules that still apply to properties purchased before January 1, 2013. If your home was bought after that date, this specific benefit will not apply, even if you have a mortgage and insurance in place.

The second condition is just as important. Your home insurance must be connected to an active mortgage, and in most cases, it needs to have been arranged with the same bank that granted the loan.

For many homeowners, that will sound familiar. When taking out a mortgage, banks often require insurance as part of the agreement. That is exactly the situation where this deduction comes into play.

But having insurance on its own is not enough. It has to be tied to the mortgage from the beginning.

Why many homeowners overlook this deduction

Every year, thousands of people go through the same routine. They open their draft tax return, check the main figures, and accept it without making changes. It feels easier and quicker, especially if nothing obvious looks wrong.

The problem is that the draft does not always include everything. Some deductions, particularly those linked to older rules, can be missing. Others may not be calculated correctly because the system does not have all the necessary details.

That is why tax advisers often say the same thing. Do not accept the draft without checking it carefully.

This home insurance deduction is a good example. It is easy to overlook, especially if you have had the same mortgage for years and do not think about it anymore.

What part of your insurance you can deduct

Even if you meet the conditions, there is another point that often causes confusion. You cannot deduct the full cost of your home insurance.

Only the part that is directly linked to the mortgage can be included in your tax return. If your policy includes extra coverage, such as protection for valuables or optional services, that portion does not count.

In practice, this means you may need to look closely at your insurance documents. Some policies clearly separate the different elements. Others bundle everything together, which makes it harder to identify the exact amount that can be deducted.

If you are unsure, it is worth contacting your bank or insurer. A quick check could help you avoid mistakes and make sure you claim what you are entitled to.

When the 2025 tax campaign begins in Spain

The timeline is already underway. The 2025 income tax campaign opened on April 8, and taxpayers can now file their returns online. As in previous years, the process runs over several weeks, with different options available depending on your situation.

For many people, the first step is to review the draft provided by the tax authorities. That is where it is worth slowing down and checking the details carefully.

Mortgage information, insurance payments and any deductions linked to your home should all be reviewed before confirming the return. Taking a bit more time at this stage can still make a difference.

A small detail that can reduce your tax bill

For most homeowners, this deduction will not lead to huge savings. But that does not mean it should be ignored.

Tax returns are built on small adjustments. One deduction on its own may seem minor, but combined with others, it can change the final outcome.

For those who bought their home before 2013 and still have a mortgage, this is one of those details that is easy to miss but worth checking.

It is also one of the few remaining benefits linked to the old rules on primary residence investment, which no longer apply to newer buyers.

That is why it still matters.

Before you submit your tax return, take a second look

If you are planning to file your return as soon as the campaign opens, it may be worth pausing for a moment. Check when you bought your home. Look at your mortgage. Review your insurance.

If everything lines up, you could be entitled to a deduction that is not immediately obvious. And if you skip that step, you may end up paying more than you need to.

In a process that many people rush through every year, this is one detail that deserves a closer look.

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Rents Vs. Reality: Why 50% Of Spanish Men Under 35 Are Still Living With Parents

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Many adults in Spain remain living with their parents, often relying on family support as housing costs rise Credit: Shutterstock/CandyRetriever

New data from Spain’s National Statistics Institute, the Instituto Nacional de Estadística, shows that around two in three people aged 18 to 34 are still living with their parents, highlighting the scale of the country’s housing challenge. The situation is particularly visible among those in their late twenties and early thirties, many of whom remain at home due to rising housing costs and limited purchasing power.

With the average age of leaving home now around 30, Spain remains well above the European Union average of approximately 26, according to Eurostat. Analysts point to a combination of high property prices, increasing rental costs and relatively low wages as the main barriers preventing young adults from achieving independence.

Why are young people unable to leave home in Spain?

The data points to a structural issue rather than a temporary trend. Only around 15 per cent of young people in Spain have managed to live independently, showing how limited access to housing has become. Even among those with stable jobs, many still cannot afford to live alone.

Research from institutions such as the La Caixa Foundation highlights that low salaries and precarious employment are key factors preventing young people from accessing housing. This is not a new issue, but it has intensified over time. Earlier data showed significantly lower figures, meaning the current situation represents a sharp deterioration rather than a stable pattern.

How Spain compares with the rest of Europe

Spain stands out even within the European context. Across the European Union, young people leave home at an average age of around 26 years, according to Eurostat.

In Spain, that age rises to around 30 years, one of the highest in Europe. The proportion of young adults living with their parents is also significantly higher than the European average. While around 48 per cent of young Europeans live at home, the figure in Spain has exceeded 60 per cent in recent years and continues to rise.

This places Spain closer to southern and eastern European countries such as Greece or Croatia, where similar housing pressures exist, and far from northern countries like Denmark or Sweden, where fewer than a quarter of young adults remain in the family home.

What this means for the economy and society

The impact goes far beyond housing. Delays in leaving home affect everything from career mobility to family formation. Young people are postponing major life decisions, including starting families or buying property, which has long-term consequences for economic growth and demographic trends.

There is also a growing divide between those who can rely on family support and those who cannot. For many, living at home is no longer a choice but a necessity. At the same time, the housing market itself is becoming increasingly competitive. In 2025 alone, more than 2 million people searched for housing without success, highlighting the scale of the problem.

A generation under pressure

While headlines often frame the issue in dramatic terms, the data suggests a more complex reality. This is not simply a generation unwilling to leave home, but one facing structural barriers that previous generations did not encounter at the same scale.

With housing affordability still under pressure and wages struggling to keep pace, the trend is unlikely to reverse quickly. For many young adults in Spain, independence is no longer just a milestone. It has become an increasingly difficult goal to reach.

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