A NEW survey has revealed a worrying trend among Spanish consumers: growing pessimism around housing and employment.

According to the inaugural Termometro 5D consumer confidence report, compiled by research firm 40dB for Cinco Dias and El Pais, nearly half of Spaniards believe it is now more difficult to buy a home than it was six months ago. 

With soaring property prices and stagnant wages, confidence in the housing market has slumped to just 30.1 points on a 100-point scale – placing it on the edge of what researchers classify as ‘severe pessimism.’

READ MORE: Good news for home buyers in Spain’s Valencia as property transfer tax slashed

The index, based on 6,000 interviews conducted between January and March, measures sentiment across five key areas: consumption, investment, saving, employment, and housing.

While the overall 5D Economic Climate Index remains stable at 46.1 points, housing stands out as the weakest link in the national mood.

Nearly 50% of those surveyed said fewer people in their social circles could afford to buy a home compared to half a year ago. 

Only 9.4% reported seeing more people able to do so. 

The data reflects a growing disconnect between income levels and property costs, with the cost of housing now consuming nearly 40% of an average salary, according to the Bank of Spain – its highest level in over a decade.

This sentiment emerges despite relative stability in everyday consumer behaviour. 

Spaniards are largely maintaining their spending on groceries, dining out, and travel. 

For instance, less than 10% said they plan to cut back on olive oil or fresh fish purchases.

However, when asked about larger financial decisions – particularly car purchases and property investment – the mood turns noticeably bleak. 

Only 10% said they intend to buy a vehicle in the coming months, and investment confidence remained modest at 47.1 points.

The job market also registered anxiety. Despite record levels of employment affiliation and the lowest unemployment in 15 years, more than a third of respondents believed joblessness was on the rise. 

The employment index came in at 42.5 points, showing moderate pessimism, particularly among younger people and those struggling to make ends meet.

The broader context helps explain these worries. At the time of the survey, geopolitical instability was mounting. 

The US had begun ramping up tariffs, setting off a global trade dispute that spooked financial markets and deepened public concern. 

Though these measures had not yet reached their peak, tensions were already rippling through Europe.

While Spain’s economic growth prospects currently outpace the eurozone average, the long-term impact of global uncertainty, housing unaffordability, and persistent inflation remains unclear.

A BOLD new proposal could soon transform the way Europeans travel across the continent.

Unveiled by Copenhagen-based think tank 21st Europe, Starline is a visionary plan to connect 39 cities in Europe with a vast high-speed rail network – one that runs with the simplicity and regularity of a metro system.

Spanning 22,000 kilometres, the network aims to link countries across the whole of Europe, with trains operating at speeds of 300-400 km/h.

READ MORE: Feasibility study contract for Spain’s Costa del Sol train set to be awarded: Project will take 18 months to decide if it can be built

That would slash travel times across the continent – turning current day-long journeys into seamless, cross-border commutes.

“A truly integrated rail system is no longer just a matter of convenience; it’s a strategic necessity for Europe’s resilience in the 21st century,” said 21st Europe in a statement.

While the European Union already supports the Trans-European Transport Network (TEN-T) to improve continental connections, Starline’s backers believe current efforts fall short of what’s needed. 

“Despite public demand, cross-border travel remains fragmented, slow, and expensive,” the think tank argues, pointing to inconsistent ticketing, outdated stations, and varying train standards across countries.

Starline wants to change all that. Built on both new and existing infrastructure, its unified design would offer a metro-like experience.

The trains will be easily identified by their deep blue livery, a nod to the EU flag, complete with star detailing along the sides.

Inside, passengers would find a modern layout without traditional class divisions. 

Instead, carriages will feature quiet zones for working, family-friendly areas, cafes, and comfortable open-plan seating.

At full speed, Starline could cut travel times dramatically, and the environmental payoff could be just as significant. 

With transportation accounting for nearly 29% of the EU’s greenhouse gas emissions, Starline aims to curb short-haul flights – reducing aviation’s footprint by up to 80%. 

“A bold shift to high-speed rail might be Europe’s best chance to meet its 2050 net-zero goals while ensuring mobility remains both fast and green,” said the organisation.

Starline’s ambition extends beyond trains themselves. The network plans to build new stations just outside major cities, designed as cultural and social hubs. 

These spaces would go beyond platforms and ticket machines, offering restaurants, concert halls, museums, sports venues, and public event areas – making them destinations in their own right.

“Railways were always about more than transport,” said 21st Europe founder Kaave Pour. “They shaped economies, cultures, even national identities. Today, we need them to do the same for Europe.”

Under the proposal, the network would be publicly funded and operated by approved national rail companies. 

A new European Rail Authority (ERA) would oversee operations, ensuring interoperability, harmonised labour agreements, and shared safety regulations across borders.

Tickets would be available through a unified, open platform – much like air travel today – with AI-driven security at stations and pricing that undercuts both short-haul flights and current rail fares.

Starline is still in the concept phase, and its rollout would take decades, but 21st Europe insists this is a blueprint for real change. 

The think tank estimates that, like China’s high-speed rail revolution, Starline could generate millions of jobs and contribute significantly to urban GDP growth.

“Now, we begin building the network to push for real change, bringing together policymakers, designers, and industry leaders to turn vision into action,” the group said.

Foreign professionals moving to Spain could be eligible for a flat 24% income tax rate for up to six years – thanks to the Beckham Law.

The special tax regime was launched in 2005, and allows certain expats to be taxed as non-residents while living and working in Spain.

It’s named after footballer David Beckham, who became one of the first high-profile beneficiaries after joining Real Madrid.

So what’s the Beckham Law and why does it matter?

The Beckham Law (Royal Decree 687/2005) was created to attract foreign talent to Spain by offering a reduced and simplified income tax rate.

It applies to employees, remote workers, entrepreneurs, investors, athletes, and other qualified professionals who relocate to Spain. Recent updates to the law have removed the eligibility for most professional athletes – while extending the eligibility pathways for remote workers.

Here are the four main benefits:

• A fixed 24% tax rate on Spanish-source income up to €600,000
• A fixed 47% rate on any Spanish-source income above €600,000
• No tax at all on foreign-source income—including overseas capital gains, dividends, or rental properties (note: employment income from abroad may still be partially taxed, depending on double taxation treaties)
• A six-year duration, covering the year of arrival and five subsequent tax years
• Spouse and children under 25 may also benefit, as long as they generate income in Spain

This compares favourably with Spain’s progressive income tax system for residents, where tax rates rise with income:

1. Up to €12,450 – 19%
2. €12,450 to €20,200 – 24%
3. €20,200 to €35,200 – 30%
4. €35,200 to €60,000 – 37%
5. €60,000 to €300,000 – 45%
6. Above €300,000 – 47% (and even 54% in some regions, like Valencia)

Let’s take an example of someone earning €80,000 in taxable income (i.e. net profit before tax).

Under the standard tax system, your total bill (before deductions) would be around €26,901.50. But under the Beckham Law’s flat 24% rate, you’d pay just €19,200 – a saving of €7,701.50.

At higher income levels, the difference grows significantly.

On €500,000 of taxable income, a resident might pay around €219,901.50. But under the Beckham regime, you’d owe only €120,000 – saving almost €100,000.

These tax savings apply only to income earned in Spain. Foreign-sourced income is excluded from Spanish taxation under the regime.

The 5 eligibility pathways

To qualify, your situation must match one of five eligibility pathways:

1. You’re posted or hired by a company in Spain – either through local recruitment or an international transfer.
2. You’re a remote worker who moves to Spain and continues working for a foreign employer (the 2023 Startup Law expanded eligibility to digital nomads).
3. You offer services to Spanish start-ups or R&D activities, and at least 40% of your income comes from those engagements.
4. You become a company administrator in Spain and don’t own more than 25% of a business classified as asset-managing. If the business isn’t asset-managing, you may hold a larger share.
5. You’re a family member (spouse or child under 25) of a main applicant – which means your income can also benefit from the fixed tax rate.

In addition to one of the above, you must meet four more requirements:

1. You must not have been a Spanish tax resident in the last 5 years.
2. Your main income must come from work performed in Spain. It doesn’t matter if the employer is Spanish or foreign.
3. If you’re employed by a Spanish company, you can’t have an existing employment relationship with them. The move must represent a new or separate engagement.
4. You must apply within 6 months of registering with Spanish Social Security or from your official move date – whichever is earlier.

If any of these criteria aren’t met, your application may be rejected.

Once the six-year period ends, if you remain a tax resident in Spain, you’ll be transferred to the standard resident tax regime.

That means your worldwide income becomes taxable in Spain, and your income generated in Spain is subject to progressive tax bands. You may however qualify for certain deductions (e.g., for dependents, disabilities, or housing expenses) which are unavailable under the Beckham regime

Important note: Even under the Beckham Law, capital gains and investment income from Spanish sources (such as Spanish property sales or dividends from Spanish companies) are taxed at standard rates ranging from 19% to 28%.

So while it’s a generous scheme, it’s not a free-for-all.

You should also consider the opportunity cost of missing out on resident deductions while in the Beckham scheme.

How to apply for the Beckham Law

Applications are made via Spain’s Tax Agency (Agencia Tributaria / AEAT). You must submit your application within 6 months of the start of your work activity or your registration with Spanish Social Security.

You can start the process online here: AEAT Beckham Law Application

You’ll need to prepare the following documents:

• A signed employment contract showing you’ve been hired or transferred to Spain
• Proof of registration with Spanish Social Security (“Alta”)
• A current employment verification letter
• A certificate of previous tax residency (to prove you were not a tax resident in Spain during the past 5 years)
• Your NIE number (Número de Identidad de Extranjero)

This is a powerful but complex tax regime—so it’s worth consulting with a tax advisor who specialises in international or expat taxation.

They can help confirm your eligibility, estimate your potential savings, and make sure your application is accurate and timely.