Business over Tapas
A digest of this week's Spanish financial, political and social news aimed primarily at Foreign Property Owners:
Prepared by Lenox Napier. Consultant: José Antonio Sierra
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February 13 2025 Nº 570
(Links are in grey for some reason)
Opinion:
In the bad old days, the village postman wasn’t much good with foreign names (although he liked to collect stamps, and would often remove them with a certain amount of bureaucratic relish from the corner of the envelope). It was no big deal: in those times, the twenty pound notes tenderly send by my dad’s sister would be folded deep inside within a sheet of carbon paper to fool the early X-Ray machines in Madrid.
I’d be sent to Old Martín with instruction to collect all the foreigners’ letters – at least those of the foreigners who were sat in the village square, drinking and gossiping.
It’s not as bad as it sounds.
The correos opened in those day at the reasonable hour of 3.00pm.
Anyone who wasn’t in the square drinking naturally risked losing his twenty quid.
(To explain: In the late sixties, the British only allowed one to take out fifty, later sixty, pounds a year on holiday, so we would all head to Gibraltar for a top-up until General Franco closed the border.)
It’s a far cry from today. Now we don’t know each other – there’re too many of us – and the post office wouldn’t give out the mail to some spotty foreign kid anyway. Now, it’s either delivered by a person dressed in a yellow uniform driving an equally buff-coloured three-wheel motorcycle, or its placed in a tin post-box and you come along during opening hours to see what – if anything – is new.
As for the folded twenty pound notes, now the British Government lets you take abroad as much as you like: to spend freely on rounds of brandy, weekends in a Parador or buying a second hand car with no MOT and the steering wheel on the wrong end of the dashboard.
Before they took to delivering the mail, I too had a post box: un apartado. Nº 35 it was. Then they started charging a heavy sum for its rental, insisted that each person who used the PO Box would have to pay separately for the same number, and they introduced (free) house deliveries anyway.
It was an easy call, although any letters which later arrived at my Nº 35 were solemnly returned to sender, unread.
I’m sure that as the result of the Person Unknown stamp on the repatriated item, the editors of my old school magazine were convinced that I had precipitously joined the list of ‘the dearly departed’.
Which, on the bright side, saved me continuing with my modest annual subscription.
The world moved on, and someone invented emails, which took the wind out of the sails of the Spanish postal system. Then along came DHL and their parcel-totting competitors, plus those fellows who whizz through the city traffic on their bicycles with an urgent message stuffed down their Velcro pouch.
The post office was on the ropes.
So it invented in own high-speed parcel delivery system, operated as a bank for a while, started to sell books by right-wing authors (have a look next time), sent and received money abroad, sold stickers, lottery coupons and magazines and generally moved, as they say, forward.
The postage stamps were another change. Instead of a stamp which one could lick and affix, the new ones have peel-off backs. Or, and more usually, they print out an inelegant sticky strip with numbers and bar-codes, and press it onto your envelope – as often as not hiding part of the first line of the address.
So today, I went to post a letter to foreign parts and said that I wanted a stamp rather than an adhesive label, if it was all the same to them.
There was a fuss, but eventually the clerk played ball and found two stamps. The first had a peel-off back, the second did not. It has to be glued on, she said, as – not finding the glue-stick – she sellotaped it onto the envelope.
But let me leave on a positive note.
I always used to joke that when I grew up, they would put me on a postage stamp. Now, it appears, you can take along a photo to the correos and they will run you up a set of 24 street-legal stamps, with a sticky back, and bearing your smiling image.
I think I could have some fun
with that.
…...
Housing:
There are between 350,000 and
400,000 tourist apartments (available on the Internet) in Spain. DataDista brings
you the breakdown by municipality (Mojácar, for example, has 812 of them –
around 10% of the total number of homes).
El Mundo
brings us an interview with Jaime Rodríguez de Santiago, the CEO of Airbnb: ‘"I am concerned that
Sánchez criticises us and ignores the housing problems that are his
responsibility". The head of the platform, which has been singled out by
all administrations for uncontrolled expansion of tourist apartments, warns
that the Spanish regulation in this sector is "broadly worded"’. One
Q&A: ‘Does the almost 400,000 tourist apartments operating in Spain,
according to the INE, seem like a
reasonable figure to you?’ Rodriguez de Santiago answers: ‘Yes, quite reasonable’.
‘Two million tourists went "missing" in the Balearics in 2024. They didn´t stay in holiday apartments or hotels’ The Majorca Daily Bulletin answers with: ‘So where did they stay? One of the reasons put forward is that they all stayed with friends but hoteliers suspect that they rented illegal holiday apartments and villas. These means that an estimated two million tourists didn´t pay the tourist tax, the controversial holiday surcharge. What is more, an estimated one million tourists stayed in their own homes and therefore they didn´t pay the surcharge either…’ From the same source: ‘Tourist overcrowding: 7,000 apartments being rented out illegally in the Balearics. The so-called illegal offer has been blamed for tourist overcrowding’.
Hacienda
will tax (or fine) those who own a second home (or more) which they aren’t
using as a permanent residence says El
Cronista here.
‘Salto de Castro, the
abandoned town in Zamora that has been bought by a US businessman: “His
intention is to build a rural tourist complex”. The town, built by Iberdrola in the 1940s for the workers
of the Castro dam, has been sold for more than 300,000 euros’. Infobae has the story here.
A commercial presentation
from Investropa here:
‘Seventeen tips for foreigners buying property in Spain in 2025’.
Idealista has
‘Ten mistakes landlords make when renting out a property. If you're thinking of
renting out your property, knowing these ten questions can save you numerous
problems in the long term’.
Murcia: ‘Spain's Florida or a
Land of Broken Dreams?’ A YouTube video (with subtitles in Spanish). ‘This video
looks at the history of the Residential Tourism Property industry in the region
of Murcia. It starts by explaining the history of the industry, from the 1960’s
through to the credit crunch and collapse of the market in the late 2000’s
paying special attention to the developer ‘Polaris
World’…’ (Thanks to Jake)
An article at Infobae warns against the negatives about moving to Spain for American
retirees. These include the ‘…high economic requirements to obtain residency
and what many perceive as a complex bureaucracy’.
…...
Tourism:
Are too many tourists a good
thing?
From Enrique Dans here:
‘An open letter to the Spanish tourist board’ (in English).
From The Express (January 15) here:
‘Huge blow to anti-tourism protesters as Spain braces for another record-year
for visitors. Spain is preparing for even more tourists flocking to the country
in 2025 after a record-breaking year, despite tens of thousands of people
taking to the streets to protest against over-tourism last year’.
‘Málaga is approaching its
limit and acknowledges tourist saturation for the first time. A municipal
document highlights the negative consequences for the city of mass tourism and
the City Council plans to create seven routes beyond the historic centre to
distribute visitors’ says El País (paywall) here.
From TTW here:
‘2025 new travel rules: Europe, UK and global airports bring new ETIAS, APD Hikes, and cruise travel changes’.
…...
Finance:
The minimum wage (SMI) goes
up to 1,184 euros gross per month (in Spain, you get fourteen payments per
year). Unfortunately, this makes
those workers liable for income tax.
From The Portugal Resident here: ‘Iberian miracle amazes Europe: Spain and Portugal become engine of euro-zone economy. But economists warn it’s not enough, on its own, to avoid recession. The Spanish newspaper El Economista has described the “Iberian miracle” which has saved Europe from recession… so far.
With the economies of France
and Germany in the doldrums, Spain and Portugal were responsible for 50% of the
euro-zone’s growth in the last quarter. It’s a surprise that is intriguing
economists. But according to investment bank JP Morgan, the dynamic is not sustainable: unless Germany and
France start recovering, Europe is heading for recession. “Probably never
before has the Iberian Peninsula been so important in keeping the euro economy
afloat”, it says…’
From the BBC News here:
‘How Spain's economy became the envy of Europe’, with a report from Guy
Hedgecoe. We read: ‘…"The Spanish model is successful because it is a
balanced model, and this is what guarantees the sustainability of growth,"
says Carlos Cuerpo, the business minister in the Socialist-led coalition
government. He points out that Spain was responsible for 40% of euro-zone
growth last year. Although he underlined the importance of tourism, Mr Cuerpo
also pointed to financial services, technology, and investment as factors which
have helped Spain bounce back from the depths of the pandemic, when GDP shrank
by 11% in one year…’ From The Express
here:
‘Spain’s economy is booming as the UK and the rest of Europe watches with envy.
Spain attracted one of the highest numbers of international tourists last year,
and its economic growth has left the UK and the rest of Europe in the dust’.
The Banco Santander reports profit of 12,574 million (+14%) in 2024 says
The Corner.
From elDiario.es here:
‘Big money is losing its desire to appear green. A battery of companies, banks
and investment funds are abandoning their climate commitments, justified by a
mixture of a political environment contrary to sustainability, desires for
greater profitability and a lack of negative consequences when eliminating them’.
How much money can you give
to a family member without paying taxes? Infobae
has the limits on undeclared transfers here.
According to current regulations in Spain, transfers involving a donation over
6,000€ must be declared for examination by Hacienda
(with 10,000€ and above having automatic tax implications).
‘¡Gracias amigos! Britain spends five billion (5,000 million) on
Spanish fruit and vegetables’ says the Majorca
Daily Bulletin here.
…...
Politics:
The
vote for the increase in pensions, public transport subsidies and aid for the DANA victims in Valencia finally went through on Wednesday (with some minor changes: this
was the second time around), with first the Junts and later the Partido Popular
agreeing to switch and support the passage. Vox alone continued to vote against
the ‘ómnibus’ decree.
‘Pedro
Sánchez announces that he will be firm and take the appropriate measures in
response to Trump's trade war. The President of the Government presents the National Food Strategy and urges
Europe to "show unity to respond to any eventuality"’. El Mundo
has the story here.
‘Vox justifies Trump's tariffs and the PP downplays them despite the impact on
Spain’ says Público here.
There was a meeting this past Saturday of Europe’s far-right leaders in Madrid. From Politico here: ‘Europe’s far-right leaders huddled in Madrid on Saturday as a show of force following Donald Trump’s re-election. On the menu? Scrapping green policy, battling Islam, taking down Brussels EU governance, migration, opposing gender and family diversity, and fighting “population replacement”’.
Sky News has ‘Trump-style victory the aim for Europe's far-right as leaders praise US president at Madrid conference. Mr Trump's victory had "changed the world in just a few weeks," said Hungarian Prime Minister Viktor Orban at a rally where other speakers condemned illegal immigration, leftists, migrant rescue NGOs, and "wokeism" to the delight of 2,000 flag-waving supporters’.
El Huff Post says ‘The event of the European Patriots alliance, chaired by Santiago Abascal in the capital of Spain, consisted of countless compliments and displays of recognition for the American president, attacks on "socialism, progressivism or environmentalism" and a clear message: "Make Europe Great Again"’.
The
Government is working on reducing the 40 hour week to 37.5. Directo al
Paladar weighs
in: ‘All the problems that hoteliers believe are caused by waiters working
2.5 hours less per week. The hotel and restaurant employers' association
estimates losses in the millions, problems finding workers and price increases’.
…...
Europe:
While
the European governments are adamant against
the plan to turn Gaza into a Riviera, Spain’s Vox sees Trump's proposal for
Gaza as "reasonable":
"The first signs of his policy in the area are good", they say.
El Mundo reports
that ‘China and EU move closer to cooperate in the face of Trump's threats:
"Beijing and Brussels need each other". The US president's tariff
threats have improved the perception of the always complex relations with the
Asian giant in the eyes of the Twenty-Seven’.
An
interesting video on YouTube here: ‘Why Spain is
Trump's biggest enemy in Europe’.
…...
Corruption:
The Government is about to
finally ban those irritating commercial calls made with mobile phone
numbers. I often get one – usually silent – until I say ¿Qué?, and then they ring off.
‘The Twitter and TikTok troll-farm
that spreads hatred against the AEMET
(Government weather bureau) and tries to make you oppose science: this is called
the “fine rain” strategy. How to stop the advance of conspiracy theorists and
denialists on social media? Experts are clear: you can only prevent, not cure’.
An item from Infobae here.
A notification apparently
from Endesa could
be a scam to find your banking details says 20Minutos. Always check from where the email comes from (Zimbabwe
in this case!).
The brother of Pedro Sánchez,
who has a modest role leading a musical department in the provincial government
of Badajoz, is another target of both the courts and the far-right crusaders at
Manos Limpias. David Sánchez Pérez-Castejón has now thrown in the towel and
quit his job says
El Mundo Deportivo.
‘The Supreme Court upholds the
corruption trial on former Junts president and Catalan Parlament speaker. Laura Borràs faces 4.5 years for splitting IT
contracts to avoid public tenders’ says Catalan
News here.
An email out of the blue from
someone I don’t know. He says how are you doing, I say fine, he says ‘I am sorry
for bothering you with this mail, I need you to get an Apple gift card for my
niece, it's her birthday today and I promised to get it for her, but I can't do
this now because I'm in the hospital. I have Arthritis in the knee and ankle
and all my effort purchasing it online proved abortive. Can you get it online
or from any shop around you for me? I'll reimburse you when I am back home’. I
say: please don’t try and scam me, Brother.
…...
Various:
The CIS pollsters report that almost half of Spain’s police and military forces vote for far-right parties. According to this compilation, 33% of the members of this sector opt for Vox, while 14% like Alvise Pérez's Se Acabó la Fiesta. NacioDigital (in Catalán) has the breakdown of votes by career.
The 21-storey Hotel
Algarrobico outside Carboneras (Almería), blocked in 2006 just as the builders
were putting on the final touches, is to
be expropriated and demolished, says the Government – probably this summer.
The cost of this demolition would probably be enough to provide for a new
hospital somewhere, but there you go. Returning the land: rock, scree and
shrub, is more important. Will it look like it did 25 years ago: another two
hundred metres of empty national park? Probably not. From elDiario.es, we
read that there are a lot of other hulks, ruins and illegal buildings all
over Spain (we can think of a few nearby). One day, they’ll be removed,
perhaps. Here,
we read about the murky background of the promoter of the ill-fated Carboneras hotel.
Only a Brit newspaper could ask – ‘Are British tourists really to blame for Spain’s housing crisis? Spain’s housing boom began in the 1960s’. Headline at The Independent here.
Sur in English
says
that ‘Spain's Directorate-General for Traffic (DGT) has stated that it will further reduce alcohol limits for
driving in 2025 – by three fifths! Fine and dandy if you live in the city, with
a bar downstairs to visit, but a bother if your nearest place is a twenty
minute walk (and perhaps a trifle longer returning home).
‘King Felipe slams Donald
Trump for removing Spanish language from the White House website and its social
media postings’ says The Olive Press
here.
Which are the most popular
new cars in Spain? El Órden Mundial says
that more Dacia Sanderos were sold in 2024 – with almost 33,000 – than the next
most popular cars, the Toyota Corolla and the Seat Ibiza (both at 22,000).
From El País in English here:
‘The recovered newsreels that recounted the Spanish Civil War in the US: ‘A
nation divided threatens to destroy itself’. A foundation is digitizing the
nearly 300 films that the Hearst Corporation recorded during the conflict and
were shown at the time in American movie theatres’. Find some of them at News Reels here. Later, here’s one I found on YouTube – Toledo scenes of the Civil
War in 1936 (silent).
Eye on Spain
has
‘The Knights Templar in Spain: Following the Trail of a Secret Order’.
…...
See Spain:
From El Confidencial here:
‘The unknown Romanesque jewel guarded by thirteen residents: a treasure recognised
by National Geographic. This
little-known corner of Guadalajara shelters an architectural treasure that has
captivated lovers of medieval art. Carabias, a district of Sigüenza, is home to
the church of San Salvador, a 13th century temple’.
The seven wonders of Ronda
(Málaga), with España Fascinante here.
…...
Finally:
Ricky Martin – Livin’ la Vida Loca on YouTube here.
