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Bono Digital: How to get Spain’s €240 home internet subsidy

The Spanish government has launched a €240 handout to help the most vulnerable pay their internet and phone bills. Here's everything you need to know, from who is eligible to how to apply.

Published: 27 September 2023 16:20 CEST
spain internet subsidy
To get Spain's 'bono digital', you will also need to present copies of documents and information such as NIE, residency card, tax returns, pay slips etc. (Photo by Loic VENANCE / AFP)

When the pandemic hit, it opened up the possibility for thousands across Spain to work remotely. However, it also highlighted a significant issue: the fact that thousands across the country don’t have a good internet connection with a sufficient data plan to fulfil their needs.

This issue doesn’t only affect workers. As children get older they need the internet more and more to complete their school work and do research for projects. Recent studies have found that students those who don’t have as much access to the internet are at a great disadvantage compared to their classmates who do. 

To help combat the effects of this, the Spanish government has launched a raft of measures and financial handouts to help people pay their internet and phone bills, referred to as el bono digital.

How does it work?

Each region in Spain is in charge of issuing the aid to those who need it. You will be able to get up to a maximum of €240 which is distributed throughout the year, meaning you can get €20 a month to help you pay your internet and phone bills.

The idea is that with this help, everyone should be able to afford access to 5G and broadband networks.

READ ALSO – EXPLAINED: Andalusia’s new €5,000 aid package for self-employed workers

 

Who is eligible?

Those who can benefit from the handout are those considered to be in a vulnerable situation. The exact definition of this, however, is set out by each region, meaning that it could be different, depending on where you live.  

For most regions, this includes those who receive the minimum vital income, those who earn below a certain amount, as well as other requisites.

As well as being in a financially vulnerable situation, you must be signed up to one of the phone and internet companies that have agreed to this scheme with the Ministry of Economic Affairs and Digital Transition.  

READ ALSO: The help that self-employed in Spain can apply for in 2023

You can find out which companies these are by looking at the Autonomous Registry of Operators-Collaborators. This again varies between each region. For example, if you live in Madrid, you must be signed up to either Lowi or O2. 

For now, you must live in one of the regions that has opened the registration process. These are Aragón, Navarra, La Rioja, Castilla-La Mancha, the Basque Country, Valencia, Cantabria, Madrid, the Balearic Islands, Murcia, Extremadura, Galicia and the Canary Islands.  

For all other regions – Andalusia, Catalonia, Castilla y León, Asturias – you must wait, as registration details haven’t yet been released.  

How do I apply?

If you meet the requirements set out by your region, you will need to fill out an application form. Each region has its own and we have listed the links for each one that is open below.  

Each region also has its own deadline for applying so you must look carefully and make sure you meet it. It’s worth noting that the deadline for some regions has already passed and applications are now closed.  

READ ALSO: 17 essential articles that will help you save lots of money in Spain

Unfortunately, the deadline has already passed for those in Valencia, Castilla-La Mancha and Extremadura however, many other regions have deadlines coming up in October, November and December.  

For each region, you will also need to present copies of documents and information such as NIE, residency card, tax returns, pay slips etc. 

Balearic Islands

Those who live in the Balearic Islands can find out more on the government website and the deadline for applying is September 30th 2023.

Madrid

Those in Madrid can apply on the following website and the deadline is October 31st 2023.  

Murcia

If you live in Murcia can find out more on the official website and have until November 30th 2023 to apply.   

Canary Islands

Those in the Canary Islands can apply by visiting this government site and have until October 3st, 2023. 

Galicia

If you live in Galicia you can find out more and apply on the official site. The deadline is November 15th 2023.

La Rioja

For La Rioja you can find out more and apply on the government site. You have until October 31st, 2023. 

Basque Country

In the Basque Country, you can find out about the requisites and apply on the following site. The deadline is 31st December 2023.  

Aragón

You can apply between November 18th and December 31st, 2023. Find out more on the government website. 

Navarra

If you live here, you can find more details on the official site and the deadline is November 30th 2023.  

Cantabria

If you live in Cantabria need to be quick as the deadline is September 29th, 2023 and you can apply on the following site. 

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TAXES

What’s the difference between Spain’s wealth tax and the solidarity tax?

High earners in Spain may be confused about the difference between the regular wealth tax and so-called temporary 'solidarity tax' on millionaires. Here are the main differences and what you need to know.

Published: 12 September 2024 11:44 CEST
What’s the difference between Spain’s wealth tax and the solidarity tax?

The super rich in Spain are generally subject to one of two headline taxes targeting wealth, depending on where they live. Although there are several smaller taxes they (and most people) also pay on top of those, today we’ll focus on the two big ones.

There’s the general wealth tax (known as el impuesto de patrimonio in Spanish) that is levied on net worth, and in recent years the Spanish government has also established the supposedly temporary (more on that below) ‘solidarity’ tax, which is known as the impuesto de solidaridad a las grandes fortunas and levied on the assets of millionaires.

You may also see it referred to as the ‘millionaire’s tax’ in Spanish media.

But what are the differences between the two? Who pays which one, and should you ever pay both?

READ ALSO: ‘Fewer Lamborghinis’: Spain’s PM aims to tax the super-rich more

Wealth tax

El impuesto de patrimonio – This is Spain’s standard wealth tax.

According to information from the Spanish treasury: “Wealth Tax is levied on the net wealth of individuals, i.e. all the assets and rights of economic content of which they are the owner, less any charges and encumbrances that reduce their value, as well as the debts and personal obligations for which the owner is liable.”

Generally speaking, people who are resident in Spain pay this tax, and those that at least have fiscal residency (spending at least 183 days here a year) meaning that Spain is one of the few countries who has a wealth tax on residents and non-residents alike.

Residents pay tax on all their wealth, whereas non-residents only pay it on any Spanish assets they have. 

Regional governments in Spain have the ability to set their own wealth taxes and create different deductions, therefore there is no one flat wealth tax rate across the whole country. Be sure to check your regional rules for a fuller picture of your tax obligations.

Generally speaking, however, it’s progressive and starts at 0.3 percent at the lower taxable bases, rising to 3.5 percent on fortunes over €10 million.

The Treasury also outlines some general criteria in the following situations:

  1. “Those who, in accordance with the regulations for this tax and once the appropriate deductions or rebates have been applied, owe money, or for the purposes of applying the first limit, it should be borne in mind that if the taxable base, determined in accordance with the tax rules, is equal to or less than the exempt minimum established, either generally at €700,000, or in the amount that the Autonomous Communities have approved for their residents in the exercise of their regulatory powers over the aforementioned exempt minimum, there will be no obligation to file a tax return.”

  2. “When the above does not apply, the value of their property or rights, determined in accordance with the tax regulations, is greater than €2,000,000. For the purposes of the application of this second limit, it includes all owned property and rights, whether or not they are exempt from the tax and calculated without considering any burdens or encumbrances that reduce their value or the personal obligations or debts for which the taxpayer is answerable.”

So, in short, if you have a taxable base of €700,000 or above (or whatever your regional base is) or property worth €2,000,000 or more, you’ll need to file a wealth tax return.

Solidarity tax

The other is Spain’s temporary tax on the super rich (impuesto de solidaridad a las grandes fortunas) which is usually referred to as the millionaire’s tax or solidarity tax. It’s a tax on people worth more than €3 million and it’s not a tax on income, but rather on assets and holdings.

All Spanish tax residents who have a net worth over €3 million must pay it. Be aware, it’s a tax on worldwide assets, not just what you own in Spain. It also applies to non-residents with Spanish assets above €3 million.

According to tax data, the millionaire’s tax targets just 12,010 payers, which represents barely 0.1 percent of the total taxpayer base in Spain. Unlike the normal wealth tax, Spain’s solidarity tax is levied on a national level. 

READ ALSO: Q&A: How does Spain’s solidarity tax on wealth work?

The tax is progressive, so you pay more tax the more wealth you have:

  • 0 percent for the first €3 million (the taxable base)
  • 1.7 percent between €3-€5 million
  • 2.1 percent between €5-€10 million
  • 3.5 percent for €10 million and above

It was introduced by the country’s left-wing coalition in 2022 in an attempt to help Spaniards weather the economic storm of the cost-of-living crisis. But as of September 2023, around a year after the tax measure was first brought in, the Spanish government reported that it had raised €623 million in revenue, a decent amount but considerably less than the initial projection of €1.5 billion. 

READ ALSO: How wealthy people in Spain are avoiding the millionaire tax

This seems to be because wealthy Spaniards and foreigners are finding creative ways to avoid paying it. This is mainly done through ‘donations’ in order to make the money non-taxable or to reduce the taxable base on paper.

Another method increasingly used by the wealthy seems to be setting up and putting money in venture capital or private equity firms.

According to Spain’s National Securities Market Commission, the creation of venture capital firms has grown by 38 percent since the government first announced the millionaire’s tax.

It was originally intended to be a temporary tax to combat the cost of living crisis, but noncommittal noises from the Spanish government in recent months suggest that it could well become permanent. 

READ ALSO: When will Spain’s millionaire tax be scrapped?

Double taxation?

As you now know, the solidarity tax is not the same as Spain’s annual wealth tax and according to tax professionals you should not have to pay the tax twice.

If you live in a region where you need to pay wealth tax, it will be deductible from the solidarity tax, but if you live in one of the two regions where you don’t pay wealth tax – Madrid or Andalusia, where it’s been abolished – you won’t be able to deduct any.

As is, the taxes an individual pays in the existing wealth taxes as calculated under local regional rules are deductible from what they need to pay for the Spain Solidarity Wealth Tax.

We at The Local Spain are not tax professionals. What we know, we have learned the hard way by researching and reading, but if you have any doubts about your particular situation, it’s always best to talk to a lawyer. 

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