Pensions increase

Contributory pensions will rise by 3.8 percent from January, while the minimum contributory pensions will increase by 6.9 percent. Pensions for widows with family responsibilities will increase by 14.1 percent from €905.9 currently up to €1,033.6 per month. Non-contributory income and the Minimum Living Income (IMV) will also increase by 6.9 percent.

This means that the average retirement pension will increase by €734 per year or €52 per month.

The Three Kings arrive 

On January 5th, the Three Kings will arrive in Spain, bringing with them stacks of presents to fill the shoes of Spanish children all over the country. Most cities in Spain hold Three Kings’ parades on the night of the 5th when the kings and their entourage bring elaborate costumes, music, sweets and floats to streets around the country.

January 6th, Epiphany Day or Día de Los Reyes is another public holiday in Spain, a time when families gather to open presents and enjoy more feasting. Most shops and public institutions will be closed on this day. 

READ ALSO: Why Spain loves the Three Kings more than Santa

January sales begin

After Reyes (Kings’ Day) the January sales officially begin in Spain. High street stores from the Inditex Group – Zara, Zara Home, Massimo Dutti, Pull & Bear, Bershka, Stradivarius and Oysho will begin their sales on Sunday, January 7th. 

Spain’s biggest department store El Corte Inglés will also be slashing its prices from the 7th. Meanwhile, clothing store Mango will begin its sales on January 3rd. 

Cortefiel, Springfield and Pedro del Hierro, as well as H&M all began their sales already, which will continue until February. 

READ ALSO: Everything that changes in Spain in 2024

Measures to help with the cost of living crisis maintained

The Spanish government recently announced a new decree that would extend some of the anti-inflation measures into the new year.

The VAT reduction on gas bills will be extended for the first four months of 2024 until the cooler weather ends. It will go from 5 to 10 percent between January and March.

The reduction of VAT on basic food items will also continue until June 2024. Like during 2023, this will include a reduction of 4 to 0 percent for essential foods (such as milk, bread, eggs, pulses and vegetables) and from 10 percent to 5 percent for oils and pastas.

Other forms of aid include eliminating bank commissions at ATMs for those with disabilities and the elderly, as well as the prohibition of carrying out evictions of the most vulnerable. Find out all about these and the other measures that will be extended into 2024. 

VAT on electricity will increase but discounts will remain

The government will increase the VAT rate on electricity from 5 to 10 percent, which it was reduced to in 2021. It will remain that way throughout 2024.

Despite the increase, the VAT on electricity will remain far below the normal rate of 21 percent, which it was before the crisis.

Transport discounts have been extended

Discounts and free public transport tickets have been extended once again, meaning that you’ll be able to get your bonus passes from the start of January. Earlier this month Sánchez announced that public free transport would likely only be continued for children, young people, and the unemployed, but rules mean it’s now extended to all passengers. 

This means the government will offer a 30 percent discount on public transport as before, while each region will be responsible for adding a further discount to extend this reduction. Passengers can obtain free travel by paying a €10 deposit on Cercanías or Rodalies commuter trains and a €20 deposit on Media Distancia (mid-distance) trains. This will be returned to them if they have made a total of 16 journeys during three months.

Self-employed to pay new social security fees

The amount of social security tax that autónomos (self-employed workers) in Spain will pay this year will change once again from last year, so it’s important to be aware of how much you’ll have to stump up every month.

Fees will be reduced further for those on low incomes, while they will increase for those who earn more.

How much you pay depends on which of the 15 brackets you fall under, dictated by your monthly net earnings. Last year the social security payments ranged from €230 up to €500 per month, while this year they will go from €225 to €530. 

Limit on rent increases

Rental contracts may not increase by more than three percent in 2024 as part of the Housing Law. This means that tenants whose rental contract has come to an end and must be renewed can negotiate with their landlord as to the increase that will be applied. If no agreement is made, however, it cannot exceed three percent. 

If the landlord is a large holder (owns more than 10 urban properties), the limit of the annual variation in rent may also not exceed three percent.

Toll rate increases

Toll fees on highways will go up between 5 and 6.65 percent from January, depending on the specific conditions of each.

Specifically, the 2024 rate review means an increase of 6.65 percent for the AP-46 and AP-7 Alicante-Cartagena; 6.55 percent for AP-9; 5.12 percent for AP-68; 5.07 percent for the AP-6, AP-51, AP-61, AP-53, AP-71 and AP-7 Málaga-Guadiaro, and 5 percent for the AP-66.

Airport strikes

After postponing walk-outs when the government stepped in as an intermediary in negotiations, Spanish trade unions have reinstated calls for strike action by Iberia workers over key January travel dates at airports across Spain: January 5th, 6th, 7th and 8th.

Those striking belong to Iberia Airport Services – the airline’s subsidiary that provides ground services, including passenger transfer, loading and baggage collection and ramp services to planes – and which crucially handles ground services for several other airlines.

Iberia Airport Services operate at airports across Spain, which could therefore be partly affected by the stoppage, but the main focus of the stoppages will be Madrid’s Barajas airport.

There is another airport strike in the Spanish capital which was called with almost immediate effect on December 31st 2023 and which is ongoing as of January 2nd.

It involves ground movement controllers, who assist air traffic controllers at Spain’s biggest airport by controlling the flow of aircraft and other vehicles on taxiways and runways.

READ MORE: What’s the latest on Spain’s January airport strikes?

A possible rise in the minimum wage

Although a rise in the minimum wage or SMI is not yet official and the government has yet to decide how much it will be, the increase likely happen at some point this month or will at least be retroactive from January 1st. 

Spain’s minimum is currently €1,080 gross per month over 14 payments (€15,120 gross per year), an amount that has been in place since February 2023. While no one yet knows exactly how much it will increase, there has been some speculation and various proposals.

The Spanish Confederation of Small and Medium Companies (CEOE-Cepyme) proposed raising the SMI by six percent over the next two years, to €1,112 over 14 payments in 2024 and to €1,145 in 2025.

The unions have made a counter proposal increase that reaches 60 percent of the average salary as they claim that the evolution of the price of basic products, such as food, must be taken into account. This equates to €1,200 over 14 payments instead.

READ ALSO: What we know so far about Spain’s next minimum wage increase