Brits in Spain warning as country loved by UK nationals faces massive price hike | World | News

British people living in Spain will face higher costs next year as taxes on essential food and household bills are set to rise. 

Following reductions in recent years, VAT on electricity will return to 21%, meaning a family using 250 kWh per month could pay about €72 (£59) more per year, according to the Selectra comparison site.

The previously optional waste tax will become mandatory from April 2025, which is estimated to cost each household €165 to €200 (£136 to £165) per year. It affects every municipality in Spain.

Main telecommunications operators announced widespread increases in their monthly rates, with increases of up to €6 (£4.98) in some packages.

Food essentials such as bread, milk, eggs, fruit, vegetables and legumes will be taxed at 4% in January 2025, rising from 2%, which was held to fight inflation.

Other products will return to a 10% tax rate, including pasta and seed oils, but olive oil will remain at a lower 4% rate due to being classed as an essential.

A new tobacco and vape liquids tax will be introduced in April. For an e-cigarette user who consumes about 3 ml of liquid per day every day, this amounts to around €219 (£181) more per year.

For homeowners with a mortgage, the option to switch from a variable to a fixed-rate mortgage without incurring additional costs will be removed, making future contract adjustments more expensive.

For those paying income tax in Spain, the tax reductions for making energy-efficient home improvements will be discontinued next year, removing a key incentive for enhancing home energy efficiency.

Road transport fees are also set to rise, however public transport will remain funded until mid-year and subsidised travel could continue.

In 2025, SEITT-managed motorway tolls will rise by 2% for vehicles without an electronic reading device, and by as much as 11% for those with one.

Renfe, a leading train operator, will continue its free train season tickets for Cercanías and Media Distancia until June.

Government will work on a subsidy transport programme, which could include a €20 (16.59) monthly ticket for a single Cercanías journey, and free transport for children under 15.

Spain is one of the countries in Europe most loved by Brits, even when it comes to relocating abroad. As of December 31 2022, there were some 412,000 UK nationals residents in the Mediterranean country, according to immigration observatory data.

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