According to statistics produced by Spain's INE (Instituto Nacional de Estadisticas), by the end of 2021 more people were in employment than before the coronavirus pandemic started in March 2020.

During the year 2021 Spain created 841.000 jobs, the largest increase since 2005. At 20.184.900, there are now 4% more people actively employed than at the end of 2020. The good news is that this is not merely due to a reduction in the impact of Covid. At the end of last year Spain was in the grip of the sixth wave, which has been the worst in terms of infection rates, although not in the seriousness of symptoms. Evidence of the underlying strength of the economy is seen in that despite the continuing effect of Covid, the number of people employed is higher than at any time since 2008.

Running parallel to this increase in people actively employed is a structural change in employment contracts. Spain has two types of employment contract: indefinido or permanent and definido which are temporary, typically for six months. The use of definido contracts provides flexibility in the labour market but has traditionally been abused by employers to avoid employees accruing rights. The Spanish government has recently taken steps to limit this abuse and their action appears to be bearing fruit. In 2021 there was tremendous growth in indefinido contracts and a significant reduction in the number of definido contracts. This may also be a reflection of employers' confidence in the future of the economy.  

Semana Santa

According to research by the Pew Research Institute a significant proportion of Spaniards who grew up as Catholics have lost their faith in adulthood. The drop in adherents in Spain is one of the most pronounced in Western Europe. Only Belgium and Norway have seen a greater drop.

Of the respondents to their survey undertaken between April and August 2017, 92% stated thay had been raised Christinan (which in post-Inquisition Spain means Catholic) but only 66% remained Christian in adulthood as the graph below shows.

Of the 66% who consider themselves still to be Christian only 21% attend church at least once a month, slightly more than the U.K. but less than Austria, Germany or Switzerland.

Finally, the propertion of respondents who state that they are atheists, agnostics or have no religion is higher in Spain than all Western European countries surveyed apart from the Benelux countries and the Scandinavian countries of Norway and Sweden.

This research depicts a country that perhaps few people outside of Spain would recognise. It is certainly one of the most tolerant and socially liberal Western societies with a less negative opinion of muslims and with gay marriage and same sex-adopition legalised since 2005.

Spanish Parliament Building

Spain is in an anomalous position with regard to separating the state from the Catholic church. 

State schools are all lay institutions and religion is taught only as an option. In my daughter’s school the majority of students opt for Valores Éticos (Ethical Values) instead. This is an interesting choice encompassing debates about racism, citizens rights and obligations, discussion of news topics etc.

Following on from my article about the decline in those who regard themselves as Christians (a fall from 92% brought up as Christians to 66% who remain Christians in adulthood) it is interesting to note that only roughly half of that percentage (35%) elect to tick the box on their annual tax return (la casilla de la iglesia) that diverts taxes to the Catholic church.

However, this diversion of funds deprives the state of approximately €250 millions annually, a figure that has not declined despite the crises of the past ten years. So, where does this money go to? Much of it pays the salaries of 22.000 priests who receive €12.600 p.a tax free together with their accommodation and associated costs such as electricity, water etc. and the salaries of 113 bishops and archbishops who receive €17.500 p.a. plus accommodation, a car and chauffeur.

These salaries account for roughly 70% of the diverted taxes, the rest is paid over to the various dioceses for other expenses. Although there is a tacit understanding between church and state that services for followers are provided free there are a vast array of additional services that the clergy charge for, whether directly or as chaplains to prisons, hospitals, brotherhoods, teachers of religion in schools or colleges etc.

Structural Change in Spanish Mortgages

Partly caused by the banning of the minimum interest rate clause (la clausula suelo) in Spanish mortgages (see my earler article) there has been a dramatic shift from Base Rate Plus mortgages to Fixed Interest mortgages. At the end of 2015 Fixed Rate mortgages represented less than 10% of the total. By mid 2018 it was 40%.

This has been accompanied by a decrease in the average interest rate charged due, in part, to fiercer competition between financial institutions. Wheres in early 2009 the rate was 5.5% by Autumn 2018 it has dropped to 2.6%.

With the recovery in the economy and increasing property prices, there has been a commensurate increase in the number of mortgages granted which have grown steadily since late 2013. At around 30.000 per month they are a long way from the heights of the boom but the new law on mortgages whereby the costs are switched from the borrower to the lender is expected to boost the growth considerably. This is likely to accelerate the annual growth in property prices which stood at +7.2% for the thrird quarter of 2018.

Recently published data on the number of mortgages conceded by financial institutions continues to show a modest but sustained upward trend as the graph from Idealist below shows.

Rock bottom was hit at the end of 2013 but by late 2018 the number of mortgages granted, although a long way from the giddy heights of the boom years had returned to the levels of mid-2011.

Whether this growth will be maintained is uncertain as, although the economy is growing well, recent changes in legislation affecting the costs that banks must bear when conceding mortgages may place a brake on the market until these institutions work out how best to make money in a new environment.

From 1st January 2019 the socialist government of Pedro Sánchez increased the minimum wage by a whopping 22%, the largest ever increase since the minimum wage was introduced. The level is now set at €900 per month in a 14 month year (double payments were traditional in May and August) or €1.050 per month if paid on a 12 month basis. There is even a rumoured plan to increase it again in 2020 (if Sr. Sánchez manages to stay in office!) to €1.000 for a 14 month or €1.167 per month on a 12 month payment basis.

Most economists would applaud such an increase as the lowest paid tend not to have the chance to save but spend all of their income on daily living thereby pumping money into the economy. The likely effects of this move, according to some commentators were that it would drive more low paid jobs into the insecure black economy, lower the number of future hirings, raise the rate of inflation and cause the loss of existing jobs. It looks like this last fear may have come to pass.

In Spain there are thousands of people contracted and losing their jobs on a daily basis, partly because of the widespread use of fixed term contracts (usually of six months duration). On 1st January 2019 there were 274.000 losses a figure not seen for a decade. In 2018 there were 176.000 and in 2011 only 57.000. This may simply be a blip as the market adjusts and prices rise slightly to accommodate the rise in wages, which hits agriculture and the hotel industry hardest, both of which depend heavily on unskilled manual work such as harvesting and the cleaning of bedrooms.

So, what seems initially to be a boon to the lower paid may result only in workers being pressurised to increase productivity and/or a reduction in the hours worked. 

The unemployment rate in Spain dropped, at the end of 2018, to its lowest level in a decade. From the peak of over 25% on 2013, the official rate has now fallen to 14.4%.

Although still high compared to the EU average of 6.6% or the Eurozone 7.9% it is perhaps as well to bear in mind the prevalence of cash in the Spanish economy. Many people, although officially unemployed, are receiving funds for work done outside of the official economy. And this applies to all walks of life, both employed and unemployed. Even architects and lawyers as well as painters and decorators, gardeners etc. like to enjoy part of their fees outside of the system.

Why else are 35% of all the Bin Ladens (€500 notes) in circulation in the Eurozone reputedly in Spain?

Although the overall level of property transactions are more than 30 % below their peak in the boom year of 2007, sales of existing houses, as opposed to new-builds, are fast approaching the levels seen in the boom. In 2018 422,500 used properties were sold compared to the height of 448.900 in 2007. More second-hand properties were sold in 2018 than in any year since 2007 and the trend is upwards.

Although this will definitely have an effect on prices, which are already on the increase as the graphs below show, in our particular niche of country properties, every one of them different, whether prices are rising, remaining stable or even falling depends more than anything else on the situation of the seller. My experience of prices over the past thirteen years is that we are still at a level very significantly lower than in the boom years and even now sellers will sometimes accept offers significantly lower than the price at which they are listed.

The following graphs and a table from two different sources provide a snapshot of how prices are moving in general and in Andalusia in particular.

TINSA - The largest firm of valuers in Spain

Movement of prices in Spain

Mediterranean Diet

According to data just issued by the Bloomberg Global Health Index, Spain ranks as the healthiest country in the world, replacing Italy, the leader in the last survey. The index is based on various factors including longevity, infant mortality, rates of obesity and tobacco consumption, the health system and access to clean water etc. 

Currently second on the list is Italy followed by Iceland and Japan. Sweden is 6th, Norway 9th, France 12th, Netherlands 15th, the UK 19th, Portugal 22nd, Germany 23rd, Denmark 25th, Belgium 28th and the USA 35th.

Spanish Flag

I read an article recently which highlighted just how much Spain has changed since the death of Franco in 1975 and the adoption of the new constitution in 1978. Whilst many countries have experienced significant change in this period, Spain's transition from a dictatorship, under which industries producing poor quality goods were protected, to a modern democracy with an open economy, has seen a seismic shift. Entry into the European Union in 1986 has undoubtedly been one of the motors behind this change. Spain is still a net beneficiary of EU funds, although to a lesser extent than in the past, and this, together with a desire for political stability, explains why the Spanish are such enthusiastic Europeans. The table below shows just how great the change has been in the past forty years.

Tapas - Chipirones With Potato & Peppers Salad

On a recent trip through Sevilla province I stopped to meet a colleague at a roadside restaurant near Marchena.

I ordered a bottle of water while I was waiting. The waiter asked what tapas I wanted with the water. I opted for chipirones (baby squids). The dish arrived with a  potato and red pepper salad. Delicious.

When I came to pay I could barely believe the cost €1.00. Yes, one euro. Only the water is charged for.

(Apologies for the dirty knife and fork. I'd already eaten one chipirone when I took the photo!)

Last week I met an English resident of rural Andalusia who, around a year ago, went to see his local GP complaining of chest pains. It was diagnosed as bronchitis but, three weeks later, when it hadn't go away he returned to the surgery. A second doctor immediately arranged for him to have tests at a hospital. Guess what?

The result was that he had cancer. Fortunately, it was caught early and with radiotherapy treatment he has been able to clear the cancerous growth. I asked him about the treatment he had received. Exemplary, he said. Couldn't have been better. Right through from the nurses to the consultant specialists. And any time I need an appointment locally, I get it straight away. I've never had to wait more than the next day.

Each time he needed transport to the hospital an ambulance came down the narrow winding track through the olives to his cortijo to collect him. You wouldn't get that in U.K., he said.

This is an expression I have heard before. And I’ve heard even worse said about the health service in the Netherlands.

This man’s experience echoes that of a client of mine. Lawrie was rushed to hospital complaining of chest pains and difficulty in breathing. He ended up spending several weeks in hospital and was operated on for a heart by-pass. A week after the operation, he was back home and active once again.

One of the first questions you might ask, whether buying a property at home or in Spain, is "Is the area safe?". In the challenging economic conditions of the last decade, which have hit southern Europe harder than most, it is easy to imagine that, given the significant increases in unemployment and poverty, crime figures would be higher than in other places. But, in fact, in Spain, it is exactly the opposite.
In a survey conducted by the European Institute for Crime Prevention and Control (affiliated with the United Nations) in 2014, Spain's crime figures were shown, across almost every area, to be lower than those of, for example, the U.K.

In police statistics, from 2007-2011 per 100.000 population, there were on average 2.000 offences in Spain, compared to about 8.000 in England and Wales, and over 11.000 in Scotland.

In terms of the most common offences, Spain is very much the winner. There was a 7% drop in rapes per 100.000 population in Spain, compared to increases of 22%, 18% and 30% in England and Wales, Scotland and Northern Ireland.

For every 900 robberies per 100.000 population in Spain in 2011, there were 3.603 in England and Wales, 2.727 in Scotland and 1.992 in Northern Ireland. And, whereas over the same four-year period, there was not enough data to record the number of burglaries in Spain, per 100.000 population, England and Wales had 990. 

Finally, assault figures suggest that sunshine reduces anger by a factor of over 40: for an average of 35 offences in sunny Spain over four years, there were 1.487 in chillier Scotland.

One of the first things that might have struck you when you first visited Spain was how empty the restaurants were at 1pm, or 8pm, and how people seemed to think nothing of eating breakfast at 11am, or meeting for a drink past 10pm at night. I, for one, remember being laughed at for going for churros y chocolate at 4pm; churros are a classic breakfast/morning or teatime snack, whereas 4pm is the end of lunchtime for Spanish workers and school children, with another four or five hours to go before dinner.

But, as the graphic from El País shows, the Spanish day is very different to those in other countries. The further north you go, to Sweden or Germany for example, the earlier the day starts, perhaps to make the most of the light, perhaps because, unlike Spain, those countries have less need to adjust to extreme heat in the summer, which makes anything other than being in a cool, darkened room, impossible. However, though that might seem to be the reason for such a late-starting, late-finishing day, the real cause is Franco not Fahrenheit.

After World War II, most countries in Europe were forced to modernise what were now seen as long, rigid working hours, established in the Industrial Revolution, but Spain, under Franco, did not. And, with a scarcity of jobs, working men (and they were mostly men) were forced to take two jobs, one in the morning, one after 4pm. The family would wait for his return, past 8pm, to dine and that working and eating structure has stuck.

Such an elongated day needs changing, argues José María Fernández-Crehuet, the economist whose book La conciliación de la vida profesional, familiar y personal. España en el contexto europeo, examines Spain’s anomalous position in Europe. The first step would be to align Spain to its true geographical time zone, GMT+ 0, instead of GMT +1, where it currently sits. Spain’s clocks would then be synchronised with those of Portugal, the United Kingdom and the Canary Islands. Thanks to eating, and sleeping earlier, Spaniards would benefit from improved health, biorhythms and productivity.

 Author: Louise Tucker

On our patio in the Albayzin district of Granada we have a large olive tree. Like the lemon tree on the other side of the patio it is a force of nature. Every second year the crop of black olives is huge. In the past I have tried curing them to rid the bitterness. Without much success. 

The tree grows at such a phenomenal rate that it invades the windows of the house and when the olives ripen they fall onto the terra cotta paving and leave terrible black stains which only agua fuerte will shift.

So… two months ago I decided to kill two birds with one stone: heavily prune the tree when it was still full of olives, abandoning the harvest to the rubbish collectors. I left nine huge bundles of olive branches by the underground refuse bins one Saturday night. On Sunday morning they were gone and I spent the entire day with a pressure washer trying to clean up the patio.

A couple of weeks ago our neighbour María-Luisa bused. The postman had left a parcel with her as we were out. “What have you done with the olive crop this year?” she asked me. I sheepishly admitted that I had thrown it away. “Why?” she was incredulous. “I’ve got some of yours here”, she said disappearing into her house.

She presented me with a shallow plastic dish of gnarled looking black olives. A strong aroma of oregano pervaded the dish. “I made these from one of the branches that hung over my patio” she proudly announced, pushing them on me. “They’re yours,” she said. They tasted delicious.

The huge lemon tree on our patio in the Albayzin district of Granada is, and always has been, ecological and entirely natural. And just as in the human population people are made in all shapes and sizes, so it is with lemons! In the photo there are a few of this year's plentiful crop. Most are round, the shape associated with lemons, but some are elongated and others well, just weird, as the photo shows.

Do they most closely resemble the faces of witches from Shakespeare's Macbeth? Or crab claws? Or were they speaking through open mouths when time froze?

Whatever, they are as wonderful as they are weird. And their juice is heavenly.

Author: Allan Hilder

Four years ago my husband and I led a 'city life', he was a successful commercial photographer and I was the Director of the Netherlands Institute. But there was something unsatisfactory about our lives and we decided that we wanted to make a change. Not just a change of country but a bigger, all encompassing change of life and lifestyle. We wanted a different way of living, with a smaller carbon footprint and more connected to nature.

So we embarked on a journey of searching for that special place. High on our wish list was a place in a natural park, where we would have nature on our doorstep. That however was a difficult box to tick, as properties in nature reserves are scarce. During our search we somehow ended up in La Alpujarra and I am not sure whether we chose it or it chose us.

You would imagine that this gem in Southern Spain would attract many tourists but it actually doesn't and is therefore relatively unspoilt and peaceful. The small trails and old bridle paths that lead through fertile, green valleys and along rugged mountain tracks are definitely off the beaten track. It is a picturesque place where it feels like time stood still.

We exchanged our city life for a life in the mountains, we bought a traditional, stone built cortijo with 2 hectares of land. The house was ready to move in to but the land had been neglected for many years and it needed trees planting, a lot of water and tlc.

One of the reasons we wanted to live in nature was because of our two horses and our desire to go out on long rides. We wanted to be able to just ride out of our own gate into the natural park, and that we found!

Last week we wrote about how the resale market and house prices were definitely improving. But now, it seems, even the new-build market is finally recovering.

On Spanish Property Insight Mark Stücklin notes that since 2008 the building of new houses has dropped by 97%. And, once the recovery began, a lack of new housing meant there was nothing for sale to meet demand. But in April 2016, for the first time in two years, sales of new-build housing went up by 15%. This part of the business has been the slowest to recover from the crisis but, now, says Stücklin, it looks like joining the rest of the market in an upwards curve. This can only be good news for buyers, sellers and investors alike, showing that after eight years, buying a new or old property in Spain is once again looking like a solid investment decision. 

An evening in Spain, in any part of the country and nearly all year round, begins with el paseo, a leisurely stroll through the streets, meeting and greeting friends and family. It is the dividing line between the working day and the evening, signalling a slowing down of tempo, a shift from activity to leisure.

In summer, this glorious tradition is often made even better with the addition of an ice cream and in Granada, you will find that the best ice cream comes from Los Italianos on Calle Gran Vía de Colón. Many a Granadino will tell you that the start of spring is not marked by the weather, but by the first day that Los Italianos opens, usually in April. 

And, a bit like the breakfast tradition we mentioned last week this gentle walk enables you, as a resident, to learn several things. In Granada, for example, head to Plaza Nueva which, on a sunny evening, will be thronged with just as many locals as tourists and take a minute to sit and watch. You will see couples, families and groups of friends strolling along with, it seems, very little direction. They will be stopping and starting, chatting and moving on, stopping and starting again.

If anything is likely to show you how the Spanish interact, and how important such interactions are, this is it. People don’t necessarily make appointments to see someone; they simply head to the same place, bump into someone, catch up, move on. Though the Spanish might seem quite formal, in that they will often greet you with a handshake, el paseo demonstrates that, in reality, they can also be incredibly informal. Talking, greeting, walking, eating, these are all essential parts of Spanish life; it is lived outdoors with lots of others, not indoors with just a few; it is noisy, not quiet; its pleasures are everyday and for everyone. 

When clients of ours buy or sell a property in Andalucia, we do all we can to make the process as simple, enjoyable, transparent and cost-free as we can. Unfortunately, sometimes we are let down by other players in the chain, as happened recently.

A vendor client of ours had returned to Germany to live and no longer had a Spanish bank account. When the sale went through the buyer's lawyer agreed to cancel the bank guaranteed cheque which had been issued that morning and he made a transfer in the same amount to the vendor's euro account in Germany. A straightforward favour, which should have cost little money.

Imagine our surprise when the vendor sent an email to say that Banco Popular had charged €1.227.51 to make a transfer of  €182.625.00. No exchange, just one click of a mouse to effect the transfer. Absolutely outrageous. And when it was challenged by the lawyer, the claim fell on deaf ears. His request for a refund was continually passed around from office to office. Delaying tactics, hoping that it would be forgotten.

Banco Popular will never again see an account opened by any of our clients. Whatever damage we can do to their business, we will.

The cheapest and most efficient bank is ING Direct. If you are happy to do your banking online they are by far the best and the cheapest. But if you are the sort of person that likes to go into a bank regularly they are not idea as they have few branches: one in each of Granada, Málaga, Sevilla and Cádiz.