Spain’s €200 cost-of-living subsidy

The Spanish government has announced a new €200 handout as part of a package of measures worth around €10 billion to help alleviate the rising cost of living. Find out who is eligible and how to get it.

The Spanish government on Tuesday December 27th announced a new raft of measures to help families against the rising costs of inflation. One of these measures is a benefit of €200 for vulnerable families who are struggling with the cost of living and rising household bills.

This is in addition to the temporary reduction of VAT on basic food items such as bread, milk, eggs, cheese and vegetables.

Who can benefit from this help?

The €200-cheque is specifically for those families or households that earn under €27,000 per year.

Keep in mind, it’s not available to those where two or more members of the household earn under €27,000 each, but only when the income of the whole family adds up to less than this amount.

The government has confirmed, however, that it is available to those who live alone, provided they earn under €27,000 and meet all the other requirements.

The average household income in Spain is currently €35,000, so this new aid will benefit the most vulnerable families in the country.

Are there any other prerequisites?

Yes, as well as earning under €27,000 it will not be handed out to those whose family heritage exceeds €75,000.

This means that the authorities will take into consideration how much savings you have in your bank account, as well as bonds, shares and stocks. They will also include physical assets such as vehicles or valuable pieces of art, but not the value of your house.

Is the aid compatible with other benefits?

The €200-cheque cannot be claimed by those who are already benefitting from the Minimum Vital Income (Ingreso Mínimo Vital) or those who receive a pension.

For those on Minimum Vital Income, this too has been extended into 2023 and has increased by 15 percent, together with non-contributory pensions.

When will I receive the money?

The government has not yet announced how those who are eligible will receive the payment, but despite this, the newspaper El País has said it will be issued as a single payment via bank transfer once the Tax Agency has proved that they have the right to receive it.

How many people will benefit?

The government has confirmed that a total of 4.3 million families will be able to access this handout, while the Ministry of Finance estimated that more than 8 million people in total will benefit from it.