Cost of Living in Spain to rise from today

Fresh produce aisle in Spanish supermarket

New IVA/VAT rates came into force throughout Spain today, meaning that already-cash-strapped families will have to tighten their belts still further.

Here´s what´s changed:

The general rate rises from 18% to 21%.

The reduced rate rises from 8% to 10%.   Many items previously included in the reduced rate list are now excluded, with their tax rate rising to 21%.   This means that entrance tickets for theatres, cinemas, shows,  attraction parks etc;  hairdressing; flowers, plants and funeral services will all cost considerably more.

The super reduced rate of 4% remains unchanged.  Again, many items in this category previously have now been excluded and placed within the general rate of 21%.   The cost of many stationery items and school materials will rise steeply  – which won´t go down well with parents as their children return to school shortly.

You can read the full list of changes here .

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Cost of Living: East of Málaga, Spain August 2012

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17 thoughts on “Cost of Living in Spain to rise from today

  1. Pingback: Cost of Living: East of Málaga, Spain – November 2012 « East of Málaga

    • I always try to buy fresh, local produce rather than anything that is ready-made. At least that way, I KNOW what is in the food, to try to keep it as healthy as I can and it´s usually a little cheaper, too.

      The problem with prices is that they rarely come down :(

    • Yes, it will be interesting.

      I´ve read that Mercadona, Lidl, Carrefour and some other bigger supermarkets are going to absorb the increases for a while. We´ll have to see!

  2. I think this is happening in a lot of places. Australia has just been the recipient of a “carbon tax”. My “shopping” list post is still a work in progress (need to spend some hours in the office to pay for those rising costs…)

    • We´ve been coming to Australia for many years, and over the past few – the prices have risen soooo much.

      Australia and New Zealand are very expensive places for us to visit now – not only because of the price rises but also our low currency exchange rate :(

    • I´ve read some articles which suggest that the large supermarkets (Mercadona, Lidl, Carrefour etc) are going to absorb the cost of the IVA for a while – but I shouldn´t think that will last for long.

      Of course, that´s only food/household groceries. So many other things will be more expensive straight away. :(

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