IPREM is an index used in Spain as a benchmark in the provision of economic aid, subsidies and unemployment benefits. This indicator serves as an indicator of the cost of living in Spain. The IPREM indicator appeared in Spain in 2004 and replaced the previously used minimum wage.

 

The question arises. And what does this have to do with foreigners who just want to move to Spain or already live here? It's simple.

On the basis of IPREM, the minimum monthly income for foreign citizens is calculated when applying for many residence permits in Spain. It doesn't matter if you apply in your country or if you renew your residence permit in Spain. In any case, the amount of funds provided depends on the size of the IPREM on the date of submission and the special conditions of each type of residence.

 

For 4 years (from 2017 to 2020), the indicator did not change and amounted to 537, 84 euros per month. But the pandemic did not go unnoticed. In 2021, the size of IPREM increased by 5%. This is the largest leap in the history of the index (you can check out the trends in the carousel). It seems a little, only 27, 06 euros. And if this is multiplied by 12 months?

 

Let's consider the calculation of IPREM using the example of a residence permit no lucrativa:

Economic funds for living in Spain must show at least 400% IPREM per applicant and 100% for each family member. For 2021 it is 564, 90 euros per month.

Therefore, the minimum amount to be shown for an initial request for 1 year of residence for the applicant is 27,115.20 euros (564.90 x 400% x 12 months).

If he/she wants to register 2 more family members, the amount increases significantly. After all, for each of them you need to show additional funds in the amount of 100% IPREM: ((564, 90 x 100% x 12 months) x 2) = 13 557.60 euros.

As a result, in total for 3 family members, we get 40 672, 80 euros calculated for 1 year.

 

When renewing no lucrativa later, it is important to take into account the fact that the requested amount is doubled. This type of residence permit has been extended for 2 years. Therefore, you need to have at least 81,345, 60 euros on your account.

 

For comparison, in 2020 the amount for a year per 1 applicant would be 25,816.32 euros, and taking into account 2 family members, 38,724.48 euros. The difference is obvious.

 

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