December 2013

Hello again. I was in Benalmadena the other day having lunch and I remember thinking to myself that everything seemed a little quieter than usual. There seemed fewer people on the street to me. So the latest report by the National Statistics Institute (the INE) came as no surprise.The report details how migration is negative and how the net migration from Spain is growing for the 4th consecutive year.There were 299 607 people leaving Spain this year which is 130,000 more people leaving than in 2012. The INE estimates that if current trends continue then Spain will lose 2.6 million inhabitants over the next 10 years – more than 5% of the population!

Combine this with a declining birth rate, 1.34 per Spanish mother, and we have a demographic problem around the corner.The INE estimates that by 2050 40% of the population will be over 65.

From my own experience I think I can explain why this is happening. Firstly, the youth of Spain have had enough of high unemployment and those with an adventurous spirit are going abroad looking for work.I know a few from our village who have done just that and are now working in England.

Secondly, some of my British friends who were resident here have decided to split their time between here and the UK in order to become tax resident there once again.They have done this solely because of the hacienda’s requirement to declare overseas assets.

Clearly the government of Spain must take action to reverse this trend. They must change the tone and make expats more welcome here. Security for home owners must also be a priority.

Remember, they have 3,500,000 empty houses to fill too!