70% of Spaniards earn under €30,000 gross a year
Spain's Tax Agency data for 2024 show that 70% of income tax filers earn less than €30,000 a year, worse than the 67.59% of 2023.
English · Original discussion in Spanish · Published
70% of Spaniards declare less than €30,000 a year: a reflection of structural precarity
Imagine a 35-year-old worker in Madrid, with a university degree, earning €28,000 gross a year. They are not unemployed, they have a permanent job, and yet they are part of the 70% of Spaniards who do not reach €30,000 a year, according to the latest data from the Tax Agency (Agencia Tributaria). The figure, corresponding to 2024, marks a deterioration from the previous year: in 2023 they were 67.59% of filers, and now they are 70.02%.
The data, published by the Ministry of Finance and reported by Vozpópuli, indicate that 17.25 million people declared income below €30,000 in 2024, compared with 16.21 million the previous year. A one-percentage-point increase in a single year reflects a worrying trend that cannot be explained by inflation or a growing workforce alone, but by a wage structure anchored at low levels.
The debate around these figures usually polarizes between those who blame the drag of the size of the state and those who point to the informal economy. The truth is that, with a population approaching 50 million and foreign population growth of 4.88% year-on-year (7.3 million, 15% of the total), pressure on the pension system is mounting. And if 70% of filers fail to reach that threshold, income tax revenue suffers.
Some argue that many of these low incomes are supplemented by undeclared work or small unreported businesses. But even if that were the case, the official figure is what the tax authorities use to calculate benefits and contributions. The gap between declared and actual income may be a cushion, but it does not solve the underlying problem: an economy that does not generate enough added value for most of its workers to exceed €30,000.
The striking fact is how fast things are getting worse: in just one year, the percentage of people below that threshold has risen by nearly two and a half points. If the trend continues, it could soon reach 75%. And then, the question of the sustainability of the current production model will cease to be theoretical.
Imagine a 35-year-old worker in Madrid, with a university degree, earning €28,000 gross a year. They are not unemployed, they have a permanent job, and yet they are part of the 70% of Spaniards who do not reach €30,000 a year, according to the latest data from the Tax Agency (Agencia Tributaria). The figure, corresponding to 2024, marks a deterioration from the previous year: in 2023 they were 67.59% of filers, and now they are 70.02%.
The data, published by the Ministry of Finance and reported by Vozpópuli, indicate that 17.25 million people declared income below €30,000 in 2024, compared with 16.21 million the previous year. A one-percentage-point increase in a single year reflects a worrying trend that cannot be explained by inflation or a growing workforce alone, but by a wage structure anchored at low levels.
The debate around these figures usually polarizes between those who blame the drag of the size of the state and those who point to the informal economy. The truth is that, with a population approaching 50 million and foreign population growth of 4.88% year-on-year (7.3 million, 15% of the total), pressure on the pension system is mounting. And if 70% of filers fail to reach that threshold, income tax revenue suffers.
Some argue that many of these low incomes are supplemented by undeclared work or small unreported businesses. But even if that were the case, the official figure is what the tax authorities use to calculate benefits and contributions. The gap between declared and actual income may be a cushion, but it does not solve the underlying problem: an economy that does not generate enough added value for most of its workers to exceed €30,000.
The striking fact is how fast things are getting worse: in just one year, the percentage of people below that threshold has risen by nearly two and a half points. If the trend continues, it could soon reach 75%. And then, the question of the sustainability of the current production model will cease to be theoretical.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (11 replies).
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