Why are Expats Leaving Spain?

Spain has long been a popular destination for expats, drawn by its rich culture, stunning landscapes, and relaxed way of life. However, recent trends suggest there has been a significant shift, with many expats reconsidering their choice to live in the country.

In this blog, we explore the reasons behind this trend, looking into the rising cost of living, challenges in the job market, and cultural integration hurdles. By understanding these factors, we can gain some insight into the evolving expat landscape in Spain, to see if it’s still an attractive destination.

Recent data shows that between 2002 and 2021, more than 230,000 UK expats left Spain, with around 31,000 returning to the UK. In 2023, there were around 284,000 UK expats living in Spain, a decrease from 291,000 in 2022.

Whilst there is still a sizeable UK immigrant population in Spain – making up around 6% of the total population, there seems to be no doubt that numbers are falling. The question, then, is why are expats leaving Spain?

There are a number of reasons why expats are leaving Spain, either to return to their home country or to relocate to a new place.

Cost of living increases have had a major impact on people all over the world, including in Spain. One of the draws of Spain for expats was the promise of a lower cost of living, while retaining a good quality of life. While the cost of living in Spain is still around 20% lower than in the UK, rising prices may mean that people are getting a lot less for their money. This could prompt people to move elsewhere in the world, where the cost of living is still low.

Costs in cities have risen exponentially. Rent costs in Madrid have risen by 9% over the past year, and in Barcelona, rent costs have risen by 6%. This could be another factor driving expats away from Spain and in search of more affordable destinations.

The job market in Spain looks to have been an issue for expats. Whilst Spain’s economy has shown signs of recovery post-pandemic, the unemployment rate remains relatively high, particularly for young people. Competition for jobs can be fierce, and a fluency in Spanish is usually required, which can put expats at a disadvantage.

There has also been a rise in temporary contracts in Spain, which creates issues around job security and satisfaction. Many workers find themselves in uncertain situations, with no guarantee of long-term employment. This can be a major drive for people looking to move elsewhere, where they may be able to find better, more secure job opportunities.

There has been a degree of instability in Spanish politics in recent years, with regional independence movements and coalition governments. There has also been ongoing debates around immigration policies and economic reforms, which can cause uncertainty for expats.

Economic issues have also been impacting expats, as fluctuating inflation rates have impacted the cost of living, and wages have not consistently kept in line with rising expenses. This financial instability can cause concerns amongst the entire population, including expats, who may find they feel more secure returning to their home country or finding a more stable economy elsewhere.

Another issue that impacts expats is cultural integration. This can be an issue faced by expats in all countries, but British expats in Spain especially cite difficulties around navigating cultural differences, communication styles, and social etiquette.

This can be expounded by the number of expat communities across Spain. These do provide necessary social communities for many people, but they can result in further isolation and separation between the Spanish and expat communities.

Expats may struggle with day-to-day interactions, especially when dealing with their healthcare treatments, where they may require an interpreter. This can also cause a barrier to forming deep connections with the local people, further contributing to feelings of isolation.

Another reason expats may be leaving Spain is due to their own personal lifestyle changes.

For example, it’s known that many Brits retire to Spain, to enjoy a relaxed way of life while they’re not working. But whilst people may move to Spain in their 60s, later on in life they could begin to face more health issues or prefer to be closer to their families. This change in circumstances can prompt people to move home, where healthcare is more accessible, and their families are nearby.

Similarly, young families might move to Spain, and then find they have a need to find better educational opportunities or family support networks. This can cause them to either move back home, or to move to a destination that’s known for world-class education.

Even with a slight reduction in expats, Spain remains a popular destination for those who want to live abroad. Offering a relaxed way of life, temperate climate, and rich culture, Spain still has a lot to offer for expats.

If you’re moving to Spain, make sure you have access to the best possible healthcare with international health insurance. Expatriate Group provides flexible, comprehensive health insurance policies designed specifically for expats. Get a quote today.