SHARE
COPY LINK
For members

MONEY

How much money do you need to be part of Spain’s 1 percent?

We hear a lot in politics about the '1 percent', though most don't realise how much money you actually need to be part of this elite group of millionaires. Here's how Spain compares to the rest of the world when it comes to the uber-wealthy.

How much money do you need to be part of Spain’s 1 percent?
Photo: Pexels/Pixabay.

According to data from UBS’ Global Wealth Report 2023, there are 1,135 million people in Spain who could be considered millionaires, taking into account all their assets including cash, investments and property.

That means that Spain has around 2 percent of the world’s total millionaires (as per UBS’ data using 2022 figures). For context, the UK and Germany each have 4 percent shares, France has 5 percent, and the U.S. a whopping 38 percent of the millionaires around the globe.

However, being a millionaire is one thing, and being in the ultra-rich bracket is another thing — something often referred to in political discourse as the ‘1 percent’.

READ ALSO: How Spain’s new millionaire tax will affect wealthy foreigners

But how much money do you actually need to have to be a member of the 1 percent?

According to The Wealth Report produced by Knight Frank estate agents, the data shows that a person in the U.S. would need a minimum of $5.81 million to be considered part of the top 1 percent, for example.

In Monaco, a net worth of $12.88 million is required to be part of the 1 percent, closely followed by Luxembourg ($10.83 million) and Switzerland ($8.5 million).

What about in Spain? Well, the bar is a little lower. In order to join the 1 percent in Spain, you’d need a net worth of $2.46 million dollars to be part of that exclusive club.

READ ALSO: What’s considered a decent salary in Spain?

Comparing Spain to countries such as Luxembourg and Switzerland isn’t really useful, so for context, Spain is on the lower end of the rankings in terms of its bigger, more comparable European neighbours.

In Sweden, $4.76 million is needed to join the 1 percent. In Germany it would be $3.43 million; France $3.27 million; and Italy $2.54 million, meaning it’s slightly more difficult to get into the 1 percent in Spain’s Mediterranean neighbour than it is in Spain.

But there are levels of wealth, of course. Though in a time of inflation and lingering economic stagnation it might not feel like it, but it’s actually far easier to become a member of the 1 percent (in Spain or anywhere in the world) than it would be to become part of the super rich.

In the financial world, these sorts of people are often known as UHNWI (Ultra High Net Worth Individuals) and are people who have a net worth of $30 million or more.

There are currently some 627,000 people in this category around the world. Knight Frank’s Wealth Sizing Model estimates that there are 10,149 UHNWI people in Spain.

Interestingly, despite the threshold to be part of the 1 percent in Spain being roughly half of that in Sweden, Spain boasts far more UHNWIs than the Scandinavian country (4,125) and isn’t far behind Switzerland (14,734). It is some way behind the UK (23,072), and France (24,941) however. 

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

FOOD AND DRINK

The foods that will increase in price in Spain in July 2024

The Spanish government's VAT freeze on certain food products is set to finish at the end of June, meaning several basic and essential items will get more expensive.

The foods that will increase in price in Spain in July 2024

On June 30th the Spanish government will end its VAT rebate on certain food products, making several basic foodstuffs more expensive overnight. The measure was first approved by the government as part of a package of measures aimed at alleviating the economic consequences of the war in Ukraine and supporting low-income families amid high inflation.

In January 2023 VAT was cut on certain products that were already at the reduced rate of 4 percent, and in addition, VAT on oils (including olive oil, which was later reduced to 0 percent) and pasta were lowered from 10 percent to 5 percent.

However, after the policy was extended through the entire first half of 2024, the normal VAT rates are set to come back into force from July 1st if the government doesn’t further extend it, something that now seems unlikely.

READ ALSO: Why is olive oil cheaper overseas when Spain is the world’s top producer?

Foods that will get more expensive 

The foods that were included in the VAT reduction and will therefore now get more expensive from July include:

  • Plain bread, as well as frozen plain bread dough.
  • Flours
  • Milk: natural, certified, pasteurised, concentrated, skimmed, sterilised, UHT, evaporated and powdered
  • Cheeses
  • Eggs
  • Fruits and vegetables
  • Cereals
  • Olive oil and seed oils.
  • Pasta

This comes amid shocking consumer watchdog findings that show the price of food in Spain is, in extreme cases, up to 875 percent more expensive when sold on supermarket shelves than it is at source. This is according to a Facua-Consumers in Action press release on Tuesday.

According to the study, a kilo of lemons at source was priced at €0.20, yet the price per kilo in supermarkets is, on average, €1.79 — 695 percent more expensive. A kilo of lentils was found to cost on average 369 percent more in supermarkets than what the farmer is paid for the same product (€0.76/kg). 

Some Spanish economists argue that grocery shopping has become more expensive for Spaniards than for other Europeans because they tend to consume products that are increasing in price the most, particularly olive oil. 

The Bank of Spain has also pointed out that a preference for fresh produce in Spanish households has forced many to decide between eating healthily and cutting costs.

SHOW COMMENTS