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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?
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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. 

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BANKING

EXPLAINED: How to change bank accounts in Spain

Deciding to change bank accounts can feel like a big decision. Fortunately in Spain the process is incredibly quick and easy if you know what you're doing.

EXPLAINED: How to change bank accounts in Spain

So you want to change bank accounts in Spain. Maybe you’re fed up of the customer service and branch opening hours. Or maybe you’ve had enough of paying the various extra charges and commissions many Spanish banks charge account holders. 

Whatever the reason, changing bank accounts can feel like a big decision. For many people, it can be something we put off despite knowing that we could be saving ourselves time (and even money) in the long run.

This could be because it feels like a hassle, or perhaps because you’re well versed in the difficulties that can arise when trying to get anything administrative done in Spain.

READ ALSO: The Spanish bank accounts with no extra charges in 2024

Fortunately, the process of changing bank account in Spain is surprisingly easy, and very quick.

This is because the Banco de España did a review in 2022 and changed the rules on switching accounts to make it easier for customers, putting the onus on banks themselves to actively collaborate.

This was also done to better allow customers to move between banks in order to benefit from the best offers on the market, and the banks should complete the account transfer within a period of 13 days.

READ ALSO: Can you pay taxes in Spain with a foreign bank account?

How to change bank accounts in Spain

It really is very simple (and entirely free) to change bank accounts in Spain.

All you need to do is, firstly, choose your new bank and open an account there. Once you’re registered customer there, you’ll need to request an account transfer with your new bank. In Spanish this is known as a traslado de la cuenta.

You’ll also need to choose a date.

Then, after that, the banks take care of everything. Your old bank will transfer your balance, bills and even any direct debits out standing orders that you had set up on your old account. You can specify which ones you do or don’t want transferring over.

All of this is free, according to Banco de España regulations, as long as both banks are in Spain. It really is that simple!

There’s a handy video guide by Banco de España below that walks you through the process:

The steps to change banks accounts in Spain

So, in summary, the steps are:

  1. Open account at new bank.
  2. Ask for account transfer at new bank.
  3. Indicate the date you want to make the change.
  4. The banks take care of the rest!

READ ALSO: LISTED: The Spanish bank accounts you can open with just a NIE number

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