January & February Newsletter: More Systems, More Scrutiny, More Strategy

Opening Note

I owe you an apology. January slipped past without an edition. Rather than rush something out, I’ve combined January and February into this sharper overview.

The year has started with a clear theme: more oversight, more regulation, and more structural change. None of it dramatic in isolation. But collectively, it signals the direction Spain and the EU are moving in.

Let’s break it down properly.

Global Snapshot

The global picture feels calmer than the turbulence of the last few years. Inflation has softened in many regions and markets are more stable.

That said, we are not in a carefree environment. Geopolitical tensions remain, and governments worldwide are shifting from crisis management to structural control. Digital oversight, migration management, supply chain security and industrial policy are now front and centre.

In other words, fewer shocks, more systems.

EU News

Entry Exit System Rolling Out

The EU’s biometric Entry Exit System is now operational at major Spanish airports.

For years, Schengen enforcement relied heavily on manual passport stamps and human discretion. That flexibility has effectively ended. Entry and exit are now digitally recorded and cross checked automatically.

This will create inconvenience for those who have quietly relied on overstaying the 90 day rule without consequences. The margin for error is disappearing.

If someone has been living part time in Spain while technically overstaying, this is the moment to regularise the situation properly. The system will not forget.

ETIAS Delayed

ETIAS is the EU’s upcoming travel authorisation system for visa exempt visitors. It will require travellers, including UK nationals, to apply online before travelling to Schengen, similar to the US ESTA.

It has been delayed again and is now expected in late 2026, with enforcement likely in 2027.

For now, nothing changes. But the direction is clear. Travel across Europe is becoming more pre authorised and centralised.

Spain National News

Immigration Regularisation

Spain has approved an extraordinary regularisation process for undocumented migrants who applied for asylum before the end of 2025.

This is not aimed at Europeans who have fallen into technical irregularity. It is primarily designed for undocumented migrants from outside Europe who are already embedded in Spain.

Unsurprisingly, it has caused controversy. At a time when Europe is wrestling with mass migration pressures, Spain has chosen to formalise a large number of individuals already here.

From a practical standpoint:

• Some labour shortages may ease.

• Social services will feel the pressure.

• The political debate around migration will intensify.

It is a significant move, and one that reflects Spain’s current ideological direction.

Increased Bank Reporting

From January, banks must report all transactions involving self employed individuals and companies, regardless of amount.

Previously, only transfers above certain thresholds were automatically declared. That buffer has now gone.

We recently covered this in detail on the MAE Consulting blog. The key takeaway is simple: financial privacy is steadily narrowing.

This feels like overreach to many, but it is consistent with the state’s increasing digital visibility over economic activity.

If you run a business, operate as autónomo, or move funds regularly, assume everything is visible. Structure accordingly.

Minimum Wage Increase

The proposed minimum wage increase of just over 3 percent will likely be confirmed.

Beyond payroll costs, this also affects immigration thresholds. The Digital Nomad Visa income requirement is linked to minimum wage multiples. Expect slightly higher required earnings for new applicants.

Small adjustment, but relevant.

National €60 Transport Pass

Spain has introduced a nationwide €60 monthly transport pass covering regional trains and state buses.

For residents who move around Spain regularly, this is genuinely useful. It reduces cost of mobility and encourages domestic travel.

A rare example of a policy that feels practical rather than bureaucratic.

Andalucía Regional News

New Housing Law

Andalucía’s updated housing framework is now active. The aim is to increase affordable housing supply and coordinate development more tightly.

The region continues to position itself as tax competitive and investor friendly, particularly compared to other parts of Spain.

The balancing act is clear: attract capital, while attempting to manage housing pressure.

Whether supply can catch up with demand remains the key question.

Record Tourism

2025 closed with record visitor numbers and strong spending across Andalucía.

Tourism remains the economic engine of the region. However, rising visitor numbers inevitably feed into housing tension and infrastructure strain.

The quality over quantity narrative is being pushed hard. Time will tell how effectively that is implemented.

Málaga Province News

Property Prices Remain Elevated

Málaga property prices are still at record levels.

Demand from both domestic and foreign buyers continues to exceed supply. Rental availability remains tight.

For investors, the fundamentals remain strong. For residents, affordability remains the central pressure point.

Tech Investment Accelerates

Málaga continues its transition beyond tourism. Major semiconductor and research investment has been confirmed in the TechPark.

This strengthens the long term economic profile of the province and diversifies risk.

Higher skilled jobs inevitably support higher property values and broader economic resilience.

Local Municipal News

Málaga’s 17,000 Home Plan

Málaga City has unveiled a long term plan for approximately 17,000 new homes, with a significant portion designated as protected housing.

It is ambitious. It acknowledges the problem.

Delivery and infrastructure capacity will determine whether it meaningfully shifts the market.

Coastal Regeneration in Marbella

Beach stabilisation works are beginning in parts of Marbella.

Short term disruption. Long term environmental and property value support.

Upcoming Events – March 2026

• Málaga Film Festival

• Transfiere Innovation Forum

• Semana Santa begins 29 March

Expect heavy tourism, strong hospitality activity, and increased city centre congestion.

Private Sector & Business

Business Creation Remains Strong

Málaga continues to see high levels of company formation.

The environment is competitive but dynamic. Professional services, tech, hospitality and construction remain particularly active.

Digital Invoicing Delayed

Mandatory e invoicing has been postponed until 2027.

This is breathing room, not cancellation. Spain is moving toward full digital fiscal control.

Preparation now will save stress later.

Why This Matters

• Border enforcement is becoming automated and unforgiving.

• Financial transparency is expanding quickly.

• Migration policy is becoming more politically charged.

• Housing remains the structural weakness in the region.

• Málaga’s economy is diversifying in a meaningful way.

Closing Note

The pattern is clear. More systems. More oversight. More long term planning required.

Spain remains an attractive place to live and invest, particularly Andalucía. But the casual, informal flexibility that many relied on a decade ago is fading.

If you are living here, investing here, or building here, do it properly. Structure matters more than ever.

As always, if you need clarity or guidance, MAE Consulting is here to help.