SMI: Spain's Minimum Wage and the Thresholds Tied to It
SMI is Spain's minimum wage, and it drives everything IPREM does not: the digital nomad visa threshold, the salary floors in employment contracts, startup filings. Unlike the frozen IPREM, SMI rises almost every year, so these thresholds need rechecking before every application and every renewal.
This page covers the thresholds pegged to the minimum wage. If your case is the non-lucrative visa, family reunification, studies or arraigo, you need the other indicator, covered on the income requirement and IPREM page.
Contents
- What SMI is
- SMI for 2026
- Immigration thresholds pegged to SMI
- How SMI differs from IPREM
- SMI in employment relationships
What SMI is
SMI (Salario Mínimo Interprofesional) is the state-set floor for full-time pay, uniform across all sectors and occupations. The government fixes it every year by royal decree under article 27 of the Workers’ Statute, after consulting trade unions and employer associations. For immigration purposes SMI matters because several key income thresholds are expressed as percentages of it rather than of IPREM.
SMI for 2026
SMI in 2026: €1,221 per month in 14 payments, €17,094 per year. Digital nomad threshold: €34,188 per year for the applicant (200% SMI)current for 2026
The figures in force were set by Real Decreto 126/2026:
| Measure | Amount |
|---|---|
| Per day | EUR 40.70 |
| Per month (14 payments) | EUR 1,221 |
| Per year | EUR 17,094 |
| Per month recalculated over 12 payments | around EUR 1,424.50 |
Three practical notes. First, this is a gross figure, before social security contributions; SMI earners are nonetheless exempt from IRPF. Second, the increase applies retroactively from 1 January 2026 even though the decree was published in February, so employers must pay the difference for the elapsed months. Third, the decree is renewed every year, and every threshold pegged to SMI moves with it.
Immigration thresholds pegged to SMI
| Procedure | Formula |
|---|---|
| Digital nomad visa | 200% of annual SMI for the applicant + 75% of SMI for the first family member + 25% for each further one |
| Employed work permits (cuenta ajena) | The contract salary for full-time work cannot fall below SMI in annual terms; for part-time contracts the total remuneration must still reach the full-time SMI |
| Family reunification involving minors | A stable income source at SMI level is deemed sufficient even where the 150% + 50% IPREM formula is not met |
| Startup visa (entrepreneur visa) | In UGE-CE practice the sufficiency of the applicant’s means is likewise benchmarked against SMI; verify the exact percentage against the criteria in force at filing |
Worked figures for the digital nomad visa at the 2026 SMI:
| Household | Annual | Monthly (indicative) |
|---|---|---|
| Single applicant (200% SMI) | EUR 34,188 | around EUR 2,850 |
| Applicant + 1 family member (275% SMI) | EUR 47,008.50 | around EUR 3,917 |
| Applicant + 2 family members (300% SMI) | EUR 51,282 | around EUR 4,274 |
The figures are indicative: they are recalculated with every SMI rise, so check the decree in force before filing and before every renewal.
How SMI differs from IPREM
| SMI | IPREM | |
|---|---|---|
| What it is | The minimum wage | An income indicator for benefits and thresholds |
| How it is set | A dedicated royal decree every year | The national budget law |
| Trajectory | Rises almost every year (up more than 60% since 2018) | Frozen since 2023 at EUR 600 per month |
| Where it applies in immigration | Nomad visa, employment contracts, startup, the softened rule for minors | NLV, family reunification, studies, arraigo, job-seeker permits |
The practical takeaway mirrors the IPREM page: if your threshold runs off SMI, budget for the requirement to rise every year. This bites hardest at nomad visa renewals: income that cleared the bar at the initial filing can sit below the new threshold two or three years later.
SMI in employment relationships
SMI is not only an immigration benchmark; it is also the legal floor for pay, and disputes around it come up regularly for foreign workers.
Contracting below SMI is not possible: if a collective agreement or an individual contract provides less, the amount is automatically lifted to the minimum. Payment in kind (housing, meals) cannot reduce the cash component below SMI. For part-time work the minimum applies pro rata to the hours worked. Where a worker’s total annual remuneration already exceeds the annual SMI, the employer may offset supplements against the increase (the compensación y absorción rules), and this is where most disagreements arise over which supplements can be absorbed. Finally, because the annual rise is retroactive, a worker is entitled to claim the difference back to 1 January if the employer kept paying at the previous year’s rates.
If your salary sits below the minimum, or your employer has not settled the difference after an SMI rise, that is grounds for a claim: these are exactly the questions I handle in labour dispute consultations.
Common mistakes in SMI-based calculations
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Calculating from the monthly figure instead of the annual one. 200% of 1,221 euros gives 2,442 euros per month, but UGE-CE practice works from the annual amount: 200% of 17,094 euros, that is 34,188 euros per year, or around 2,850 euros per month. The gap is material, and the annual base is the one to use.
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Filing on last year’s SMI. The decree comes out in February with retroactive effect from 1 January. An application filed early in the year on the old figures can fall short of the new threshold.
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Ignoring threshold growth at renewal. A contract that cleared the requirements at the initial filing can sit below the current minimum by renewal time: SMI will have risen once or twice in between.
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Comparing net income against the threshold. Thresholds are matched against gross amounts. Applicants who evidence post-tax inflows into their account understate their own figures.
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Confusing SMI with IPREM. The two indicators play similar roles but differ sharply in size and trajectory. Picking the wrong one means getting the required amount wrong by tens of percent.
Frequently asked questions
What is the minimum wage in Spain in 2026?
Real Decreto 126/2026 set the SMI at 1,221 euros gross per month in 14 payments, which comes to 17,094 euros per year, or roughly 1,424.50 euros per month recalculated over 12 payments. The rise was 3.1% on 2025 and applies retroactively from 1 January 2026.
How much income does the digital nomad visa require?
200% of the annual SMI for the main applicant: at the 2026 SMI that is 34,188 euros per year, or around 2,850 euros per month. Add 75% of SMI for the first family member and 25% for each further one. Because SMI rises almost every year, recheck the threshold as of your filing and renewal dates.
Is SMI a gross or net figure?
Gross: 1,221 euros per month is the amount before social security contributions are deducted. SMI earners are nonetheless exempt from income tax (IRPF). Immigration thresholds are also compared against the applicant's gross income: consulates and the UGE-CE assess pre-tax figures, not what lands in the account.
How is SMI different from IPREM?
SMI is the minimum wage, raised by the government almost every year through a dedicated royal decree. IPREM is an income indicator for benefits and part of the immigration thresholds, frozen since 2023 at 600 euros per month. SMI drives the nomad visa and employment contracts; IPREM drives the NLV, family reunification, studies and arraigo.