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As 2025 limps towards the finish line, people in Spain are already eyeing 2026 with a mixture of hope and dread, wondering what the new year will do to their bank accounts. The short answer is that most things are going up, but at least there's one piece of good news for anyone who uses public transport.

 

Housing remains the elephant in the room. After a 2025 that saw rental and purchase prices shoot through the roof, 2026 looks set to bring more of the same, though hopefully not quite as dramatically. Real estate analysts at Fotocasa reckon rental prices will climb anywhere between 3% and 8% next year, which is hardly music to tenants' ears.

 

There's another nasty surprise waiting for renters as well. All those leases that were signed just after the coronavirus pandemic at bargain prices are about to expire in 2026. Landlords will seize the opportunity to bring contracts up to current market rates, potentially adding around €1,735 to annual rent bills according to the Ministry of Consumer Affairs. The department estimates that 1.6 million contracts could be hit by this update.

 

Buying a place isn't going to be any easier either. After the double-digit price increases seen throughout 2025, the property market shows no signs of cooling down. BBVA and Bankinter are both predicting purchase price increases of around 7% next year, keeping the dream of homeownership firmly out of reach for many.

 

Even those who already have mortgages aren't getting off lightly. The Euribor has been creeping upwards for four consecutive months, and anyone whose mortgage gets reviewed every six months is already seeing higher payments. If forecasts prove accurate and the rate stabilises in line with the ECB's official interest rates, more homeowners will feel the pinch from the second half of 2026 onwards.

 

Meanwhile, electricity costs will kick off the year with a hefty increase to the fixed portion of your bill. The Ministry for Ecological Transition has proposed a 10.5% hike in charges, with the National Commission for Markets and Competition suggesting a 4% increase in tolls.

 

Energy suppliers are also expected to start passing on the anti-blackout surcharge mandated by Red Eléctrica in 2026, something they couldn't manage this year. Despite all this doom and gloom on the fixed costs, the ministry believes that, overall, electricity bills might actually fall by 5% to 10% for households because energy prices themselves should decrease compared to 2025.

 

Water bills are getting a bump too, at least in the big cities. Madrid residents will see a 3% increase and Barcelona a 2.9% rise, though in fairness we're only talking about an extra euro or so every two months in Madrid's case. Hardly catastrophic, but it all adds up.

 

The cost of living overall will keep climbing for another year, although at least inflation should ease off a bit. Analysts at Funcas estimate it'll hit around 2.4% in 2026, down from 2.7% in 2025. Food prices are expected to increase by 2.5%, with unprocessed food jumping by 5.1%.

 

Private health insurance is set to sting wallets once again. After a brutal 10% price increase in 2025, all signs point to another significant hike in premiums come January 2026.

 

Now for the good news. Public transport fares are staying frozen, one of the few silver linings in an otherwise expensive cloud. The government approved the extension of transport subsidies at its last Council of Ministers meeting in 2025, meaning state-owned public transport like commuter rail, medium-distance trains and certain bus routes will maintain their fare reductions.

 

Regional public transport will also stay affordable, provided the local administrations keep stumping up their share. The regional governments of Madrid, Valencia, Catalonia and Andalucia have already confirmed they'll continue funding their portion of the reduction, so commuters in those areas can breathe easy.

 

There’s bad news for air travellers though. The airport fee charged by AENA will increase by 6.44% in 2026, a cost that airlines will almost certainly pass on to passengers one way or another.

 

On the income side of things, pensioners have something to smile about. Contributory public pensions and civil service pensions will increase by 2.7% from January 1, 2026. Minimum pensions are getting an even bigger boost, rising by at least 7% or 11.4% when there are dependents involved. Non-contributory pensions will jump by 11.4%, the same rate that applies to the minimum living income.

 

The increase in minimum wage is still up in the air, but everything points to a rise of at least 3.1%. Civil servants are looking at a 1.5% salary increase starting January 1, which could stretch to 2% depending on how inflation behaves.

 

Social Security contributions are going up as part of the ongoing pension reform approved in 2023. The intergenerational equity mechanism, that extra contribution to fill the pension reserve fund that doesn't actually increase your pension, will rise from 0.8% to 0.9% of the contribution base. The solidarity contribution paid on salaries above the maximum contribution base of €5,102 per month is also increasing by between 0.23 and 0.29 percentage points.

 

In the tax department, deductions for buying electric vehicles and installing charging points will continue through 2026. Some municipalities might also increase their rubbish collection fees as they readjust their calculations for how the service is taxed.

 

So there you have it. Your wallet is going to feel lighter in 2026 across almost every category, from housing and utilities to groceries and health insurance. At least your commute won't get any more expensive and if you're a pensioner, you'll have a bit more coming in to help offset some of the increases.

 

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