Spanish households raised their public debt holdings to almost €26 billion in August, the highest level since April 2025, according to the Bank of Spain. The reason is simple: Treasury Bills now pay between 2.6% and 3% a year, a rate that appeals to safety-seeking savers. On the Costa del Sol, though, many investors still prefer bricks and mortar, which combines rental income with capital growth. We compare both options with real figures.
Households are ramping up their bet on public debt
Spanish households held €25.97 billion in public debt of all maturities in August, the highest figure in 16 months. Of that, €22.509 billion sat in Treasury Bills (3- to 12-month maturities), rising for the sixth straight month. Even so, households are no longer the top holder of Treasury Bills: since February 2025 that spot has belonged to foreign investors, who hold €33.666 billion versus households' €22.509 billion.
The Treasury has made the most of savers’ appetite: for 2026 it plans to issue €285.693 billion in debt, up 4.2% on 2025, of which €108.758 billion will be Treasury Bills, almost 5.9% more. The Ministry of Economy attributes the strategy to “the good state of the Spanish economy and budget discipline.”
How much do Treasury Bills pay today?
These are the reference yields the Treasury is working with for its November 2026 Treasury Bill auctions, a default-risk-free product with short-term liquidity:
| Maturity | Yield |
|---|---|
| 3-month Bill | 2.645% |
| 6-month Bill | 2.798% |
| 9-month Bill | 2.968% |
| 12-month Bill | 3.026% |
These are fixed, known-in-advance returns, but they generate no recurring income and do not appreciate like a physical asset: at maturity, the investor gets back the capital plus interest and has to decide where to reinvest it.
The other side: how much property earns on the Costa del Sol
Property on the Costa del Sol combines two sources of return that no Treasury Bill offers: rental income, with demand on the rise — competition for a rental flat in Malaga has multiplied fivefold over the past year — and capital appreciation, which according to the Tinsa index rose 17.2% on the Mediterranean coast through September.
According to EVS Property’s market report, updated in October 2026 from more than 8,200 active listings across the Costa del Sol, the median home price in the area stands at €650,000, with notable differences between municipalities:
| Area | Median price | Median €/m² |
|---|---|---|
| Marbella | €950,000 | €6,096 |
| Estepona | €637,000 | €4,750 |
| Fuengirola | €560,000 | €5,417 |
| Mijas | €550,000 | €4,367 |
| Málaga city | €625,000 | €4,955 |
These are asking prices, not closing prices, but they show the area’s range well: from Mijas or Estepona, with more accessible entry points, to Marbella, where the median price per square metre tops €6,000. The full report, covering every municipality on the Costa del Sol, is updated every month.
Treasury Bills or property: pros and cons of each option
| Treasury Bills | Property | |
|---|---|---|
| Liquidity | High: matures in months | Low: selling a home takes months |
| Risk | Very low: backed by the State | Market risk: prices can fall |
| Type of return | Fixed, known in advance | Variable: rent plus appreciation |
| Taxation | Taxed as investment income | Taxed on rental income and, on sale, on the capital gain |
Neither option cancels out the other: Treasury Bills bring safety and liquidity for the short term, while property offers recurring income and long-term inflation protection. Many investors combine both in their portfolio.
What this means for an investor in Marbella, Málaga or Estepona
If your horizon is a few months and safety comes first, Treasury Bills remain a reasonable choice for your cash cushion. But if you’re after a return that combines recurring income with mid-term appreciation, areas such as Marbella, Estepona or Málaga offer a market with sustained demand, both for sale and for rent. At EVS Property we look at each case and help you find the property that best fits your investment strategy.
Frequently asked questions
Is investing in Treasury Bills safer than in property?
In default-risk terms, yes: Treasury Bills are backed by the State and are more liquid. Property carries market and liquidity risk, but offers recurring income and inflation protection that Treasury Bills do not.
What yield do 12-month Treasury Bills pay today?
In the auction scheduled for 3 November 2026, the 12-month Treasury Bill offers a reference yield of 3.026%, the highest rate of all the maturities.
Does it pay to buy to let on the Costa del Sol in 2026?
Rental demand remains very active in the area, which supports recurring income. It’s worth analysing each area and property type, because returns vary widely between Marbella, Estepona or Mijas.
Which Costa del Sol municipality has the highest median price per m²?
Marbella, with a median of €6,096 per square metre, according to EVS Property’s market report for October 2026.
Can I combine public debt and property in my portfolio?
Yes. They have different risk profiles: Treasury Bills provide short-term liquidity and safety, while property offers recurring income and long-term appreciation. Combining them is a common way to diversify.
What next? The most useful thing after reading is to look at the real market: browse properties by city or tell us on WhatsApp what you are looking for — area, budget, timing — and we will prepare a tailored selection, with no obligation.
You may also find useful: sell your property invest on the Costa del Sol free valuation monthly price report
