Mortgages are going down, but food, energy and telecommunications are going up

The year 2025, which starts tomorrow Wednesday, starts increases in the prices of major expenses of consumers: in food and electricity as a result of the withdrawal of the VAT reduction, but also in the rates of natural gas and the main telecommunications companies. Mortgages are one of the few expenses that are going down.

The food prices rise from next Wednesday because the VAT on olive oil, bread, milk, eggs, cheese, fruit, vegetables, legumes and grains will increase from 2 to 4%. For seed pastes and oils the rate will increase from 7.5 to 10%. In this way, VAT cuts to alleviate the price crisis caused by the war in Ukraine are put to an end and the usual level is restored.

Consumers’ wallets will also notice an increase the electricity billsince his VAT return to 21%following the cuts implemented during the crisis, although the ban on interrupting water, electricity and gas supplies for vulnerable consumers will remain in place. On the fixed part of the electricity bill, the rates agreed by the government will increase by 39% compared to 2024. On the other hand, tolls, the other regulated part of the bill set by the National Markets and Competition Commission (CNMC), are increasing , fell by an average of 4.4%.

As for the natural gas bill refers, the individual rate of last resort (TUR) will increase by 10% compared to the price set on October 1 due to the arrival of winter, while the neighborhood TUR will increase between 13.5% and 18%, 3%.

The three main operators of the telecommunications and telephone sector They have also announced increases in their rates. Movistar will increase its prices by approximately 5% from January 13. In turn, the increase will be approximately 3% for both Vodafone and Orange. Vodafone will apply the new rates from Wednesday, Orange will do so from January 27.

Another expense whose increase will be noticed by families is that of municipal taxesespecially waste collection, which will become significantly more expensive in many municipalities and associations by 2025 due to European Union and Spanish government regulations. In Vitoria-Gasteiz this percentage will therefore increase by 100%, in Donostia-San Sebastián by 26.54%, in Bilbao by 5% and in the municipality of Pamplona/Iruña by 4%.

As for the rest of the municipal rates and taxes, these will also be increased, albeit to varying degrees in each capital. In Vitoria this increase will amount to an average of 4%, and in Donostia 3.9%. In Bilbao, the IBI will increase by about 2% on average, while the Economic Activities Tax (IAE) will increase by 5%. Finally, in Pamplona the contribution tax (30%) will be the biggest increase. The reason for this is to update the cadastral value of properties, which has not happened for 25 years.

Homes: purchase, rental and mortgages

He house price It also rises continuously. According to data published by the valuation company Tinsa, the average price of new and used homes in the Basque Country in the fourth quarter of 2024 will be 2.6% more expensive than specifically in the same period of the previous year 2,400 euros per square meter. Gipuzkoa is the most expensive area, at €2,564/m2, followed by Bizkaia (2,453) and Álava (2,088).

On the other hand, the some costs that are reduced this is 2025 mortgages. The 12-month Euribor has broken through in recent months and is at around 2.4%, the lowest level since September 2022. Experts also expect that the European Central Bank will continue to cut interest rates in the coming months in 2025, the most important index for calculating mortgages can continue on its downward path and bring joy to those who have to renew their mortgage.

For his part, the rent will also increasebut contracts signed after the entry into force of the Housing Act, on May 25, 2023, must use the new index drawn up by the National Statistical Institute (INE) and which will be published next Thursday, January 2. An increase in the CPI or the Competitiveness Guarantee Index may apply to previously signed contracts.

As for the public transportthe Basque Parliament has chosen to maintain a 20% reduction in 2025. This is in addition to the 30% discounts that the Ministry of Transport has extended until June 30, as well as the free Renfe passes for Cercanías and Distancia Conventional Average.

Pensions and salaries

Pensioners will have to cope with all these expenses with a 2.8% increase in their pension, in line with average inflation between December 2023 and November 2024, which means an extra 600 euros per year for people on an average pension. Minimum pensions will increase by 6%, an increase that will reach 9.1% in the case of pensioners with a dependent spouse and widows with family responsibilities. The non-contributory pensions and the minimum vital income (IMV) are revalued by 9%, bringing the guaranteed annual income to 7,910 euros.

However, the interprofessional minimum wage and the remuneration of civil servants and state government employees will start this year 2025 frozen. The SMI amounts to 15,876 gross euros, divided into 14 payments of 1,134 euros, pending the experts appointed by the Ministry of Labor to finalize their recommendation for an increase.

As for the salaries of government employees of state administrations will remain frozen until a new agreement is negotiated between the Ministry of Digital Transformation and Public Services and the trade unions, although a 0.5% increase will be approved in January to compensate for the 2024 CPI, retroactively effective from January 2024.