Government bonds have once again become a viable investment option. After years of historically low interest rates, Spanish Treasury bills are yielding around 2.5%, German Bunds are offering nearly 2.7% on 10-year maturities, and British Gilts are yielding over 4% on long-term maturities. How can a Spanish investor access these products? Here’s what you need to know.
Contents
- Types of Government Debt Available
- Current Yields (April 2026)
- How to invest? Available options
- Platform comparison
- Taxation of government bonds
- Risks you should be aware of
- Frequently Asked Questions
Types of public debt available
Not all public debt is the same. These are the main instruments available to Spanish investors:
Treasury Bills (Spain)
Treasury Bills are short-term debt instruments (3, 6, 9, and 12 months) issued by the Spanish Treasury. They are purchased at a discount and redeemed at par upon maturity. They are the Spanish equivalent of U.S. T-Bills.
Government Bonds and Obligations (Spain)
State Bonds have maturities ranging from 2 to 5 years; Obligations, from 10 to 30 years. They pay a semi-annual coupon. They are more sensitive to interest rate fluctuations than Treasury Bills.
Bund (Germany)
The German Bund is the benchmark for European sovereign debt. It is considered the risk-free asset in euros. Available in 2-year (Schatz), 5-year (Bobl), and 10-year (Bund) maturities. Currently, the 10-year Bund yields around 2.7%.
Gilt (United Kingdom)
Gilts are British government bonds denominated in pounds sterling (GBP). The 10-year Gilt currently yields around 4.5%, making it one of the most profitable sovereign debt instruments in developed countries. They carry EUR/GBP exchange rate risk.
T-Bills and Treasury Bonds (USA)
U.S. Treasury debt denominated in USD. Short-term T-Bills yield around 4.3%, while the 10-year Treasury yield is close to 4.2%. Only recommended if you have exposure to the dollar or want to diversify your currency holdings with hedging.
Current Yield (April 2026)
| Instrument | Country | Currency | Yield | Term |
|---|---|---|---|---|
| Treasury Bill | Spain | EUR | ~2.50% | 12 months |
| Government Bond | Spain | EUR | ~3.00% | 10 years |
| Bund | Germany | EUR | ~2.70% | 10 years |
| Gilt | United Kingdom | GBP | ~4.50% | 10-year |
| Treasury Bond | USA | USD | ~4.20% | 10 years |
Indicative yields as of April 1, 2026. Secondary market yields change daily.
How to invest? Available options
There are three main ways to invest in government debt from Spain:
1. Directly through the Spanish Treasury (Spanish debt only)
The Spanish Treasury allows you to purchase Letras, Bonos, and Obligaciones directly at its periodic auctions through tesoro.es. There are no brokerage fees. The process requires a digital certificate and is somewhat more involved than using a broker.
- Minimum amount: €1,000
- No purchase or custody fees
- Spanish sovereign debt only
- Interest is paid into a bank account
2. Through a broker (secondary market)
Brokers allow you to buy and sell bonds on the secondary market with immediate liquidity. You can access debt from multiple countries. Freedom24, Interactive Brokers, and DeGiro are the most popular options.
3. Through bond ETFs
Fixed-income ETFs track government bond indices. They are the simplest and most diversified way to invest in government debt. iShares, Xtrackers, and Amundi offer European Treasury Bill ETFs with TERs starting at 0.07%.
Platform Comparison
Freedom24 — best option for direct US/European bonds
Freedom24 offers access to secondary market bonds from multiple countries. Its fixed-income interface is quite intuitive, allowing you to filter by maturity, coupon, and country. It is the most accessible platform for Spanish investors looking to buy U.S. T-Bills or Treasuries directly.
- Commission: 0.02% of face value (minimum €2)
- Markets: US, Europe, Russia (restricted), Israel
- Custody in Euroclear
Trade Republic — best for bond ETFs starting at €1
Trade Republic offers an extensive catalog of fixed-income ETFs and allows you to set up monthly savings plans in bond ETFs starting at €1/month with €0 in fees. For those who prefer diversified exposure to government bonds rather than individual bonds, this is the most cost-efficient option.
- Available ETFs: iShares EUR Govt Bond, Xtrackers Eurozone, Amundi Prime Euro Govies...
- One-time purchase fee: €1 flat fee
- Savings plans: no commission
Interactive Brokers — for those who want full access
Interactive Brokers is the professional option. Direct access to U.S. Treasuries (T-Bills, T-Notes), Gilts, Bunds, and debt from dozens of countries. No minimum investment in bonds and very competitive fees. The platform has a steeper learning curve.
Public Treasury (tesoro.es) — for Spanish debt only, no fees
The free option for those who only need Spanish Treasury Bills and Bonds. Requires registration with a digital certificate or DNIe. The Treasury account charges neither purchase nor custody fees, making it unbeatable in terms of costs for Spanish debt.
Taxation of Public Debt
It is important to fully understand the taxation of bonds in Spain:
- Coupons (periodic interest): taxed as investment income at the savings tax rate (19–27% depending on the bracket).
- Gain or loss upon sale before maturity: also taxed as investment income (not as capital gains).
- Treasury bills: the implicit yield (difference between purchase price and face value) is fully taxed in the year of maturity.
- Withholding tax: financial institutions withhold 19% on returns. With direct purchases from the Treasury, there is no withholding tax (you report it on your income tax return).
Risks you should be aware of
Public debt is not risk-free:
- Interest rate risk: if rates rise, the price of bonds already issued falls. This only affects you if you sell before maturity. If you hold until maturity, you receive the agreed rate.
- Currency risk: Gilts in GBP and Treasuries in USD involve exposure to EUR/GBP and EUR/USD. An appreciation of the euro would reduce your effective return in euros.
- Reinvestment risk: when short-term bonds mature, new rates may be lower. With longer-term bonds, this risk is lower.
- Credit risk: Technically present, though minimal for debt from developed countries. Spain has a Baa1/A- rating (solid investment grade).
Frequently Asked Questions
Are Treasury Bills better than a bank deposit?
It depends. Treasury Bills have a sovereign guarantee (more solid than the FGD for large amounts), but their current yield (~2.5%) is lower than some interest-bearing accounts (3.50%). For amounts over €100,000 where the FGD does not cover the full amount, Treasury Bills are a very viable alternative to consider.
Can I buy Treasury Bills for small amounts, such as €1,000?
Yes. The minimum amount at the Public Treasury is €1,000, and the increments are in multiples of €1,000. With brokers like Freedom24, the minimum may be lower depending on the specific bond.
Do I have to pay taxes if I buy directly from the Treasury?
Yes, but without withholding tax. When you buy directly from the Treasury, it does not withhold tax. You must report the returns on your income tax return. This can be advantageous for liquidity (you don’t “advance” the 19% to the government until filing).
Check out our comparison of all government debt products available on APYData with rates updated daily.