| Tangible assets |
Tangible assets a) Changes The changes in Tangible assets in the consolidated balance sheets were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | EUR million | | Tangible assets | | Of which:
For leasing | | For own use | Leased out under
an operating
lease | Investment
property | Total | | For own use | Leased out under
an operating
lease | Investment
property | Total | | Cost | | | | | | | | | | | Balance at 1 January 2023 | 26,570 | | 25,166 | | 1,580 | | 53,316 | | | 4,692 | | — | | — | | 4,692 | | | Additions / disposals (net) due to change in the scope of consolidation | 11 | | 37 | | — | | 48 | | | (13) | | — | | — | | (13) | | | Additions / disposals (net) | 1,122 | | 742 | | (34) | | 1,830 | | | 125A | — | | — | | 125 | | | Transfers, exchange differences and other items | (1,460) | | (641) | | 30 | | (2,071) | | | 33 | | — | | — | | 33 | | | Balance at 31 December 2023 | 26,243 | | 25,304 | | 1,576 | | 53,123 | | | 4,837 | | — | | — | | 4,837 | | | Additions / disposals (net) due to change in the scope of consolidation | 28 | | (1,192) | | — | | (1,164) | | | — | | — | | — | | — | | | Additions / disposals (net) | 730 | | (1,716) | | (17) | | (1,003) | | | 179A | — | | — | | 179 | | | Transfers, exchange differences and other items | (1,345) | | 1,003 | | (104) | | (446) | | | (235) | | — | | — | | (235) | | | Balance at 31 December 2024 | 25,656 | | 23,399 | | 1,455 | | 50,510 | | | 4,781 | | — | | — | | 4,781 | | | Additions / disposals (net) due to change in the scope of consolidation | 4 | | — | | 7 | | 11 | | | — | | — | | — | | — | | | Additions / disposals (net) | 326 | | (2,603) | | (58) | | (2,335) | | | (40)A | — | | — | | (40) | | | Transfers, exchange differences and other items | (1,845) | | (1,743) | | 188 | | (3,400) | | | (450) | | — | | — | | (450) | | | Balance at 31 December 2025 | 24,141 | | 19,053 | | 1,592 | | 44,786 | | | 4,291 | | — | | — | | 4,291 | | | | | | | | | | | | | Accumulated depreciation | | | | | | | | | | Balances at 1 January 2023 | (12,892) | | (5,578) | | (172) | | (18,642) | | | (2,265) | | — | | — | | (2,265) | | | Disposals due to change in the scope of consolidation | 7 | | — | | — | | 7 | | | 7 | | — | | — | | 7 | | | Disposals | 284 | | 2,540 | | — | | 2,824 | | | 160 | | — | | — | | 160 | | | Charge for the year | (1,689) | | — | | (11) | | (1,700) | | | (580) | | — | | — | | (580) | | | Transfers, exchange differences and other items | 1,653 | | (2,744) | | (16) | | (1,107) | | | 69 | | — | | — | | 69 | | Balance at 31 December 2023 | (12,637) | | (5,782) | | (199) | | (18,618) | | | (2,609) | | — | | — | | (2,609) | | | Disposals due to change in the scope of consolidation | — | | 686 | | — | | 686 | | | — | | — | | — | | — | | | Disposals | 672 | | 3,214 | | — | | 3,886 | | | 196 | | — | | — | | 196 | | | Charge for the year | (1,544) | | — | | (9) | | (1,553) | | | (460) | | — | | — | | (460) | | | Transfers, exchange differences and other items | 890 | | (2,902) | | 46 | | (1,966) | | | 59 | | — | | — | | 59 | | Balance at 31 December 2024 | (12,619) | | (4,784) | | (162) | | (17,565) | | | (2,814) | | — | | — | | (2,814) | | | Disposals due to change in the scope of consolidation | — | | — | | — | | — | | | — | | — | | — | | — | | | Disposals | 663 | | 2,428 | | — | | 3,091 | | | 177 | | — | | — | | 177 | | | Charge for the year | (1,323) | | — | | (8) | | (1,331) | | | (405) | | | — | | (405) | | | Transfers, exchange differences and other items | 1,150 | | (1,917) | | (32) | | (799) | | | 381 | | — | | — | | 381 | | Balance at 31 December 2025 | (12,129) | | (4,273) | | (202) | | (16,604) | | | (2,661) | | — | | — | | (2,661) | |
A. Includes contract extensions on operating leases and repurchases. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | EUR million | | Tangible assets | | Of which:
For leasing | | For own use | Leased out under
an operating
lease | Investment
property | Total | | For own use | Leased out under
an operating
lease | Investment
property | Total | | Impairment losses | | | | | | | | | | Balance at 1 January 2023 | (189) | | (33) | | (379) | | (601) | | | (14) | | — | | — | | (14) | | | Impairment charge for the year | (113) | | (29) | | (12) | | (154) | | | (38) | | — | | — | | (38) | | | Releases | 4 | | 11 | | 4 | | 19 | | | 3 | | — | | — | | 3 | | | Disposals due to change in the scope of consolidation | — | | — | | — | | — | | | — | | — | | — | | — | | | Disposals | 36 | | — | 4 | | 40 | | | 5 | | | | 5 | | | Exchange differences and other | 64 | | 47 | | (38) | | 73 | | | (1) | | — | | — | | (1) | | Balance at 31 December 2023 | (198) | | (4) | | (421) | | (623) | | | (45) | | — | | — | | (45) | | | Impairment charge for the year | (276) | | (70) | | (81) | | (427) | | | (31) | | — | | — | | (31) | | | Releases | 34 | | 3 | | 8 | | 45 | | | 10 | | — | | — | | 10 | | | Disposals due to change in the scope of consolidation | — | | — | | — | | — | | | — | | — | | — | | — | | | Disposals | 53 | | — | | — | | 53 | | | 19 | | — | | — | | 19 | | | Exchange differences and other | (14) | | 32 | | 76 | | 94 | | | (2) | | — | | — | | (2) | | Balance at 31 December 2024 | (401) | | (39) | | (418) | | (858) | | | (49) | | — | | — | | (49) | | | Impairment charge for the year | (172) | | (79) | | (15) | | (266) | | | (41) | | — | | — | | (41) | | | Releases | 41 | | 71 | | 25 | | 137 | | | 1 | | — | | — | | 1 | | | Disposals due to change in the scope of consolidation | — | | — | | — | | — | | | — | | — | | — | | — | | | Disposals | 17 | | 17 | | — | | 34 | | | 6 | | — | | — | | 6 | | | Exchange differences and other | 166 | | 3 | | 40 | | 209 | | | 9 | | — | | — | | 9 | | Balance at 31 December 2025 | (349) | | (27) | | (368) | | (744) | | | (74) | | — | | — | | (74) | | | | | | | | | | | | | Tangible assets, net | | | | | | | | | | Balances at 31 December 2023 | 13,408 | | 19,518 | | 956 | | 33,882 | | | 2,183 | | — | | — | | 2,183 | | Balances at 31 December 2024 | 12,636 | | 18,576 | | 875 | | 32,087 | | | 1,918 | | — | | — | | 1,918 | | Balances at 31 December 2025 | 11,663 | | 14,753 | | 1,022 | | 27,438 | | | 1,556 | | — | | — | | 1,556 | |
b) Tangible assets - For own use The detail, by class of asset, of 'Property, plant and equipment' which is owned by the Group in the consolidated balance sheets is as follows: | | | | | | | | | | | | | | | | | | | EUR million | | | Tangible assets for own use | Of which:
for leasing | | Cost | Accumulated
depreciation | Impairment
losses | Carrying
amount | | Land and buildings | 14,973 | | (5,010) | | (154) | | 9,809 | | 2,104 | | | IT equipment and fixtures | 5,614 | | (4,154) | | — | | 1,460 | | 60 | | | Furniture and vehicles | 5,412 | | (3,424) | | — | | 1,988 | | 19 | | | Construction in progress and other items | 244 | | (49) | | (44) | | 151 | | — | | | Balance at 31 December 2023 | 26,243 | | (12,637) | | (198) | | 13,408 | | 2,183 | | | | | | | | | Land and buildings | 15,113 | | (5,516) | | (353) | | 9,244 | | 1,882 | | | IT equipment and fixtures | 5,283 | | (3,926) | | — | | 1,357 | | 23 | | | Furniture and vehicles | 4,963 | | (3,130) | | — | | 1,833 | | 13 | | | Construction in progress and other items | 297 | | (47) | | (48) | | 202 | | — | | | Balance at 31 December 2024 | 25,656 | | (12,619) | | (401) | | 12,636 | | 1,918 | | | | | | | | | Land and buildings | 14,067 | | (5,359) | | (304) | | 8,404 | | 1,536 | | | IT equipment and fixtures | 4,204 | | (3,003) | | (10) | | 1,191 | | 13 | | | Furniture and vehicles | 5,548 | | (3,746) | | (1) | | 1,801 | | 7 | | | Construction in progress and other items | 322 | | (21) | | (34) | | 267 | | — | | | Balance at 31 December 2025 | 24,141 | | (12,129) | | (349) | | 11,663 | | 1,556 | |
The carrying amount at 31 December 2025 in the foregoing table includes the following approximate amounts EUR 6,545 million (EUR 6,531 million at 31 December 2024 and EUR 7,119 million at 31 December 2023) relating to property, plant and equipment owned by group entities and branches located abroad. c) Tangible assets - Leased out under an operating lease Grupo Santander has assets leased out under operating leases where the company is the lessor and do not meet the accounting requirements to be classified as finance leases. The net cost of these leases is recorded as an asset and depreciated on a straight-line basis over the contractual term of the lease to the expected residual value. The expected residual value and, consequently, the monthly depreciation expense may change during the term of the lease. The Group estimates expected residual values using independent data sources and internal statistical models. It also assesses the estimate of the residual value of these leases and adjusts the depreciation rate in line with the change in the expected value of the asset at the end of the lease. Grupo Santander periodically assesses its investment in operating leases for impairment in certain circumstances, such as a systemic and material decrease in the values of used vehicles. If assets leased out under operating leases are deemed to be impaired, impairment is measured as the amount by which the carrying amount of the assets exceeds the fair value as estimated by discounted cash flows. Of the 14,753 EUR million that the Group had assigned to operating leases at 31 December 2025 (18,576 EUR and 19,518 EUR at 31 December 2024 and 2023, respectively), EUR 7,227 million (EUR 11,336 and EUR 12,525 at 31 December 2024 and 2023, respectively) relate to vehicles of Santander US Auto's business. The variable lease payments of various items of this business are not significant. In addition, the maturity analysis of the assets leased out under operating leases from Santander US Auto, is as follows: | | | | | | | EUR million | | | | Maturity Analysis | 2025 | | 2025 | 3,988 | | | 2026 | 4,228 | | | 2027 | 1,332 | | | 2028 | 330 | |
d) Tangible assets - Investment property The fair value of investment property at 31 December 2025, 2024, 2023 amounted to EUR 1,194, 1,041 and 1,163 million, respectively. A comparison of the fair value of investment property at 31 December 2025, 2024 and 2023 with the net book value shows gross unrealised gains of EUR 172, 166 and 207 million, respectively, attributed completely to the group. The rental income earned from investment property and the direct costs related both to investment properties that generated rental income in 2025, 2024 and 2023 and to investment properties that did not generate rental income in those years are not material in the context of the consolidated financial statements. |