A €1 million home could be an ordinary apartment in central Paris or a luxury villa near Sofia. But wherever buyers are looking, to afford such property, they need an income significantly above the national average.
Euronews Business calculated the required income based on a typical mortgage scheme: a 20% down payment, a fixed interest rate of 3.5%, and a 30-year term. It was also assumed that buyers would spend no more than 33% of their total income on the mortgage.
That means a down payment of €200,000 and a mortgage loan of €800,000.
The calculations do not include property taxes, insurance, transaction-related costs, or other fees, and actual lending conditions vary from country to country and depend on the specific borrower.
Under these assumptions, the annual mortgage payment would be €43,108, which corresponds to €3,592 per month.
If the mortgage takes up 33% of the buyer's total income, that income must be €130,631 per year, or €10,886 per month.
Income levels in Europe vary greatly. In some countries, reaching such amounts is easier; in others, harder. Additionally, the burden can vary significantly even within a single country.
The calculations in this article are based on Eurostat data for 2025 earnings for a single full-time worker without children receiving 100% of the average salary. Since two incomes make buying a €1 million home more realistic, and the main candidates are usually couples, the calculations also show how the burden changes for a family where both partners earn the average salary.
Since the calculations assume that only 33% of the salary can go toward the mortgage, a single average salary is insufficient in every EU country for a single person.
In Bulgaria, this means a shortfall of €3,131—the difference between the mortgage payment of €3,592 and €461, which is 33% of the salary.
In Luxembourg, the shortfall is €1,377, since 33% of the pre-tax salary equals €2,215.