First-time buyer help in Spain 2026: what's available and how to apply

Access to housing for young people and buyers without prior savings is one of the biggest problems in the Spanish property market in 2026. To try to ease it, there are several lines of public support, although getting them requires knowing exactly what exists, where to apply and what the real requirements are. Here is the up-to-date guide.

The ICO guarantee for young people (up to an extra 20%)

The Spanish government, through the ICO (Instituto de Crédito Oficial, Spain's state-owned financial agency), offers public guarantees so that young people aged up to 35 (and families with dependent children) can get financing of up to 100% of the value of the home—instead of the bank's standard 80%. The guarantee covers the difference.

Main requirements: not having turned 36 when signing the loan (or being a family with dependent children), the home being your main residence, the price not exceeding the maximum set for each region (comunidad autónoma), net assets of no more than €150,000 and income below the limit set by the Comisión de Seguimiento (the programme's monitoring committee) according to local prices (up to 7.5 times the IPREM, the official income index used for public aid, per person, with 0.3 times more for each dependent child and up to 70% more for single-parent families).

The application is made through the banks taking part in the scheme, not directly with the ICO. Ask your bank whether it takes part before starting the process.

ITP reductions for young people

As we saw in the article on the ITP (Impuesto de Transmisiones Patrimoniales, the property transfer tax), almost every region has reduced rates for buyers under 35-36. The saving can be significant: in Andalusia, the rate falls from 7% to 3.5% for under-35s on low incomes. On a €150,000 home, that means a saving of €5,250.

The Plan Estatal de Vivienda: rental subsidies

For those who can't buy, the Plan Estatal de Vivienda (the State Housing Plan) includes lines of rental support (the bono joven de alquiler, the youth rent allowance) and renovation grants. Application windows and amounts vary by region and change every year. Check with your region's housing office or on the website of the Ministerio de Vivienda (the Ministry of Housing).

Regional IRPF deductions for buying

Although the state deduction for buying a main residence disappeared in 2013, several regions keep their own deductions in the regional portion of the IRPF (Spanish personal income tax). Extremadura, the Canary Islands, La Rioja and other regions have deductions of up to 5% of the purchase price for certain groups. Check what applies in your region before filing your return.

Find assets within your budget: Go to the inventory of bank repossessions with 100% financing available, or explore discounted auctions to make the most of your budget.