Discover on this page all the options that the Government and the autonomous communities have available to you in terms of aid for mortgages aimed at young people. From direct aid to guarantees, these measures are designed to make it easier for you to buy your first home, even if you have little savings.
Buying your first home in Spain is exciting, but it can be financially overwhelming. Fortunately, there are assistance and financing programmes designed to make this dream a reality. First, the government offers a variety of subsidies and preferential loans through different entities and programmes.
Last year, the Spanish government approved the State Housing Plan 2022-2025. This programme includes a subsidy of up to 10,800 euros for young people who want to buy their first house or flat. In other words, you could receive a grant (and not a loan) of up to 10,800 euros.
But there is one key detail you should bear in mind: the limit for this government aid for mortgages is 20% of the price of the house. So, if you are lucky enough to find a house for 50,000 euros, the subsidy would be 10,000 euros. In addition, the price of the property cannot exceed 100,000 euros. We know that this is something difficult to find in Madrid, Barcelona or Valencia, but read on as we will show you the subsidies of the autonomous communities below!
Requirements to apply for State Housing Plan aid
- Age: you can be up to 35 years old.
- Type of home: new, used or to be built, as long as it is going to be your habitual residence.
- Maximum income to qualify for the aid: those who are going to live in the home can earn up to three times the Public Multiple Effect Income Indicator (IPREM), which in 2023 is 600 euros per month. In other words, they cannot receive more than 1,800 euros gross per month.
- Type of municipality: the municipality or population centre where the home is located must have a maximum of 10,000 inhabitants.
- You cannot be the owner or usufructuary of another home in Spain.
Where to apply for this aid to buy a first home?
Although the aid is state aid, you have to apply for it from the autonomous community or city in which you are going to buy the house. On their website you will find the process you need to follow to apply.
Another of the main resources is the Instituto de la Vivienda (Housing Institute), which administers aid programmes for the purchase of housing at both state and autonomous community level. These programmes are aimed at facilitating access to housing for people with low or moderate incomes. For example, the State Housing Plan usually offers direct aid for the payment of the mortgage loan, as well as subsidies for the entry into housing.
In addition to the Instituto de la Vivienda, many autonomous communities also have their own aid programmes for first-time buyers. For example, the Junta de Andalucía has the Plan de Vivienda y Rehabilitación de Andalucía, which provides subsidies and loans for the purchase of housing as well as for the rehabilitation of existing homes.
In terms of financing, banks in Spain often offer specific mortgages for first-time buyers. These mortgages often have favourable conditions, such as lower interest rates and grace periods, which can facilitate access to property for those who are buying their first home. In addition to government programmes and special mortgages, there are other financing options that may be useful for first-time buyers. For example, some programmes offer interest-free or very low-interest loans that can help cover part of the cost of the home or the expenses associated with the purchase.
It is important to note that many of these programmes have specific eligibility requirements that applicants must meet. These requirements may include income criteria, age, employment status, among others. Therefore, it is essential to learn about all available options and ensure that you meet the requirements before applying for any type of assistance or financing. To make the most of these assistance and financing programmes, it is advisable to seek professional advice. Real estate agents and financial advisors can provide expert guidance and help you find the best options for your particular situation.
In short, if you are thinking of buying your first home in Spain, don't hesitate to explore the available assistance and financing programmes. Whether through the government, banks or other institutions, there are resources available to help you realise your dream of home ownership. With the right guidance and due diligence, you can make the most of your time in Spain.