Here is a fact that few people know: the Spanish Government has just approved the largest housing budget in the country’s history. We are talking about €7 billion allocated to the National Housing Plan 2026-2030 — a 135% increase over the previous plan. And yet, many potential buyers do not even know that there are programs that can finance up to 100% of the purchase of their first home.
The reality is that buying a home in Spain remains a monumental challenge. The average price in Barcelona reached €5,148/m² in January 2026, and young people need to dedicate the equivalent of 14 years of their entire salary just to cover the purchase price. But between ICO guarantees, regional subsidies and tax deductions, there is an arsenal of aids that can make the difference between continuing to rent and holding the keys to your own place.
In this guide, we have gathered all the active subsidies for 2026, with specific requirements, exact amounts and the steps to apply.
The National Housing Plan 2026-2030: The Government’s Big Bet
The new National Housing Plan came into effect on January 1, 2026. It is the first plan developed under the Housing Law that recognizes access to housing as a right. This is not a continuation of the previous plan; it is a complete overhaul.
Key figures for the 2026-2030 Plan: Total investment of €7 billion — the State contributes 60% (€4.2B) and the autonomous communities the remaining 40% (€2.8B). This represents a 135% increase compared to the 2022-2025 Plan.
How the Budget is Distributed
The plan’s distribution reveals the government’s priorities:
| Purpose | Percentage | Estimated Investment |
|---|---|---|
| Permanently protected housing | 40% | €2.8B |
| Housing rehabilitation | 30% | €2.1B |
| Emergency aid (youth, rural areas, affordable rental) | 30% | €2.1B |
A cross-cutting commitment across all lines: no beneficiary will spend more than 30% of their income on housing. This is a threshold that international organizations like the OECD have been recommending for years and that, until now, most Spaniards exceeded by a wide margin.
Direct Aid Lines for Buyers
Within this framework, the most relevant lines for prospective buyers are:
- Subsidized rent-to-own scheme: Up to €30,000 in direct aid for people under 35 who rent social housing with a purchase option. Rent payments are deducted from the final price.
- Rural area purchase aid: Over €10,800 (up to 20% of the price) for a first home in municipalities with fewer than 10,000 inhabitants.
- Energy efficiency rehabilitation: Grants for improving the energy rating of existing homes.
Read the fine print: The €30,000 rent-to-own aid only applies to social housing (VPO). Between 2018 and 2025, just 632 social housing units were built under the rent-to-own scheme in all of Spain. In 2023, the number was literally zero. The aid exists on paper, but the supply of eligible homes is extremely limited.
ICO Guarantees: The Key to Financing 100% of Your First Home
If there is one aid that is changing the game for young buyers, it is the ICO guarantees. This program allows the Official Credit Institute to guarantee part of your mortgage, eliminating the hardest barrier to overcome: the down payment.
How Does It Work Exactly?
The mechanism is straightforward but powerful:
- You apply for a mortgage at the bank for 100% of the property value
- The ICO guarantees between 20% and 25% of the loan amount
- The bank grants your mortgage because the default risk is covered by the State
- You pay your mortgage normally, with no additional interest for the guarantee
In practice, this means you can buy without needing the classic €50,000-60,000 in savings for a down payment.
Energy-efficient homes = higher guarantee: If the property you buy has an energy rating of D or above, the ICO guarantees up to 25% (instead of the standard 20%). An extra incentive to choose sustainable homes.
Requirements for the ICO Guarantee
| Requirement | Detail |
|---|---|
| Age | Maximum 35 years at mortgage signing |
| Income | Maximum €37,800 gross/year (4.5 times IPREM) |
| Assets | Maximum €100,000 |
| Residency | Legal residence in Spain for 2 continuous years |
| Property | Must not own another property |
| Maximum price | The property cannot exceed €300,000 |
| Use | Must be your primary and permanent residence |
Which Banks Participate?
The program has the participation of 60 financial institutions, including:
- Major banks: Santander, BBVA, CaixaBank, Bankinter
- Digital banks: Openbank, EVO Banco
- Specialists: UCI, Arquia
- Credit cooperatives: Cajamar, Globalcaja, Caixa Popular and over 40 rural cooperatives
The full list is available on the ICO website.
Deadline: Extended Until December 2027
Good news: the deadline to apply for ICO guarantees has been extended to December 31, 2027. It was initially set to expire in 2025, but demand and positive outcomes motivated the extension.
Program scale: The guarantee line has €2.5 billion, with the capacity to benefit over 50,000 people. According to ICO data, the number of applications has grown 40% since its launch.
Practical Simulation: Buying with an ICO Guarantee in Barcelona
Let us look at a real-world example. María, 31 years old, wants to buy a flat for €280,000 in Sant Martí.
Without ICO guarantee:
- Down payment needed (20%): €56,000
- Purchase costs (~10%): €28,000
- Total savings needed: €84,000
- Mortgage: €224,000 over 25 years at 2.40% fixed → Payment: €990/month
With ICO guarantee:
- Down payment needed: €0 (the ICO guarantees the 20%)
- Purchase costs (~10%): €28,000
- Total savings needed: €28,000 ← Savings of €56,000
- Mortgage: €280,000 over 30 years at 2.55% fixed → Payment: €1,113/month
The difference in prior savings is staggering: from needing €84,000 to needing just €28,000.
Catalonia-Specific Aids: ICF Habitatge Emancipació
If you are buying in Catalonia, you have access to an additional aid that perfectly complements the ICO guarantees: the ICF Habitatge Emancipació loan from the Institut Català de Finances.
What Is It?
It is a public loan that finances up to 20% of the purchase price (maximum €50,000) with conditions you will not find at any private bank:
- You do not start repaying the loan until you finish paying your main mortgage
- Once the mortgage is paid off, you have 5 years to repay the ICF
- During those 5 years, the interest rate is 0%
Put simply: if your mortgage is 25 years, you pay nothing to the ICF for 25 years. Then you have 5 more years to repay the loan interest-free.
Requirements
- Age: Between 18 and 35 years
- Registration: Registered as a resident in Catalonia
- Income: Must not exceed 6.5 times the IRSC (Catalonia’s Income Sufficiency Indicator)
- First home: Must not own another property
Winning combination: You can simultaneously use the ICO guarantee (to finance 100% of the mortgage) and the ICF loan (to cover purchase costs). In theory, you could buy your first home in Catalonia with savings close to zero, although you will need to demonstrate monthly payment capacity.
Tax Deductions and ITP Reductions
Beyond direct aids, there are tax benefits that significantly reduce the cost of buying.
Property Transfer Tax (ITP)
The ITP is the tax you pay when buying a resale property. Its rate varies enormously between autonomous communities, and several have introduced reductions for 2026:
| Autonomous Community | Standard Rate | Reduced Rate (Young Buyers) | Savings on €250,000 Property |
|---|---|---|---|
| Valencia | 10% → 9% (from June 2026) | Additional reduction | Up to €2,500 |
| Galicia | 9% → 7% | Reduced rate | Up to €5,000 |
| La Rioja | 5% → 4% (under 40 years) | 4% | Up to €2,500 |
| Catalonia | 10% | 5% (social housing) | Up to €12,500 |
New in La Rioja: They have raised the age limit from 36 to 40 years to benefit from the reduced ITP rate. A trend that other communities may follow, acknowledging that emancipation is being delayed further and further.
Income Tax Deductions (IRPF)
Although the national deduction for primary residence purchase was eliminated in 2013, it remains in effect for mortgages signed before that date. However, several autonomous communities maintain their own deductions:
- Catalonia: Deduction for rehabilitation of primary residence
- Basque Country: 18% deduction on primary residence investment (up to €1,530/year)
- Navarra: 15% deduction on primary residence investment
The Reality of the Numbers: Who Can Buy in 2026?
The aids are more generous than ever, but the housing access crisis remains deep. Let us put the data on the table.
The Emancipation Problem
According to the Spanish Youth Council, the youth emancipation rate stands at 14.8% — the worst figure since 2006. Young Spaniards leave home at an average age of 30.4 years, four years above the European average.
| Indicator | Data | Context |
|---|---|---|
| Average emancipation age | 30.4 years | Only Greece, Slovakia and Croatia worse |
| Emancipation rate (15-29 years) | 14.8% | Historic low since 2006 |
| Salary percentage for rent | 92.3% | Practically unviable without aid |
| Minimum savings to buy | over €59,000 | 4 years of full salary |
| Young people who would buy if they could | 80% | Demand exists; capacity does not |
Barcelona: An Extreme Market
The average housing price in Barcelona reached €5,148/m² in January 2026, 9.4% higher than a year earlier. This means that a 70 m² flat costs an average of €360,000 — above the €300,000 limit for the ICO guarantee.
ICO guarantee limit in Barcelona: With an average price of €5,148/m², only properties under 58 m² would fall within the ICO guarantee’s €300,000 limit. In neighborhoods like Sarrià-Sant Gervasi (~€6,900/m²), the limit drops to 43 m². To find affordable properties with an ICO guarantee in Barcelona, outlying neighborhoods like Nou Barris, Sant Andreu or Horta-Guinardó offer more accessible prices.
The Current Mortgage Landscape
A positive point: interest rates have stabilized at reasonable levels.
- Euribor: Between 2% and 2.2% according to forecasts for 2026
- Best fixed mortgages: Ibercaja (2.30% TIN), Openbank (2.42%), Santander (2.55%)
- Over 60% of mortgages signed in 2025 were fixed-rate
Compared to the peaks of 2023-2024 (when the Euribor exceeded 4%), the current moment is considerably better for financing a purchase.
Step-by-Step Guide: How to Apply for the Aids
Step 1: Determine Which Aids You Are Eligible For
Before visiting a single property, run this check:
- Are you under 35? → ICO guarantee + ICF Habitatge (Catalonia) + reduced ITP
- Are you buying in a rural municipality (fewer than 10,000 inhabitants)? → Rural aid from the National Plan
- Is it social housing (VPO)? → €30,000 rent-to-own aid
- Is your income under €37,800 gross/year? → ICO guarantee
- Is the property under €300,000? → ICO guarantee
- Are you registered as a resident in Catalonia? → ICF Habitatge Emancipació
Step 2: Prepare Your Documentation
Documents common to almost all aids:
- DNI/NIE (national ID / foreigner ID) in force
- Latest tax return (IRPF)
- Certificate of registration (empadronamiento, last 2 years)
- Updated employment history (Vida Laboral)
- Property Registry simple note (confirms you do not own property)
- Payslips from the last 6 months
- Deposit contract (contrato de arras) or pre-agreement for the property
Step 3: Apply for the ICO Guarantee (if applicable)
- Visit one of the 60 participating banks with your documentation
- Apply for a mortgage indicating you want to use the ICO guarantee
- The bank processes the application directly with the ICO
- The ICO evaluates and issues the guarantee (average time: 2-4 weeks)
- The mortgage is formalized with the guarantee included
Step 4: Apply for Regional Aids
In Catalonia:
- Access the ICF website (Institut Català de Finances)
- Complete the application form for the Habitatge Emancipació loan
- Attach required documentation
- Resolution period: approximately 30 days
Step 5: Apply Tax Deductions
- Check the reduced ITP rate for your autonomous community before the purchase
- Request the reduced rate when settling the tax
- Keep all documentation for your tax return
Common Mistakes When Applying for Aids
After guiding dozens of buyers through these processes, these are the mistakes I see repeated:
Mistake 1: Not checking the price limit before house hunting Many buyers fall in love with a €350,000 flat and then discover the ICO guarantee only covers up to €300,000. Always filter by price before visiting.
Mistake 2: Confusing gross and net income The €37,800 gross annual limit for the ICO guarantee is approximately €28,000-30,000 net depending on your situation. Check your latest tax return to verify.
Mistake 3: Not applying for the ICO guarantee in time The guarantee must be approved before the mortgage is formalized. If you sign a deposit contract without having started the process, you may face very tight deadlines. Start the application at least 6 weeks before the notary date.
Mistake 4: Assuming all aids are compatible Some national and regional aids are compatible (like the ICO guarantee + ICF Habitatge), but others are not. Confirm compatibility before building your budget on assumptions.
Professional advice: Before starting the process, request a free consultation with a real estate advisor who knows the current aids. At Pedro Ochoa Inmobiliaria, we help you identify exactly which aids you can combine based on your profile and the property you are looking for.
Market Outlook for 2026
Sector experts point to a year of moderate price growth (between 3% and 6%), with demand continuing to outpace supply in major cities. Real estate investment volume could surpass €17 billion according to industry projections.
For buyers, this means waiting will not make prices cheaper. Current aids offer a real window of opportunity, especially the ICO guarantees whose credit line has an expiration date (December 2027).
Summary: Key Aids for 2026
| Aid | Amount/Benefit | Who Can Apply | Deadline |
|---|---|---|---|
| ICO Guarantee | 20-25% of mortgage | Under 35, under €37,800/year | Until Dec. 2027 |
| National Plan (rural) | Up to €10,800 (20% of price) | Buyers in municipalities under 10,000 inhab. | 2026-2030 |
| Rent-to-own | Up to €30,000 | Under 35 in social housing | 2026-2030 |
| ICF Habitatge (Catalonia) | Up to €50,000 at 0% | 18-35, registered in Catalonia | Active |
| Reduced ITP | Savings of €2,500-12,500 | Varies by autonomous community | 2026 |
Recommended next step: If you are thinking about buying your first home in Barcelona, we invite you to a personalized consultation where we will analyze your profile, calculate which aids you qualify for, and search for properties that fit both your budget and the aid requirements.
- Phone: 680 808 844
- Email: info@pedroochoa.com
- Location: Barcelona, Spain
Data updated as of February 2026. Sources: La Moncloa - National Housing Plan 2026-2030, ICO - Mortgage guarantee line for first home, ICF - Habitatge Emancipació, Spanish Youth Council, Idealista - Housing prices Barcelona January 2026. Amounts and requirements may vary. For personalized advice, contact Pedro Ochoa Inmobiliaria.
