How to Buy a Home in Spain if You’re Under 35

Many young people in Spain are stuck in a common middle ground that leaves them able to afford to move out of their family home, but unable to afford to buy a property of their own. Despite having healthy incomes and stable financial backgrounds, they are struggling to secure a mortgage or raise the down payment that they need to invest in their own property. If you’re under 35 in Spain and are struggling to get on the property ladder, then the good news is that you’re not alone: research suggests that as many as six in 10 young people in Spain between the ages of 18 and 34 have tried to buy a property unsuccessfully. As a result, 59.2% of young people in Spain rent a property whilst just 17.4% own their own homes.

The Spanish government are aware of this growing problem, and so they have introduced several schemes across the country to help young people under the age of 35 to take the plunge and buy their first property. If you fall into this group, then here are some of the schemes that may be able to help you:

Consider Buying a Rural Property

If you live in a town or village with less than 10,000 residents or want to buy a property in a town or village with less than 10,000 residents then you’re in luck! The government have introduced a subsidy of €10,800 for those under 35 who wish to buy properties in these areas. The aim of this scheme is to resolve both the issue of declining rural populations in Spain and the issue of under 35s being able to buy their own homes. This scheme will only be in place until December 2022, so if you want to apply for this then now’s the time. You must apply directly via the programme in your region, and the scheme differs slightly from region to region, with the details outlined below:

• Andalusia. The region runs its own independent ‘First Home Programme’ alongside the State Housing Plan. This means young rural buyers in the area can receive aid of up to 10,800 euros to help them buy their first home.
• Castilla y León. Residents in this region are eligible for aid from the regional government if they wish to live in the province of Soria. Aid is available up to 50 percent (with the maximum grant available worth €5,000). Unlike in other regions, individuals up to the age of 36 can apply. Find out more on how to apply here.
• Canary Islands. Because much of the Canary Islands is rural, young people staying on the islands  can apply for a housing benefit worth 20 percent of the cost of the property they are purchasing (with the maximum grant available worth €11,000). You are eligible up until the age of 36 and can find out more about the aid here.
• Galicia. Rather than supporting young people to buy in rural communities, in Galicia assistance is being given to young people who wish to buy in the historic centres of towns and cities. A grant of up to 12,800 euros is available for this aged 35 and under who wish to do so. The aim of this is to rejuvenate the oldest parts of the region, but the application process for this ends on 15th November, so you’ll have to be quick.
• Madrid. Madrid is the latest region to introduce an aid package for those aged under 35, with a new scheme released in July of this year. As part of this scheme, banks in the region, working alongside the government of Madrid, will grant mortgage loans for amounts greater than 80 percent and up to 95 percent of the value of the property, provided that the purchase price doesn’t exceed €390,000.
• Murcia. In the region of Murcia those aged under 35 can secure an aid package with 20 percent of their property purchase value (up to €10,850) if they wish to buy a home for their own use and residence using a mortgage loan. Find out more and apply for the aid here.
• Valencia. Finally, in the Valencia region, the Ministry of Housing and Bioclimatic Architecture have introduced a scheme with the duel aims of helping young people to buy properties and support towns and villages that are at risk from de-population. Each applicant under the age of 35 can receive 20 percent of their property value, up to a maximum grant of €10,800 per person. The cost of the property cannot exceed €120,000 and it must be your main and permanent home.

Support For Large Families

If you don’t want to buy a property in a rural location, then there may still be support available for you. Large families (known as  familias numerosas in Spain) are families with four or more children. If you fall into this large family category then you are eligible for state aid to assist you in buying a property. This aid is currently worth €10,800 as long as that figure does not exceed 20 percent of the property price. Other benefits to support large families getting on the property ladder include a discount on the payment of the Property Transfer Tax (ITP), and up to four percent on second-hand purchases.

Support For Renting a Property

If buying your own home is out of reach even when taking this aid into account, you could still be entitled to support to help you rent a property. There are several benefit schemes to help young people move out of their parent’s home and be able to rent instead. The Bono Alquiler Joven allows those between 18 and 35 to get €250 per month to go towards rent and is available across the country, but there are also other regional schemes that you could investigate too.

It’s important to note that many of the schemes outlined above are only intended for homebuyers under the age of 35 who don’t already own a property, and they are time-sensitive schemes, meaning that if you’re interested in applying for one you shouldn’t delay. You may also need to already live in the region where you want to purchase your property.  For example, those wanting to benefit from the aid package in Madrid must have lived in the region for the two years leading up to their application. This is worth researching before you apply.

Are you thinking of buying your first property in Spain?  Or looking for a holiday home that you can let when you’re not using it? Then why not get in touch with our locally based property experts, who are perfectly placed to help make you dream of Spanish home ownership a reality. We’re already excited to work with you !