Aid for the purchase of housing for young people: requirements and application

Buying a home is one of the dreams of many young people, but access to the real estate market can be challenging due to economic barriers. However, in Spain there are various aids for young people to purchase their first home and programs specifically designed to facilitate this purchase. In this post we will explore the different aids available for young people who want to buy a home in Spain, the requirements to access them and how to apply for this aid for buying a home for young people.

State Housing Plan: aid for young people to buy a home in Spain

The State Housing Plan is a Spanish government initiative that seeks to facilitate access to housing, including aid for young people who want to buy a home. These are designed to overcome the economic barriers they may face when trying to acquire a home of their own and to try to prevent them from making some mistakes that should be avoided when buying a home. 

The Government intends to facilitate the enjoyment of decent and adequate housing for those under 35 years of age, either through aid for young people to buy their first home in municipalities of less than 5,000 inhabitants or by favoring access to a house on a rental basis. This rental aid could reach up to 50% of the monthly amount or up to 30% in the 601 to 900 euros bracket. On the other hand, aid for young people to buy a home would provide up to 10,800 euros with a limit of 20% of the purchase price (less than 100,000 euros).

The following are some of the grants to buy housing for young people available under the State Housing Plan in Spain.

• Direct subsidies. Offers direct subsidies when applying for home purchase aid for young people. These may vary depending on different criteria, such as the applicant’s age, income and family situation.
• Down payment subsidies. Buying a home involves a large financial outlay that is often difficult to afford at a young age even with a mortgage. That is why many parents choose to contribute and give money to their child to buy their home. However, you should know that in order to finance the down payment of a new home, grants for young people for their first home can include the down payment. They cover a portion of the total amount needed, making it easier to access.
• Subsidized loans. These loans often have favorable terms, such as lower interest rates or longer repayment terms.
• Rent-to-own programs. This type of home purchase assistance for young people allows them to rent with the possibility of purchasing this property in the future, giving them time to save and stabilize their financial situation before committing to the purchase. Remember that there are a series of expenses and taxes when acquiring an apartment or house whose figure must be added to the initial price of the property.
• Facilities for access to financing. You can include aids for young people to buy a first home aimed at facilitating access to financing, such as public guarantees or agreements with financial institutions to offer preferential conditions to this group.

It is important to bear in mind that aid for the purchase of housing for young people may vary depending on the autonomous community in which they apply. Those interested in accessing these grants for young people to buy a home should find out about the specific requirements and the application procedure in their corresponding autonomous community.

Regional aid for young people who want to buy a home

In addition to the State Housing Plan, many autonomous communities in Spain offer their own aid to facilitate the purchase of housing for young people. That is why, if you have doubts about whether it is the best time to buy a house or an apartment, this information can be decisive. Below we will detail some of the aids for young people for the purchase of housing available in different regions of Spain.

Aid for the purchase of housing for young people in Madrid

The Community of Madrid offers different aid programs for the purchase of housing for young people. The regional government launched Mi Primera Vivienda in the fall of 2022 with an investment of 18 million euros and a membership agreement with CaixaBank, Ibercaja and Banco Santander. Since then, mortgage loans have been provided to young people who did not have the savings to cover the 20% of the value of the property required by financial institutions.

There are a series of conditions to qualify for this aid for the purchase of a home for young people in Madrid. The young people must prove their legal residence in this Community, in a continuous and uninterrupted way, during the two years immediately previous to the date of application for the mortgage. In addition, they may not own another property within the national territory and the value of the house must not exceed 390,000 euros.

Aid for the purchase of housing for young people in Catalonia

The Generalitat de Catalonia offers aid for the purchase and rental of housing for young people. If you are under 32 years old and the purchase is of a habitual residence, you will only pay 5% of the transfer tax. To benefit from this reduction, the taxable base of the last IRPF declaration, taking out the personal and family minimum, cannot exceed 30,000 euros. In addition, the property must be purchased freehold.

Another type of aid for the purchase of housing for young people in Catalonia is related to donations. If you receive a family donation to buy it or the donation of a house to be used as your first habitual residence and you are under 36 years old, you will get a reduction in the inheritance and donations tax for a maximum of 60,000 euros. In case you have a disability of 65% or more, this amount is up to 120,000 euros.

If you are looking for a rented apartment, you are between 18 and 35 years old and have a minimum demonstrable income, you can go to a Mediation Network. There they will guide you to apply for help for the purchase and rental of housing for young people free of charge. 

Help in the purchase of housing for young people in Andalusia

The Junta de Andalucía offers a variety of home buying assistance for young people and several programs in the region. One of the most outstanding is the Programa de Garantía Vivienda Joven (Youth Housing Guarantee Program) for financing the purchase of a primary residence for individuals over 35 years of age.

The main requirement of this aid for the purchase of housing for young people in Andalusia is that it is aimed at people between 18 and 35 years of age who purchase their first home to be used as their habitual residence for at least two years.

Another of the requirements to apply for this aid for the purchase of a home for young people in Andalusia is that this person may not be the owner of the full domain or of a real right of use or enjoyment of another home in the whole national territory. Except for exceptions, he/she must be registered in an Andalusian municipality, must have subscribed a deposit contract or pre-agreement that accredits the commitment to buy and sell the property and must have the mortgage loan authorized by his/her representative financial entity.

Aid in the purchase of housing for young people in Murcia

The Autonomous Community of the Region of Murcia has different aid programs for young people who want to buy a home. These programs include direct subsidies, mortgage loans with preferential conditions… The requirements to access this type of aid for the purchase of a home for young people in Murcia may vary according to the personal situation of the applicant.

The aid for young people who want to buy their first home in municipalities or towns of less than 10,000 inhabitants is particularly noteworthy. The Community grants aid of up to a maximum of 10,800 euros per home with a limit of 20% of the purchase price. You must be under 35 years of age, the value of the property must not exceed 120,000 euros and your income must be less than 25,200 euros per year.

In addition to this aid for the purchase of housing for young people in Murcia, there are also programs related to renting, in which up to 60% of the monthly rental price is financed. It is compatible with the aid Bono Alquiler Joven but, in any case, the sum of the aid for young people for their first home combining the Bono and this program cannot exceed 75% of the amount of the rent.

Aid for the purchase of housing for young people in Valencia

The Generalitat Valenciana offers different types of aid for the purchase of housing for young people in Valencia aimed at people with limited financial means. The objective is to facilitate the access to a property located in a small municipality or population center of the Valencian Community, that is to say, with a resident population of less than 5,000 inhabitants that are integrated in the rural environment.

To be eligible for this aid for the purchase of housing for young people in Valencia, you must take into account that only the acquisitions of a home subscribed during the period between 1 year prior to the date of the call until the last day of the application period, and whose purchase contract is pending formalization at the time of application for aid, will be eligible.

If you are young and you are looking to buy a home in Spain, do not hesitate to explore the different aids for the purchase of a home for young people available at both state and regional level. If you meet the requirements, with planning you will be able to obtain the necessary money and financing to make your dream of owning your own home come true.