Spain has a problem with access to housing, especially among the younger population. It is neither a secret nor an isolated opinion; it is a proven fact that is getting worse by the minute and has become the main concern for Spaniards, according to the CIS.
Rents are sky-high, especially in cities like Barcelona, and for years now, buying a home has become an almost unattainable dream for young people. The biggest hurdle is, unfortunately, the first step toward buying a home: paying the down payment. Young people lack sufficient funds to cover such a large payment, and they also find it difficult to accumulate significant savings due to today’s high cost of living.
With the aim of solving this problem and making this initial payment more manageable, the Generalitat de Catalunya has launched a grant of up to 50,000 euros for young people between the ages of 18 and 40 who want to buy their first home within the region.
This is not a subsidy per se, but rather an interest-free, fee-free loan with a repayment term of up to 35 years. It’s an option for all those who have been unable to apply for a mortgage due to a lack of down payment funds.
This loan covers 20% of the total price of the home, up to €250,000. In other words, if you want to buy a home that costs more than that amount, you’ll have to pay the difference out of pocket, but if the home costs less, the loan is limited to 20% of that price.
Below, we’ve provided a list of all the requirements and specifications for applying, taken from the Catalan Institute of Finance’s website.
ICF Housing Independence Loan: Requirements and Specifications
This loan, known as the ICF Vivienda Emancipación, can only be applied for by individuals who meet the following eligibility requirements:
- Be between 18 and 40 years of age.
- Be registered as a resident in Catalonia.
- Annual income of no more than €83,392 gross for one person or €85,971 for two people.
- No history of late payments or debts to the government.
- Not owning any other property.
- You must have sufficient personal funds to cover the costs of the sale and taxes (property transfer tax, notary, registration, and administrative fees), amounting to between 8% and 10% of the home’s total price.
But in addition, the home and the mortgage must meet the following criteria:
- The property must be located in Catalonia.
- The property must have a certificate of occupancy.
- It may only be used as a primary residence.
- It cannot be a previously subsidized housing unit; the home must be on the open market.
- It is necessary to obtain prior approval for the remaining 80% from one of the banks participating in the program. The maximum term is 30 years.
- The property will become permanently subsidized housing, so there will be limits on its future sale price.
In any case, processes like this are complicated, and many requirements come with attachments and specifications in the fine print. We recommend that, before submitting your application, you contact the Catalan Institute of Finance to clarify any questions you may have.
