Getting on the property ladder is tough for many people in Spain at the moment. With high interest rates over recent years and many struggling to keep up with rising property prices, any help potential buyers can get is welcome.

This is especially true for younger people, large families and those with disabilities. 

Fortunately in Spain the government and regional authorities between them offer different benefits and incentives to help people get into the property market who might otherwise struggle to do so.

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Young people and the disabled

Young people can find it particularly difficult to enter the property market anywhere in the world. This is even truer in Spain, where youth unemployment rates are high and many Spaniards are forced to live with their parents well into their 30s.

The Spanish government’s Plan for access to housing (2022-2025) outlines forms of aid for young people (defined as aged 35 or under) to buy properties located in small municipalities of 10,000 people or less.

The subsidies are usually managed through the regional governments, so the rules vary slightly depending on where in Spain you are. Be sure to keep any eye out for calls for applications if you fit the following criteria:

A lot of the aid is means tested, meaning there are thresholds you have to remain under if you want to access the housing benefit.

The annual income thresholds are: 

• In general, less than €25,200 per year (the equivalent of 3x IPREM).
• €33,600 (4x IPREM) in the case of people with disabilities.
• €42,000 (5x IPREM) for people with certain higher degrees of disability.

IPREM stands for Indicador Público de Renta de Efectos Múltiples and is essentially a government index used to establish the limits for state aid, as well as a base level income in order to qualify for certain types of visa. You can read more about what it is and how it’s used via the link below.

READ ALSO: Visas and money: 10 things you should know about Spain’s IPREM index

There are a few more rules you should be aware of. Leading Spanish property portal Idealista states that:

• The price of the property cannot exceed €120,000.
• It must be located in a municipality with a population of up to 10,000 inhabitants.
• The property must be your permanent and habitual residence for at least 5 years.
• In order to qualify for this aid, you cannot already own another property in Spain.

The amount of aid allocated generally goes up to €10,800 with a limit of 20 percent of the total purchase price.

In the event that several people want to purchase a home together, the amount of aid that a beneficiary may receive will be determined by applying the percentage of the share purchased to the amount of aid that would correspond to the purchase of 100 percent of the home.

Large families aid

There are also benefits available to large families, known as familias numerosas in Spanish.

If you are a large family, finding a suitable home can present some challenges. Fortunately large families in Spain can also qualify for various state and regional subsidies, such as deductions in the IRPF income tax return that are added to the deductions already allowed by some regions.

In Spain, when applying for state aid there are generally two categories of large family:

• Familia Numerosa General (RG) which are families with up to 4 children.
• Familia Numerosa de Categoría Especial (RE) which are families with 5 or more children.

Large families are given a discount on the Property Transfer Tax (ITP), which is paid on second-hand purchases between private individuals and varies according to region in which the property is located. 

In these family cases, the rate is reduced to 4 percent. 

The Spanish Federation of Large Families has a very useful search engine for benefits at national, regional and local level, so you can find out exactly what you are eligible for depending on your location.

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