Spain doesn’t have a scheme branded “Help to Buy,” but it does have a real, government-backed equivalent aimed at exactly the problem that scheme was designed to solve: buyers who can qualify for a mortgage but can’t save the deposit.
The closest equivalent: ICO Aval Joven
The ICO (Instituto de Crédito Oficial) guarantee scheme allows eligible first-time buyers to finance the full property price, by having the state guarantee a portion of the mortgage rather than requiring the buyer to put down the usual larger deposit themselves.
How much of the deposit gap it covers
The state guarantee covers up to 20% of the mortgage, rising to 25% if the property carries an energy performance rating of D or better — effectively closing most or all of the gap between what a bank would normally require as a deposit and what the buyer has saved.
Who actually qualifies
The scheme targets buyers under 36 years old, and separately families with dependent children with no upper age limit, purchasing their first primary and permanent home in Spain. Applicants must show continuous legal residence in Spain for the two years immediately before applying — this is not a scheme designed for buyers moving to Spain from abroad without an existing residence history.
Income limits vary a lot by where you’re buying
Eligibility is capped by income, expressed as a multiple of IPREM (a public income reference index), and that multiple is not the same nationwide: a base limit around 4.5x IPREM applies in most provinces, but it rises to 5.5x, 6.5x, or as high as 7.5x IPREM in higher-cost provinces, including Madrid, Barcelona, and Málaga.
What it doesn’t change
The guarantee itself is free for the buyer and the bank, but it does not replace the bank’s own independent assessment of the mortgage application — income, existing debt, and employment stability are still evaluated in the normal way. The scheme is currently scheduled to run until the end of 2027.
Call us today on +34 919 499 342 or email marialuisa@costaluzlawyers.es to check whether you qualify for Spain’s first-time buyer mortgage guarantee scheme.
First-time-buyer relief is not only a Spanish question, and for some buyers the order of events decides it. A Polish first-home exemption, for instance, is lost for good by anyone who has already owned residential property anywhere — including a place in Spain bought first. why buying in Spain first can cost a Polish first-home relief
Frequently Asked Questions
Does Spain have a direct equivalent to the UK’s Help to Buy scheme?
Not under that name, but the closest equivalent is the ICO Aval Joven scheme, a state-backed mortgage guarantee that lets eligible buyers finance the full property price without the usual larger deposit.
How does the ICO guarantee actually work?
The state (via the ICO) guarantees a portion of the mortgage — up to 20%, or 25% if the property has an energy rating of D or higher — reducing the deposit the buyer needs to put down themselves.
Who is eligible?
Buyers under 36, or families with dependent children regardless of age, purchasing their first primary and permanent home in Spain, who have held legal residence in Spain continuously for the two years before applying.
Are there income limits?
Yes, and they vary significantly by province — a base limit around 4.5x IPREM in most areas, rising to 5.5x, 6.5x, or 7.5x IPREM in higher-cost provinces including Madrid, Barcelona and Málaga.
Does the guarantee cost anything?
No — the guarantee itself is free for both the buyer and the bank; the bank still independently assesses and approves the underlying mortgage application.
This content has been prepared with the assistance of artificial intelligence and reviewed by María Luisa de Castro, a lawyer specialising in Real Estate Law and founder of CostaLuz Lawyers.
The information provided is general and indicative in nature. It should not be used as the sole basis for making professional, legal or investment decisions, and CostaLuz Lawyers assumes no responsibility for decisions taken solely on the basis of this content.
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