The Generalitat of CATALONIA is launching a new initiative to assist young people in purchasing thier first homes. The program offers up to €50,000 to help cover the initial down payment. This financial support aims to ease the burden of entry costs, making homeownership more accessible for young adults.

According to the plan, when the property is eventually sold, the price of sale would be limited. The limit will be the original purchase price, plus inflation and the cost of any renovations. This ensures the seller recovers their investment while keeping the property affordable for future buyers.

The Generalitat hopes this initiative will help young people buy their first homes and expand the availability of officially protected housing in CATALONIA.

Eligibility and Property requirements

The property must be located in CATALONIA and have a certificate of occupancy.

The property must be located in CATALONIA and have a certificate of habitability. Both new and resale properties are eligible, with no size restrictions. Though,the ICF (Institut Català de Finances) will assess each application,and loans will only be granted to solvent applicants.

The loan can also be used to purchase parking spaces or storage units along with the home. The purchased property must serve as the buyer’s primary and permanent residence.

the ICF Habitatge Emancipació loan is subject to applicable taxes, such as VAT for new properties and the Property Transfer Tax for resale properties.

If the homeowner cannot meet their mortgage obligations, the agència de l’Habitatge de CATALONIA has the right of first refusal to reclaim the property for use as officially protected housing.

application Process

After applying for assistance,applicants must first obtain approval.Then, they must contact participating banks to arrange a mortgage. These mortgages can have repayment periods of up to 30 years, with specific terms negotiated between the client and the bank.

Once the mortgage is paid off,the ICF loan can be repaid over five years.

The Generalitat estimates that participants in this program could save up to €50,000 in interest over the life of their mortgage.

Based on government calculations, if the maximum loan amount of €50,000 is granted to each applicant, at least 2,000 beneficiaries could benefit each year. This would add 2,000 properties annually to the protected housing stock.