Help
- The ICO First-Time Homebuyer Guarantee is a public guarantee program offered by the Official Credit Institute (ICO), in collaboration with the Ministry of Housing and Urban Agenda, that facilitates access to mortgages for young people and families with dependent children.To qualify for this guarantee, you must apply for a mortgage at a financial institution participating in the program, since it is the banks that offer this line of financing based on their own creditworthiness criteria.In general, the guarantee covers up to 20% of the mortgage loan, which can facilitate financing of up to 100% of the home’s value, provided that the established requirements are met—such as not exceeding certain income limits, using the home as a primary residence, and not owning another home.
- Culmia partners with various financial institutions to facilitate access to financing for the purchase of new-construction homes.In certain real estate developments, mortgage subrogation is an option, allowing the buyer to assume the financial terms previously negotiated by the developer with partner financial institutions, which can simplify the mortgage approval process.In addition, these institutions may offer specific terms for customers purchasing new-construction properties, although the final financing terms always depend on the bank’s individual approval of the customer.All specific information regarding agreements and subrogation is available for each development, as it may vary depending on the project and the associated financial institution.
- Yes, in addition to government assistance programs such as the ICO Guarantee, various autonomous communities may offer specific programs to help young people access housing, such as regional guarantee programs, down-payment assistance, or preferential tax terms.These measures vary by autonomous community and may include, for example, supplemental guarantees, direct purchase subsidies, or tax rebates such as the ITP (Property Transfer Tax) under certain conditions.We recommend checking the programs in effect in each region at the time of purchase, as these subsidies may be updated periodically.
- Government assistance programs, such as the ICO Guarantee, can significantly reduce the initial savings needed to buy a home.With a traditional mortgage, financial institutions typically finance up to 80% of the home’s value, which means you’ll need to contribute approximately 20% as a down payment, plus the costs associated with the purchase.With the support of the ICO guarantee, part of that initial 20% can be covered, allowing borrowers in some cases to access financing for up to 100% of the home’s value, provided that the program requirements are met and the financial institution approves the loan.This lowers the barrier to entry and makes it easier to buy one’s first primary residence.
- The purchase of a new-construction home in Spain is generally subject to a 10% VAT on the price of the home.However, there may be certain tax benefits or additional rebates depending on the autonomous community, the buyer’s circumstances, or the type of housing, particularly in affordable housing programs or initiatives aimed at young people or specific groups.In addition to VAT, other taxes and fees associated with the sale may apply, such as the Stamp Duty (AJD), the amount of which also depends on the autonomous community.Since tax treatment may vary depending on the specific case, we recommend that you always review the specific terms of the promotion and the regional regulations in effect at the time of purchase.
