Spain’s government has unveiled a new €30,000 housing aid package designed to help young people escape the rental trap and move towards home ownership.
The measure, announced by Prime Minister Pedro Sanchez this week, is one of the centrepieces of the upcoming State Housing Plan 2026-2029.
Here’s what we know so far…
Who is it for?
The aid is targeted at young people under 35 years old who currently rent their homes.
The goal is to help this group, often locked out of the property market by high prices and stagnant wages, to build a path towards buying.
How does it work?
- Eligible renters will receive up to €30,000 in support for an ‘alquiler con opción a compra’ (rent with option to buy) contract.
- The money will go towards rent initially.
- If the tenant later decides to buy the home, the rent already paid will be deducted from the final purchase price.
- Importantly, the scheme applies only to protected housing (viviendas de protección oficial permanente or VPO) where prices are regulated to remain affordable.
This prevents speculation: if the owner sells, they must do so at a capped price, and only to someone who also meets the scheme’s conditions.
Extra measures for young people
The housing plan also includes:
- Rent non-payment insurance for young tenants, offering landlords guarantees and encouraging them to rent to younger applicants.
- Aid of up to €10,800 for young buyers in small municipalities with fewer than 10,000 residents, designed to attract people back to rural areas.
The government says it wants to stop housing from being a ‘barrier to independence’ for young people.
Spain has one of Europe’s highest youth unemployment rates, and many under-35s continue living with their parents because renting eats up too much of their income.
By subsidising rent-to-buy schemes, officials hope to turn rent payments into a stepping stone towards ownership, instead of a financial dead end.
What’s still unclear?
- Exact eligibility rules (such as income limits or rental history requirements) have not yet been published.
- Application details – when, where and how young people can apply – are still to come.
- Scale – it remains to be seen how many protected homes will be available across Spain, especially in high-demand areas like Madrid, Barcelona, Málaga and Sevilla.
Read more Spanish property news at the Spanish Eye.
