Spain is set to approve a major overhaul of housing policy today, with a €7 billion plan aimed at tackling affordability, boosting supply and helping younger buyers get on the ladder.

The new Plan Estatal de Vivienda 2026-2030 will act as the framework for how funding is distributed across Spain, with regional governments responsible for rolling out the measures once agreements are signed.

Where the money is going

The plan triples the budget of the previous programme and splits funding across three main areas:

• 40% to expand public housing
• 30% for renovation and energy upgrades
• The remainder focused on helping young people access housing

Funding will be shared between central and regional governments, with Madrid covering 60% and autonomous communities the remaining 40%.

Up to €50,000 to renovate homes

A major pillar of the plan is property rehabilitation.

Homeowners could receive up to €20,500 for energy efficiency improvements, depending on the scale of the work.

This can be combined with further grants – up to €8,000 for structural upgrades and €13,000 for accessibility improvements.

In some cases, particularly for historic or protected buildings, total support could reach €30,000 or more.

Bringing empty homes back into use

The plan also targets Spain’s large stock of vacant properties.

Owners can access up to €35,000 to refurbish empty homes, provided they are rented out at affordable rates for at least five years.

Alternatively, landlords can hand over management of the property for seven years, receiving funding for renovation and guarantees the home will be returned in good condition.

Boost for public and affordable housing

To increase supply, the government is offering up to €85,000 per property for the construction of permanent protected housing, particularly in smaller towns.

Developers will also be incentivised to build homes for social rent, alongside funding for land development and infrastructure.

Help for young buyers and renters

Young people are a key focus.

Under the plan, those under 35 buying or building their first home in towns of up to 20,000 residents can receive grants of up to €15,000.

Rental support is also being expanded, with the youth rent bonus rising to €300 per month for up to four years.

A separate scheme offers up to €28,800 to help young people access protected housing under rent-to-buy models.

New anti-fraud safeguards

Housing Minister Isabel Rodriguez says the plan will include strict anti-fraud measures following past controversies over social housing allocations.

These include mandatory public registers of applicants, transparent allocation systems, and supervised draws to ensure fairness.

‘No public money will fund developments that don’t meet strict transparency standards,’ she said.

What happens next

Once approved, the plan will be rolled out region by region, with local governments responsible for launching applications and distributing aid.