If you haven’t saved 20% of the price, you can still buy a house in Spain without a deposit, or with a very small one. The main routes are public guarantees (the ICO line for young people and families with children, and the schemes run by some of Spain’s regions, known as autonomous communities), the new state loan TU CASA for the deposit, a guarantor or a second property as security, and the mortgages that some banks grant above 80%. What is almost never financed are the taxes and costs of the purchase, so you will need some savings all the same.

Why banks only finance 80%

Normally the mortgage covers at most 80% of the value of the home, usually calculated on the lower of the purchase price and the valuation. It is not a legal ban but a rule of prudence: that 20% is the bank’s cushion if the price of the home falls or the loan stops being paid. 80% is also the benchmark used by Spanish mortgage market rules for a home loan to be able to back the covered bonds (cédulas) that banks use to fund themselves. Above that percentage, the risk for the lender is higher, which is why it asks for something in return: a guarantee, more security or a very solvent profile.

Besides the percentage, the bank looks at your ability to pay: stable income, how long you have been in your job, other debts and what share of your income the instalment would take. Bear in mind that, even if you manage to finance 100%, the instalment will be higher than if you pay a deposit, because you owe more money.

ICO guarantees for young people and families with children

The best-known tool is the ICO guarantee line for buying a first home (Línea de Avales ICO). The Spanish State, through the Instituto de Crédito Oficial (ICO), guarantees part of the loan so that the bank can finance more than 80%: the guarantee covers up to 20% of the loan, or up to 25% if the home has an energy rating of D or better. With it, the mortgage can cover the full price.

According to the update announced by the ICO in June 2026, the main requirements are these:

  • Being a young person under 35 or having dependent children (in that case, with no age limit), with legal residence in Spain.
  • Buying your first home, which will be your main home.
  • Not exceeding an income limit: as a general rule, 4.5 times the IPREM index (€37,800 gross a year), which rises to 7.5 times in the provinces with the most expensive housing and increases for each dependent child and for single-parent families.
  • Having net assets of no more than €150,000.
  • Signing the loan before 31 December 2027.

You don’t apply to the ICO for the guarantee but to the bank: only the lenders signed up to the line offer it, and each one decides whether to grant you the mortgage using its own solvency criteria. The requirements have changed several times since the line was created, so it is worth checking them on the ICO website before you start. Some regions have similar schemes, such as “Mi Primera Vivienda” in the Madrid region, with their own conditions.

TU CASA: the new public loan for the deposit

Royal Decree-Law 26/2026 (RDL 26/2026), published in the Official State Gazette (BOE) on 30 September 2026, creates a mechanism called TU CASA to finance the deposit on a first main home bought with a mortgage. According to the Spanish Government’s information, these are loans of up to 20% of the value of the home, with a maximum of €50,000, at 0% interest and with no fees. Repayment does not start until the mortgage has been paid off (with a maximum grace period of 30 years), and the loan is then repaid over a period of up to 10 years.

There is an important trade-off: homes bought with this aid are subject to a maximum sale price, which limits what you can ask if you sell one day. In addition, every royal decree-law has to be ratified by the Spanish Congress within thirty days of its publication. Before counting on this loan, check that it is still in force, how to apply and what specific requirements it sets.

A guarantor or a second security

If you can’t get a public guarantee, the classic formula is for someone close to you, normally your parents, to back the loan. There are two ways of doing it and the risk is very different:

  • Guarantor (avalista or fiador): answers with all their assets, present and future, if you stop paying. Banks usually make the guarantor waive the right to demand that the bank collects from you first, so it can claim from the guarantor directly. While the guarantee lasts, that debt can also make it harder for them to take out other loans.
  • Double mortgage security: instead of a personal guarantee, another home (for example, your parents’) is also mortgaged for part of the loan. The risk is limited to that property and that amount, and the security can be released once you have repaid enough, if that is agreed.

Ley 5/2019 on property credit extends to guarantors and security providers who are individuals the advance information and free advice from the notary that the borrower receives. Even so, anyone acting as guarantor must understand clearly what they are signing: it is one of the family decisions that causes most trouble when things go wrong.

Mortgages above 80% and other alternatives

Some lenders grant mortgages above 80% without a public guarantee, but they usually reserve them for very solvent profiles (high, stable income, a permanent contract, little debt) or for the sale of homes owned by the bank itself. Sometimes the percentage is calculated on the valuation rather than on the price: if the home is valued at more than you are paying, 80% of the valuation can cover more than 80% of the price. Always compare the APR (TAE) and the conditions, because more financing may come with a higher interest rate or with linked products.

Other options are rent-to-buy (alquiler con opción a compra), where it can be agreed that part of the rent is deducted from the final price, and subsidised housing (viviendas protegidas), with capped prices. On the other hand, be wary of covering the deposit with a personal loan: it usually has a higher interest rate, it adds to your debts and the bank will take it into account when assessing the mortgage.

The taxes and costs of buying come on top

None of these routes usually covers the costs of the sale and purchase, which you will have to pay from your own savings:

  • Second-hand home: transfer tax (Impuesto sobre Transmisiones Patrimoniales, ITP), at the rate set by each region. Many have reduced rates for young people, large families or buyers of a main home.
  • New home: VAT (IVA) at 10% and stamp duty (Actos Jurídicos Documentados, AJD), whose rate is also regional.
  • Notary and Land Registry (Registro de la Propiedad) fees for the purchase, according to the official scales, and the gestoría (administrative agent) if you hire one.
  • Valuation: since Ley 5/2019 it is paid by the person applying for the mortgage, and the bank must accept a valuation you provide if it is from an approved valuation company and still valid. By contrast, the notary, registry and gestoría for the mortgage, and its AJD, are borne by the bank.
  • The holding deposit (arras), which is deducted from the price but comes out of your pocket weeks before the mortgage money arrives. Before paying it, check the home: we explain what to look at in the risks of buying a home.

To give you an idea, with ITP at 8% (an example rate, not that of any particular region), on a €200,000 home the tax alone would be €16,000. Do the sums with your region’s rate and reductions before you commit.

Before signing: the bank’s offer and the deposit contract

The bank has to give you the European Standardised Information Sheet (FEIN) and the rest of the documentation at least ten calendar days before signing, and in that time you can go through it calmly. If you depend on a guarantee or on financing more than 80%, don’t sign the deposit contract (contrato de arras) without having the mortgage approved or without including a clause that returns your holding deposit if it is not granted. After that, the sale and purchase contract must set out what was agreed on deadlines and costs; we explain what a property lawyer does throughout the process.

If you would like someone to review the bank’s offer, the terms of the guarantee or the financing clause in the deposit contract before you commit, tell us about your case and we’ll put you in touch with a specialist mortgage lawyer.

Frequently asked questions

Can you buy a house in Spain with nothing saved?

It is very difficult. Even if you manage to finance 100% of the price with a guarantee, the taxes, notary, registry and valuation are almost never financed and have to be paid from savings.

Which banks offer mortgages with the ICO guarantee?

Only the lenders signed up to the line, whose list the ICO publishes on its website. Each bank assesses the transaction using its own criteria, so the guarantee does not ensure that you will be granted the mortgage.

What is a mortgage guarantor liable for?

They answer with all their assets if the borrower stops paying and, as a rule, the bank can claim from them directly. That is why it is worth considering alternatives such as double mortgage security, which limits the risk to one property and one amount.

Does the ICO guarantee cover the costs of buying?

No. The guarantee allows the bank to finance up to the full price of the home, but ITP or VAT, the notary, the registry and the valuation are still down to you.