Can I Get A 100% Mortgage In Spain?

Many individuals harbour aspirations of owning property in Spain, but the financial burden often proves to be a significant obstacle, preventing them from taking the first step onto the property ladder.

Nevertheless, there is now renewed hope for millions of young people and families, courtesy of the ICO mortgage guarantee scheme supported by the Spanish government.

Can I get a 100% mortgage in Spain?

Traditionally, securing a 100% mortgage in Spain was rare, with banks requiring a minimum 20% deposit. This alone was a major barrier for first-time buyers. But the ICO scheme has significantly changed the landscape, allowing banks to offer full financing with a government-backed guarantee for eligible applicants.

The scheme is expected to benefit over 16 million people in Spain. Here’s a comprehensive overview of what you need to know about this initiative in 2025.

What is the ICO mortgage guarantee scheme?

The ICO (Instituto de Crédito Oficial) guarantee allows banks to finance up to 100% of the property purchase price for eligible buyers, with the government guaranteeing 20% of the loan. The goal is to help more people buy their first home without needing a large deposit.

Applicants must be:

• Under 35 years old, or a family unit with dependent minors (no age limit in that case).
• Resident in Spain with a valid DNI or NIE, and proof of two years' continuous residency.
• On a gross annual income below €37,800 per person. For couples, the limit is €75,600 combined, and can go higher depending on number of children.
• Purchasing their first home to use as a primary residence.
• Meeting mortgage eligibility standards with a participating bank.

How long is the ICO scheme available?

The ICO guarantee is available for mortgage applications submitted until December 31, 2025. An extension of two years may be considered depending on uptake and government plans.

Which banks support the scheme?

You can apply through most major Spanish banks that already partner with the ICO. This includes BBVA, CaixaBank, Sabadell, Santander, and dozens of regional banks. In total, more than 30 institutions participate.

What is the maximum the ICO can guarantee?

The ICO guarantees up to 20% of the lower of either the appraised value or the purchase price of the property. This allows a mortgage to be granted for up to 100% of the lower value.

• If the purchase price is lower: The full 100% of the purchase can be financed.
• If the appraisal is lower: The buyer may still need a small down payment to cover the gap.

What types of properties qualify?

Properties must be purchased as a first residence. Each Autonomous Community sets its own maximum price limit. Most regions allow both new builds and resale homes, including free-market and subsidised housing. Check local limits before applying.

What are the key requirements?

• Income limits: €37,800 gross per person annually (or €75,600 for couples). Families with dependent children may qualify with slightly higher income caps.
• Asset cap: Applicants must not own property or have assets over €100,000.
• Residence rule: Applicants must live in the home as their main residence for at least 10 years.

What documentation is needed?

• Valid DNI/NIE
• Proof of continuous legal residence in Spain (2 years)
• Proof of dependent children (if applicable)
• Declaration that this will be your primary and only home
• Property’s valuation or appraisal

Additionally, your bank may request:

• Employment contract
• Three recent payslips
• Last income tax return
• Deposit contract (contrato de arras)

Is the ICO guarantee free?

Yes — the guarantee does not cost anything to the applicant. However, the mortgage interest will apply to the full loan amount, including the guaranteed portion.

Do I need to repay the guarantee?

Yes. The ICO doesn’t give you money — it guarantees part of your loan. You must still repay the full mortgage amount to your bank, including the part backed by the government.

Example:

If you buy a property for €250,000, a typical mortgage would require you to provide a €50,000 deposit (20%). Under the ICO scheme, the government guarantees that €50,000, and the bank can lend you the full amount.

You would only need to cover the buying costs (notary, tax, registration), which usually amount to around 10% of the property price.

Conclusion

The ICO mortgage guarantee is one of Spain’s most impactful housing support schemes in recent years. It makes homeownership far more accessible for young people and families who can afford a mortgage but struggle with the upfront deposit. If you meet the criteria, this scheme could be your key to buying a home in Spain in 2025.

Sources:

ICO: Avales para la compra de mi primera vivienda

La Moncloa: ICO Housing Guarantee Scheme