HOUSING AND FINANCE ·
Spain housing 2026: TU CASA and first-home mortgage finance
Spain’s Royal Decree-Law 29/2026 of 6 October creates TU CASA to support the purchase of a first main home with a mortgage. Its key benefit for buyers is complementary public finance that may reduce the savings needed for the deposit.
David García Martín · Real Decreto-ley 29/2026
TU CASA · ICO
Up to 20% of the property value, capped at €50,000
Article 19 provides for loans at 0% interest with no fees, managed by ICO, for people buying their first main home with a mortgage, regardless of age. The amount is the lower of 20% of the property value and €50,000.
How it can help buyers obtain mortgage finance
TU CASA may cover part of the amount that usually requires savings and complement the bank loan. It is repayable finance, not a grant. The law does not guarantee a 100% mortgage or require banks to lend: affordability, valuation and the lender’s conditions remain decisive.
Grace period and repayment
The BOE provides for a loan term of up to ten years and a grace period matching the mortgage term, capped at thirty years. Before signing, check the actual repayment schedule and the combined burden of both debts.
Eligibility and applications
A Council of Ministers agreement must specify beneficiaries, limits, terms and the application procedure, together with implementing instruments. ICO will assess transactions under its risk policies and eligibility conditions. Publication of the decree alone does not establish that applications are already open.
Main-home use and permanent resale restrictions
The property must be used as a main home and is permanently subject to a maximum transfer price. For subsequent sales, the cap starts from the acquisition price adjusted for CPI, with possible improvements under the implementing rules. If rented out, the article also imposes a rent ceiling.
Other measures in the housing decree
The package also changes seasonal and room rentals, rental advertising, taxation and finance for affordable housing. Buyers, owners, tenants and developers may be affected. Each measure has its own conditions and, in some cases, a specific effective date.
Official BOE references
Royal Decree-Law 29/2026 of 6 October on urgent measures to protect the social function of housing and expand affordable housing supply. BOE No. 249 of 7 October 2026; reference BOE-A-2026-20823.
General entry into force: 8 October 2026, subject to the exceptions in the eleventh final provision. Checked as of 8 October 2026; consult subsequent amendments and TU CASA implementing rules before making a decision.