ICO guarantee for first-home buyers in Spain: conditions

What the guarantee is

The ICO guarantees part of a mortgage loan granted by a participating lender. It is not a grant and does not reduce what you owe; it lets the lender go above its usual loan-to-value ratio. The page states that the loan must exceed 80% of the lower of the valuation (tasación) and the purchase price, taxes and costs excluded, or 75% for a home rated D or better, and can reach 100% of that lower figure. The guarantee covers the portion above the threshold. It lasts the first 10 years of the mortgage, and the initial loan term must be at least 5 years.

Who qualifies

According to the ICO page:

• Age or family. Buyers who have not turned 36 at the signing of the mortgage (“No podrán tener más de 35 años en el momento de la formalización”), or families with dependent minors, with no age limit. For families with minors, the income cap rises by 0.3 times IPREM per minor, and by 70% for single-parent families.
• First home. A home that will be the buyer’s habitual residence, with no prior property ownership, subject to exceptions the page lists for certain inheritances, separation, divorce and disability.
• Number of buyers. No more than two.
• Net worth. Not more than €150,000 per buyer.
• Income. Until 18 June 2026 the cap was 4.5 times the IPREM (Indicador Público de Renta de Efectos Múltiples, the public reference index for subsidies). From 19 June 2026, the cap is tied to the IPREM in force in the province where the home is bought, at the date of the loan. With two buyers, the limits add up.
• Residence. Legal, continuous residence in Spain in the two years before the loan application. A foreign buyer must therefore be legally resident; the page does not set a nationality condition in the passages I read.
• Other. The loan must not be for a business activity, must not combine with other public guarantees, and no buyer may appear in default in the Banco de España’s credit register (CIRBE) at signing.

Price caps by region

The ICO page links to a table of maximum purchase prices per autonomous community. The figures are in a PDF that I could not read from the page text, so I give none. This is a regional element: the cap differs by community, so check the table for the community where you are buying.

Legal basis

The page names an agreement (convenio) with the Ministry of Housing and Urban Agenda (MIVAU) and article 13 of Ley 38/2003, the General Subsidies Law, which applies at signing. It cites no royal decree-law or Council of Ministers agreement. I describe the line from the ICO page, which is the source, and I did not read the convenio or any other legal text at the BOE. Treat any statement about its legal basis beyond the page as unverified.

Points the page leaves unclear

The page speaks of an energy rating “D o superior” in some places and “A-D” in its FAQ. They appear to mean the same, but the loan documents are what count. Also, the IPREM-based income rule since 19 June 2026 is stated briefly; ask the lender to give the exact euro limit for your province in writing.

Which professional to consult

A participating lender assesses eligibility and takes the application; the page describes a guarantee, not a loan from ICO. For the valuation, see property valuation for a mortgage. A lawyer registered with a Spanish bar association (colegio de abogados) can check the conditions against your situation; see mortgage lenders and property lawyers.