TU CASA: Spain’s Interest-Free First-Home Loan of Up to €50,000

What has been approved, and can you apply?

Status checked on 9 October 2026. Article 19 of Royal Decree-law 29/2026 creates TU CASA, public financing managed by the Instituto de Crédito Oficial (ICO) for buying a first mortgaged main home. The decree-law generally entered into force on 8 October and remains subject to parliamentary validation. Recheck its legal status before making a decision.

The article leaves detailed beneficiaries, limits, financing characteristics and the application procedure to a Council of Ministers agreement and subsequent instruments. At this review date, we have not confirmed an official open application channel or a definitive application checklist. Publication of the framework does not mean that every buyer can already draw the money. This is a repayable loan, not a €50,000 gift.

How the 20% and €50,000 limits work together

The public loan is limited to the lower of 20% of the mortgaged home’s value and €50,000. It complements private financing rather than replacing the mortgage. The exact valuation basis and operational conditions should be confirmed under the implementing rules; do not assume the advertised asking price is automatically the accepted value.

Illustrative calculations using an assumed accepted value: a €180,000 home gives a €36,000 ceiling; €250,000 gives €50,000; €300,000 still gives €50,000, not €60,000. These are arithmetic examples, not approvals, lender offers or evidence that a particular property qualifies.

Keep purchase taxes, professional costs, any financing shortfall, initial works and a cash reserve in a separate budget. The public loan does not establish that the bank will lend the rest or that acquisition costs will be covered.

Plan the full costs of buying in Spain

Who is it intended for?

The published text targets people buying their first mortgaged habitual residence, regardless of age. It is not presented as financing for an investment rental or a second holiday home. The absence of an age restriction in that wording does not remove the remaining eligibility checks.

Article 19 provides for ICO risk analysis and eligibility conditions to be set in the Council of Ministers agreement. Do not import income limits, residence requirements or participating-bank lists from a different scheme. The familiar ICO first-home mortgage guarantees and this public loan are distinct mechanisms; compatibility should be confirmed rather than assumed.

Ask how first-home status, joint buyers, residence, income and the property itself will be assessed once the detailed rules are available. An estate agency cannot promise approval on the basis of a viewing or reservation.

Zero interest still leaves a repayment obligation

The text specifies 0% interest and no commissions on the TU CASA loan. It provides for repayment over up to ten years and a grace period linked to the mortgage term, with a maximum of thirty years for that grace period. Obtain the final repayment schedule and clarify early repayment, a sale or refinancing before signing.

For scale only, €50,000 spread evenly over 120 monthly repayments would be about €416.67 per month, with the final payment adjusted for rounding. This is a budgeting illustration, not an official repayment quotation. The operational schedule and commencement of payments must be confirmed.

Your private mortgage is separate and can still carry interest and its own costs. Evaluate affordability during the mortgage years and during public-loan repayment, including the possibility that your income changes. A deferred payment is not a cancelled debt.

Understand the permanent resale restriction

Article 19 requires the property to be used as a main home and imposes a permanent maximum transfer price. For second and later transfers, the text limits the price to the acquisition price updated with the consumer price index, with certain rehabilitation or improvement values potentially included under rules set by the Council of Ministers.

The restriction is to appear in the purchase deed and the Land Registry under the implementing rules. Do not assume it disappears when the loan is repaid. Have an independent lawyer explain the effect on a later sale, inheritance, refinancing or change in your circumstances before accepting the financing.

The article also specifies a rent below the applicable reference-price maximum if the home is let, according to the relevant methodology. That is not unrestricted permission to buy it as a rental investment or to stop using it as your main home. Confirm the conditions for any later change of use. Regional protected-housing rules may apply as well.

Prepare a purchase budget without relying on an unapproved loan

Use official ICO, Housing Ministry and BOE information to check the launch, application route and current terms. As preparation—not a published official checklist—gather identification, income and existing-debt records, available savings and the property details your lender and adviser request. Keep personal documents until an authorised application channel is confirmed.

Before paying a reservation or signing an arras agreement, obtain advice on financing conditions, deadlines and what happens if either the mortgage or public loan is refused or delayed. Compare a budget with TU CASA against one without it. Costa de Oro can help you assess properties and purchase costs; eligibility and lending approval belong to the relevant authorities and lenders.

Prepare your buyer checklist