Catalan government introduces loans to assist young people with home down payments

Wednesday 18 June 2025 - 16:20

By: Dakir Madiha

Catalan government introduces loans to assist young people with home down payments

The president of Catalonia, Salvador Illa, has unveiled a new initiative aimed at easing the financial burden on young residents seeking to purchase their first home. During the opening of the 5th Foro Catalunya conference, organized by elEconomista.es, Illa announced that the government will provide loans covering 20% of a property's value, with a 0% interest rate and deferred repayment until the mortgage is fully settled.

This program, named "Emancipation Loans" (Préstecs Emancipació in Catalan), is set to receive a funding allocation of €500 million over the next five years. Illa emphasized that one of the primary challenges facing many young people today is the inability to save enough for a down payment.

The Catalan government plans to approve this new loan initiative in an upcoming Executive Council meeting. Homes financed through this program will be designated as permanently protected affordable housing, aimed at facilitating access for young people while simultaneously increasing the stock of protected housing to better align with European standards.

Illa further noted that if a property is sold in the future, the sale price will be limited to the original purchase price. He highlighted that his government is already committing a record €1.45 billion for housing in 2025 and is on track to construct 50,000 new public housing units by 2030.