canary islands housing grants 2026

Housing grants in the Canary Islands: your 2026 guide

Compiled with the help of artificial intelligence, based on Spanish-language information. Source below the article.

For a young person to get access to a home has become an almost impossible mission in the Canary Islands. The shortage of public housing, rising rents, high purchase prices, the growth of tourism and the difficulty of making ends meet have pushed back youth emancipation to beyond the age of 30 on average. Against this backdrop, and with the elections of 29 November approaching, public aid is taking centre stage as a key tool in attempts to ease the situation.

The Canary Islands offer a range of measures to make housing more accessible, from tax advantages for buying or renting to mortgage guarantees and municipal subsidies. Some remain available, others are about to close their application windows and several, despite having been approved, are still waiting to be launched. These are the housing grants in the Canary Islands in 2026, the requirements to access them and which programmes cannot yet be applied for.

ICO guarantees for a first home

For those who want to buy their first home, the Official Credit Institute (ICO) is keeping its line of guarantees open until 31 December 2027. The programme is aimed at young people who have not turned 36 at the time of signing and at families with dependent children, with no age limit. The measure allows the State to guarantee up to 20% of the mortgage loan, a figure that can reach 25% if the property has an energy rating of D or higher.

Under normal conditions, banks tend to finance up to 80% of the purchase price, meaning the buyer needs to have the remaining 20% saved, plus the costs and taxes associated with the transaction. With this guarantee, the State backs part of that loan which would otherwise fall outside bank financing. However, the guarantee does not remove the obligation to repay the mortgage, nor does it guarantee that the bank will grant it.

Among the requirements are a maximum purchase price of 250,000 euros and an income that, as a general rule, cannot exceed 38,800 euros gross per year per person, equivalent to 4.5 times the IPREM. This limit rises to 5.5 times the IPREM in certain cases and to 7.5 times in the province of Santa Cruz de Tenerife, depending on the specific terms of the programme. In addition, the buyer’s net worth cannot exceed 150,000 euros.

Tax relief when buying

Buying a second-hand home means paying Property Transfer Tax (ITP), whose general rate in the Canary Islands is 6.5%. However, the Canary Islands’ budget legislation for 2026 provides for reduced rates for certain buyers of a main residence. In the cases envisaged, if the property costs less than 200,000 euros, the rate can fall to 5%. For buyers aged between 35 and 40 who meet the established income limits, a rate of 4% may apply. For certain officially protected homes (VPO) that constitute a first property, taxation can be reduced to 0%, provided the legal requirements are met.

These tax breaks seek to reduce one of the main obstacles to accessing a home: the upfront costs the buyer must cover, beyond the mortgage deposit. Those who opt for a new-build property can also benefit from tax advantages. In certain cases, Canary Islands legislation establishes reduced rates of the Canary Islands General Indirect Tax (IGIC) for the purchase of a main residence. The measures set age limits of up to 40, income of up to 46,455 euros per year — 61,770 euros for joint taxation — and a maximum taxable base of 200,000 euros.

The applicable rate depends on the conditions of the transaction and the specific legal case. It is therefore advisable, before signing the sale, to check which tax rate applies to each case and whether all the requirements for the reduction are met.

Deductions for tenants

Support for housing is not limited to buying. Those who rent can also benefit from tax deductions on their main residence. In the Canary Islands, the regional deduction can reach 24% of the amounts paid in rent, with a general maximum of 740 euros per year, rising to 760 euros for those under 40. To access it, applicants must meet the established income limits and, among other conditions, rent must account for more than 10% of the corresponding taxable base. This is a form of aid applied through the income tax return, whose conditions are worth reviewing before filing it.

Municipal and island support for renters

In Las Palmas de Gran Canaria there is a municipal line that can cover up to 80% of rent, with a maximum of 750 euros per month, for people who meet the requirements on residence, income and financial situation. Conditions include being registered as a resident in the municipality for at least two years and not exceeding an income equivalent to 2.5 times the IPREM. However, processing is currently limited to emergency situations, so it does not operate as a general call open to all young people seeking housing.

In Santa Cruz de Tenerife, support with rent and mortgage payments is channelled through Economic Social Assistance Benefits, subject to an assessment of each situation and to municipal requirements.

La Palma grants closing today

The island of La Palma has two specific lines of support for young people’s housing whose application deadlines close today, 13 October, at midnight. The first is the Hipoteca Joven La Palma, aimed at people aged between 18 and 35 who have bought or built their first home on the island since 1 January 2026. The property cannot exceed 250,000 euros and the subsidy can reach 15,000 euros per home.

The second measure is intended for young renters on the island. The aid covers 50% of the rent, with a maximum of 300 euros per month throughout 2026, in line with the conditions of the call. In both cases, it is important to check the rules and the documentation required before submitting an application, especially given that the deadline ends tonight.

The Hipoteca Joven Canaria: approved but not yet available

Alongside the measures already available, the Canary Islands have new programmes on the table aimed at making it easier for young people to buy and rent. The problem is that being approved does not mean they can already be applied for. The Government of the Canary Islands has approved the Hipoteca Joven Canaria, regulated by Decree 123/2026, an initiative that seeks to facilitate the purchase of a first home through a regional guarantee that would allow up to 95% of the price to be financed.

The programme is aimed at people up to the age of 40 and at families with dependent children, with no age limit. Among the conditions envisaged are a maximum price of 250,000 euros, a maximum net worth of 150,000 euros and an income not exceeding five times the IPREM. However, the measure is not yet operational. The official website itself acknowledges that the programme is not available and that applications will have to be processed through the participating banks.

The regional government had set September as its target for getting it up and running. CaixaBank, Cajasiete and Cajamar had shown interest, but at the end of that month the framework agreement order and the call for banks to sign up were still pending. The Council of Ministers authorised on 26 September for the Canary Islands to grant 3 million euros in guarantees for the programme. Therefore, although the regional guarantee is approved, young people who want to take advantage of it must still wait for the necessary procedures to be published before it can be launched.

The State Housing Plan 2026-2030

The new State Housing Plan 2026-2030 also includes specific measures to make it easier for young people to access a home. The Canary Islands will receive 371 million euros under the plan, although the effective availability of the aid will depend on the development and publication of the corresponding calls. Among the measures planned for those under 36 are rental aid of up to 300 euros per month, with a maximum of 200 euros for renting a room and a limit of 60% of the rent.

A subsidy of up to 15,000 euros is also envisaged, with a maximum of 20% of the purchase price, to buy or self-build a home in municipalities of 10,000 inhabitants or fewer. The plan also includes aid linked to rent-to-buy schemes for permanent protected housing. Its application in the Canary Islands depends on the Canary Islands Housing Institute (ICAVI) approving and publishing the relevant calls. In the meantime, the regional government is keeping its own Housing Plan 2026-2030 in public consultation.

How to apply for each grant

Applying for housing grants to buy or rent in the Canary Islands involves different procedures depending on the type of benefit. To access the ICO mortgage guarantee, applicants must go to a participating bank, such as CaixaBank, Santander, BBVA, Sabadell, Bankinter, Cajamar or Cajasiete. The bank will assess the applicant’s solvency and process the guarantee. The usual documentation includes a DNI or NIE, proof of residence registration, the income tax return and certificates proving that the requirements are met.

When buying a home, the tax advantages are applied through different channels: the ITP reduction is requested by submitting form 600 to the Canary Islands Tax Agency, while the reduced IGIC on new housing is applied directly by the developer if the required conditions are met. The corresponding regional deductions are included in the annual income tax return.

For the island grants for young renters and the Hipoteca Joven, applications are submitted to the relevant island council, through its electronic office or at the authorised registries, together with the required forms and documents, such as the rental contract or the title deed, proof of residence registration and information on income.

Those who want to access a protected home must register with the Canary Islands Register of Applicants for Protected Housing, through the regional government’s electronic office. This registration allows applicants to opt for protected housing for purchase or rent, including those from Visocan, provided the established requirements are met. Finally, the Hipoteca Joven Canaria will have to be processed through the banks signed up to the relevant agreement, while the new grants under the State Housing Plan 2026-2030 will depend on the official ICAVI calls. Before submitting any application, it is advisable to check the deadlines, income limits and documentation required in the current call.

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