VPO properties in Spain: What are they, and can foreigners get one?

Home prices in Spain remain some of the lowest in western Europe, except in major cities and a few élite coastal enclaves. However a buoyant property market and high demand mean buying and renting get more expensive every year. For an average wage-earner in Spain, or expatriate on a modest pension, it is not always easy to find what you want, where you want, within your budget.

You might wonder whether you can access social or subsidised housing instead. Does it exist in Spain, who is eligible for it and, as a foreigner, would you be automatically disqualified? Here are your most pressing questions answered.

Does Spain have social housing?

Spain does have social housing, but not really in the way this is understood in, for example, the USA and northern Europe. Whilst many countries have a free or heavily-subsidised rental property network for residents on extremely low or no income, such homes are very limited in Spain in comparison with the European average.

Some towns only have a small handful of council-owned properties offered at very low rent to extremely vulnerable residents, such as those who have been evicted, or large families on exceptionally low incomes. They will typically be allocated through the local social services.

What Spain considers 'social housing' is its network of 'Homes of Official Protection' (Viviendas de Protección Oficial, or VPOs). They are not designed for the very poor, as you need to be able to pay a mortgage or monthly rent on them, and the earnings threshold is usually quite high, encompassing middle-income earners who, for various reasons, have difficulty accessing housing.

What is a VPO property in Spain?

VPO homes are State-subsidised properties available for first-time buyers, lower-income households and vulnerable residents who would not otherwise be able to afford their own home. Prices are typically between 30% and 50% lower than the market figure for a similar type of residential property. Where these are new builds, value-added tax (IVA) is 4% for a VPO, as opposed to 10% on the open market. If VPO homes are pre-owned, Transmission Tax (ITP) – which is set by regional governments – is usually a few percentage points lower than for mainstream homes. The latter attract ITP ranging from 6% to 11%, whilst for a VPO, this can be between 4% and 8%.

You can apply to rent a VPO instead of buying one. Similar discounts apply for tenants – monthly fees are approximately 30% to 50% lower than for a private rental.

VPOs can be public or private developments. Public VPOs are commissioned directly by the national or regional government as the need arises, whilst private VPO developments are built at the instigation of a commercial property promotor. A common example of these would be where a developer seeks planning permission for a complex of luxury apartments, but is required by the authority to include a minimum percentage of affordable homes as a condition of their permit.

Can foreigners buy VPO homes?

VPO homes are not restricted to Spanish citizens, as this would constitute discrimination on the grounds of ethnic or national origin.

Expatriates cannot, however, move to Spain with the intention of buying a subsidised property. Likewise, neither a Spanish person nor a foreign resident can apply for a VPO as soon as they move to a different area of the country.

To be considered for a VPO, you must be able to prove at least one year's residence in the town you are currently living in. Foreigners should show their residence card when making the application, and all citizens must provide a copy of their padrón certificate, featuring the names of all members of their household.

The only applicants who do not have to prove one year's residence are those who have been relocated to a new area by the company they work for, or who have been awarded refugee status.

What are the requirements for being able to access a VPO?

Exact requirements for VPO eligibility vary from region to region, but generally:

• Your household income has to be below a certain threshold.
• You must not own any other property.
• A VPO home must be for your personal use as a main residence.
• You must be aged at least 18. There is normally no upper age limit, although in some regions, specific developments are set aside exclusively for under-35s who have never owned a property before.

You would need to show evidence that you cannot otherwise access housing. The most common example is a first-time buyer or young adult who cannot afford to move out of their parents' home. Another might be that suitable rental property would cost more than a given percentage of the household's monthly income (typically 25% or above) or that you are not earning enough for a mortgage that would cover average property prices in your area.

Butyou must be earning enough to get a mortgage or pay rent at some level. Taxes associated with buying, and mortgage interest, may be lower than for conventional home purchases, and some banks will allow a deposit below the requisite minimum of 20%.

Income aside, applicants in situations of extreme social vulnerability are eligible for a VPO almost unconditionally. Definitions of this are broader in some regions than others, but automatically encompass refugeesand gender violence or domestic abuse victims.

Various factors involving the loss of a main residence are usually accepted as justification for a VPO application. These normally include cases where your home is uninhabitable, under a demolition order, too small for your household, granted to an ex-partner, or unsuitable for a disabled member.

VPO maximum income

Upper thresholds for personal or household income differ by region. The figure is normally expressed according to the IPREM – a baseline income used for calculating who is entitled to certain non-contributory State benefits. As at 2025, the IPREM is €7,200 per year, or €600 per month, before tax.

Some regions require VPO applicants to be earning less than three times the IPREM (€21,600 per annum or €1,800 a month) for a single occupant. This will then rise by anything from 10% of the IPREM (€60 per month) to 50% of the IPREM (€300 per month) for each additional occupant. Income thresholds are slightly higher for households including occupants aged over 65, under 18, or registered as disabled with a disability grade of at least 33%.

In some regions – normally those where average property prices on the open market are higher – households income limits for a VPO application may also increase. In the Comunidad Valenciana, for example, the maximum permitted is 4.5 times the IPREM (€32,400 per annum), rising by €6,480 annually for each household member under 18, by €3,240 per year for each additional adult, and €16,200 annually for each occupant with a disability of at least 33%.

What restrictions are involved when accessing a VPO?

If even financially-comfortable and able-bodied residents would qualify for a VPO, you may wonder why anyone buys a home on the open market instead. VPOs come with restrictions, and also with drawbacks. Some of these are as follows:

1. They are very scarce

Qualifying for a VPO does not guarantee obtaining one, as very few VPOs per capita exist. Central and regional governments have announced plans to build more, but exact numbers are likely to be in the tens of thousands – for a national headcount of nearly 50 million.

Consequently, allocation is prioritised by applicants' needs. If your main barrier to accessing housing is local prices, first-time buyers and lower-income households will come first. Once those in greatest need have been catered for, the success of remaining applicants be decided by drawing lots.

Due to the limited availability of VPOs, not all applicants will secure one immediately. However, since applications expire after two years, you can reapply as many times as needed while you remain eligible.

2. You cannot (normally) choose your property

When applying, you can usually state up to three towns or districts to live in, plus property size or number of bedrooms needed. But 'need' comes before 'desire': A lone occupant requesting a four-bedroomed, 150-square-metre home will not get one unless there's nothing smaller available.

Every effort is made to allocate VPOs in the applicant's current home town, especially where this is necessary for work, school, or hospital treatment. VPOs are typically built in convenient, central and safe areas. Also, VPOs are usually flats, not houses.

With VPOs on a private development, you can sometimes choose between available homes, especially if the promotor allocates them off-plan. But local authority-commissioned VPO homes are distributed on a strict 'you get what you're given' basis.

3. Finding a mortgage lender can be difficult

Banks offer favourable terms for mortgages on VPOs – but many are reluctant to lend for them at all. You may have to shop around before you find a lender willing to take you on, even if you are financially secure.

This is partly due to sales restrictions, as detailed below, which mean a bank may struggle to recoup its losses if you default on the loan. Also, the heightened vulnerability of a successful VPO applicant means that, by definition, lenders consider these borrowers to be a greater credit risk.

4. Selling, renovating and occupancy limitations

Some restrictions apply once you have been granted a VPO:

• A price cap when selling. If you decide to move, you cannot market the property for more than the maximum amount stipulated by the regional government.
• Restrictions as to whom you can sell to. In most cases, the local town council must have first refusal – even if another buyer is willing to pay more for it. Where the council chooses not to buy it, you can only sell to someone who meets the criteria for a VPO.
• Your VPO must be your main – and only – residence. You cannot rent it out and move elsewhere, except if you have to relocate temporarily. You cannot keep your VPO property as a second home or let it as an investment.
• Some regions may restrict what refurbishments you are allowed to carry out. Redecorating, retiling and maintenance are likely to be permitted, but anything structural – except adaptations for disabled occupants – is normallyprohibited.
• VPO properties normally lose this status after a specified time. Some VPOs become what is known as 'free housing' after 10 years, whilst others may remain VPOs for 50 years.

Even on a tight budget, if you can't access a VPO or it's not for you, it's still possible to find a home in Spain at an affordable price. Here are the cheapest places to buy property in Spain at the moment.