Madrid reinforces guarantees for off-plan home purchases with 50 million

The Governing Council of the Community of Madrid approved on November 4, 2026, the conditions for the public counter-guarantee of credit risks for mutual guarantee societies in the financing of down payments for the purchase and sale of homes under construction. The agreement is published in B.O.C.M. no. 267, dated November 6, 2026, under reference BOCM-20261106-37, and authorizes the Ministry of Economy and Finance to arrange operations up to a limit of 50,000,000 euros. The regulation seeks to facilitate the first owned home for those who can afford the installments but lack the prior savings to buy off-plan.

The text is based on an explicit diagnosis: the increasing difficulty of accessing housing, “especially for the youngest,” in a region that acts as a driver for investment, talent, and employment and that records a high demand for new homes. The measure is part of the 2026/2027 Housing Shock Plan for the Community of Madrid, which includes actions complementary to the My First Home program, including support for the financing of the deposit or down payment during the construction phase.

The chosen instrument is the counter-guarantee, provided for in Article 6 of Royal Decree 2345/1996, of November 8, and enabled in the region by Article 5 of Law 9/2010, of December 23, on Fiscal, Administrative Measures and Rationalization of the Public Sector. Mutual guarantee societies, regulated by Law 1/1994, of March 11, are non-profit financial entities that provide guarantees for SMEs and freelancers before banks and savings banks; the Community now assumes part of that risk.

Partial coverage of 70 percent

The Community of Madrid will partially cover the credit risk assumed by mutual guarantee societies in financial guarantee operations intended to facilitate the payment of the down payment. The parameters are as follows:

• The counter-guaranteed amount may not exceed, individually, 70 percent of the guarantee granted by the society for each operation.
• The risk directly assumed by the guaranteeing entity may not be less than 30 percent.
• The coverage extends to the principal and interest, with a limit of 70 percent of the formalized principal.
• The counter-guarantee extends until the extinction of the risk, as provided for in each operation.

The scope is general: it affects homes under construction for both public protection and private promotion, marketed by participating partners, real estate developers, and cooperatives.

Required solvency and agreement

Mutual guarantee societies with their registered office in the Community of Madrid that provide guarantees to their member partners in any commercial activity, without limitation based on the type of activity, and that prove economic, financial, and professional solvency, may apply. This requirement will be considered met with a solvency ratio exceeding 25% at the close of the 2025 financial year.

Interested parties must address the request to formalize a counter-guarantee agreement to the Ministry of Economy and Finance, which will be implemented under Law 9/2010 and the agreement itself. The agreement will establish the mechanisms for the periodic submission of verifiable information regarding formalized operations, conditions, evolution, and defaults.

From the guarantee to 90 percent of the appraisal

The agreement incorporates a second tier of coverage. When the buyer subrogates as the borrower and so requests, the Community of Madrid will guarantee the financing tranche necessary for the operation to reach at least 90% of the appraisal value (LTV), through the guarantee provided in the Mi Primera Vivienda (My First Home) program, in accordance with the Order of July 27, 2026, of the Ministry of Housing, Transport, and Infrastructure.

To this end, two conditions are imposed on the entities:

• The mutual guarantee society may only sign agreements with financial entities that have previously signed the Mi Primera Vivienda program agreement.
• Those entities shall be obliged to grant at least 90% of the appraisal value in mortgages derived from this agreement, if the buyer so requests.

Defaults, gratuity, and entry into force

Defaulted operations—with risk fully cancelled, fully provisioned, and duly accredited—shall be notified to the Directorate General of Economy and Industry, which will pay the amount resulting from the application of the counter-guarantee percentages, without exceeding the principal initially covered. The Community will also participate, in its percentage, in subsequent recoveries.

The counter-guarantee will be free of charge for the mutual guarantee societies, which act as mere intermediaries for the aid. The amount received by the beneficiary companies may not exceed 300,000 euros over three fiscal years, in accordance with EU Regulation 2023/2831 “de minimis”. The agreement takes effect from its publication in the B.O.C.M. and covers operations formalized since November 18, 2026; once the 50 million limit is reached, no new operations will be authorized. The text is signed by the Minister Rocío Albert López-Ibor and the President Isabel Díaz Ayuso, with code 18.010/26.

The relevance of the measure is twofold: it transfers banking risk to the public guarantee without directly subsidizing the buyer and addresses the main bottleneck for new housing in Madrid, the initial down payment. The 50 million limit acts, however, as a hard cap: once exhausted, the program ceases to admit operations even if demand remains open.

Source: B.O.C.M. (Official Gazette of the Community of Madrid), no. 267, November 6, 2026, section I.C “Other Provisions”, pp. 501-504 (official reference: BOCM-20261106-37).