As housing prices continue to rise, mortgage interest rates fluctuate, and younger generations struggle to enter the property market, many cities across Europe are stepping in with powerful programs to support first-time homebuyers. These initiatives include direct grants, tax breaks, subsidized loans, and rent-to-own schemes. In 2025, such policies are becoming essential in promoting ownership, stabilizing urban populations, and ensuring that homeownership remains within reach for young people and middle-income households. Below is a detailed look at 10 European cities offering some of the most compelling incentives for new homeowners today.
Vienna, Austria
Vienna has long been a benchmark for socially conscious housing policy. The city offers a comprehensive set of incentives for first-time buyers, including non-repayable grants of up to €10,000, with higher amounts for families with children. The regional government also offers state-subsidized housing loans with interest rates starting at just 0.5%. In addition, buyers of energy-efficient homes may qualify for extra support for ecological upgrades. Municipal subsidies may also cover connection fees to essential utilities, further reducing entry costs for new homeowners.
Lisbon, Portugal
In response to the housing affordability crisis driven by tourism and foreign investment, Lisbon has implemented a range of measures to support residents. First-time buyers are exempt from the IMT property transfer tax for homes priced under €250,000. Through the Casa Eficiente 2020–2030 program, the government offers low-interest loans at 1% for energy-efficient properties. Additionally, buyers under the age of 35 may receive grants up to €12,500. Lisbon also promotes cooperative housing models where residents purchase homes at cost rather than market price.
Brussels, Belgium
Brussels offers one of the most robust first-time homebuyer support systems in Europe. The city provides a purchase bonus of up to €25,000, depending on income and household size. For properties priced under €200,000, there is full exemption from registration fees, saving buyers as much as €12,500. Low-interest loans through local municipal banks are also available, requiring only a 10% down payment. Renovation of older homes is encouraged through grants covering up to 70% of refurbishment costs, particularly in underserved neighborhoods.
Rome, Italy
Rome is part of Italy’s national “First Home” plan, which offers subsidies of up to €15,000 for the initial down payment. Buyers under age 36 receive exemptions from registration and mortgage taxes, along with access to government-backed mortgages with interest rates of 3–3.5%. The government also guarantees up to 80% of the property value, enabling low upfront costs. Buyers purchasing energy-efficient properties may also benefit from tax credits up to €5,000 for green renovations.
Glasgow, Scotland
Scotland’s First Home Fund is one of the UK’s most attractive buyer assistance programs. In Glasgow, first-time buyers can receive grants of up to £25,000 (€29,000) toward their property. The program functions through shared equity, where the government retains a portion of the ownership to reduce the buyer’s mortgage burden. This share can be bought back over time. Additional benefits include stamp duty exemptions, and certain professions (like healthcare or education workers) receive fast-track application processing and additional support.
Gdańsk, Poland
Poland’s “Mieszkanie na Start” (Housing to Start) initiative provides sustained support for young homeowners. In Gdańsk, monthly subsidies are available to cover up to 25% of mortgage interest payments for up to 15 years. Through state bank BGK, low-interest home loans starting at 2% are available. Buyers participating in state-led rent-to-own schemes can purchase housing at construction cost over a period of 10–12 years, with no down payment required. The focus is especially strong on new energy-efficient housing developments.
Hamburg, Germany
Facing high housing demand, Hamburg supports homebuyers with grants of up to €18,000 for families with children. The city’s banks (such as KfW and HASPA) offer mortgages with fixed rates between 1.5–2%, particularly for new builds and energy-efficient properties. Renovation of older buildings is encouraged through grants for insulation and heating system upgrades. Hamburg also promotes housing cooperatives, where property is acquired at a 20–30% discount from market value through collective ownership models.
Helsinki, Finland
Helsinki runs the well-known Hitas program, which provides apartments at regulated prices below market value — in 2025, Hitas apartments start around €3,000/m² compared to the market average of €5,000/m². Buyers under 40 may also qualify for state housing loans of up to €50,000 at 1% interest. The city supports long-term rent-to-own schemes, where tenants gradually pay off the purchase price without traditional mortgage contracts. Selection for these programs is based on income level and household composition.
Ljubljana, Slovenia
Ljubljana offers direct subsidies covering up to 20% of a property’s value for young families and single parents. The national mortgage guarantee fund ensures up to 80% of the loan amount, facilitating access to credit without large down payments. New owners are exempt from property tax for the first five years, and the city allocates land for cooperative and joint housing developments, where buyers participate from the planning phase, significantly lowering overall costs and improving affordability.
Barcelona, Spain
Barcelona has responded to its housing crisis with targeted assistance for residents. Through the Compra Protegida (Protected Purchase) scheme, eligible buyers can purchase units in newly constructed developments at subsidized fixed prices. These homes are reserved for individuals or families with incomes below a set threshold. First-time buyers can also receive tax deductions of up to €6,000, and guaranteed mortgage rates are available through municipal banks. Tenants in public housing have the option to buy their unit over 20 years via a rent-to-own path.
Conclusion
Cities across Europe are recognizing that affordable housing is critical to urban sustainability and social equity. Whether through grants, tax relief, subsidized loans, or cooperative housing models, these programs are helping more people transition from renting to owning. Cities like Vienna, Brussels, Helsinki, and Barcelona demonstrate that with the right incentives, governments can successfully expand access to homeownership without compromising affordability or urban quality.
If you’re planning to buy property in Europe, understanding these local incentive programs can significantly influence your total investment cost and eligibility for financing. These cities are leading the way in creating a new model of inclusive, supportive, and future-ready homeownership.
