Tarragona is seeing more parents lend money to their children so they can buy a first home, a sign of how hard it has become for younger buyers to enter the market in Catalonia.
Local estate agent Marc Cornago said there has been a rise in zero-interest personal loans in recent times. In these arrangements, parents act like a bank, lending money that their children repay under agreed terms and deadlines.
Cornago said these private loans are legal and do not generate income tax or property transfer tax, but they must be formally declared to the Catalan Tax Agency. The declaration must be in writing and include the amount, date of delivery, lender and borrower details, and the repayment period.
He also warned that the repayment must be real and carried out, otherwise the arrangement could be treated as a disguised donation and lead to penalties. Direct donations are taxed, which is why some families are choosing the loan route instead.
The trend is growing alongside the wider housing crisis, which is making down payments and mortgage access harder for young people. That has increased reliance on support from parents and other family members.
For readers following housing and local policy across Catalonia, see our news coverage for more updates on the property market and household finances.
