The authorities of the Community of Madrid have approved new financial support of up to €150,000 for small businesses and self-employed workers who have a business expansion project. When allocating this aid, businesses located in municipalities with fewer than 20,000 inhabitants will be given priority and additional advantages in order to strengthen the entrepreneurial environment in rural and less populated areas, as well as to remove obstacles in accessing liquidity for their projects.
Amount of Aid and Eligibility Conditions
This measure was first announced in June 2025, and it will now be implemented through an agreement of the regional government and become available from the second quarter of the current year. This financing package will be used to subsidize up to 50% of the amount needed for growth. Thus, the aid may amount to up to €140,000.
It may be increased by €10,000 if the activity is carried out in one of the 142 municipalities with fewer than 20,000 inhabitants.
For this, it is also necessary that the individual or company:
- has been operating for at least three years;
- has nine employees on staff.
In addition, the authorities will request a strategic plan from entrepreneurs, detailing business expansion, staff growth, the opening of new establishments, or modernization processes.
What the New Measure Is Intended For
The purpose of the new measure is to strengthen businesses so that they can overcome the consolidation stage, when such obstacles arise as:
- limited access to financing for expansion or digitalization;
- difficulties in finding/retaining specialists;
- the need to adapt the business to market changes.
Tax Advantages of the Region
The Community of Madrid is a “liberal” region with no regional taxes of its own and offering numerous tax benefits.
Among them:
- a further half-percentage-point reduction in the regional share of personal income tax (IRPF), planned for 2026;
- a 20% deduction from the same tax for those who move their tax residence to the region after living outside it for 5 years.
