- 1Spain: An attractive country for investment
- 2Setting up a business in Spain
- 3 Tax System
- 4 Investment aid and incentives in Spain
- 5 Labor and social security regulations
- 6 Intellectual property law
- 7Legal framework and tax implications of e-commerce in Spain
- AI Annex I Company and Commercial Law
- AIIAnnex II The Spanish financial system
- AIIIAnnex IIIAccounting and audit issues
- State incentives for training and employment
- State incentives for specific industries
- Incentives for investments in certain regions
- Aid for innovative SMEs
- Preferred financing of the Official Credit Institute (Instituto de Crédito Oficial or ICO)
- Internationalization incentives
- EU aid and incentives
4Incentives for investments in certain regions
4.2 Regional Aid granted by the Autonomous Communities
Some Spanish Autonomous Communities also provide similar incentives, on a smaller scale, for investments made in their regions. Only some of these incentives are compatible with EU and State regional incentives. Specifically, if State regional incentives have been applied for in connection with a given project, the maximum limits established in each Royal Decree of demarcation must be taken into account.
In fact, some Autonomous Communities grant investment incentives in areas not covered by state legislation but which are included in EU regional financial aid maps.
Most Autonomous Community incentives are granted on an annual basis, although the general conditions of the incentives do not usually change substantially from year to year.
In view of the impossibility of including a detailed description of the aid granted by each Autonomous Community, we summarize below their main and traditional features (which are generally very similar to those of State regional incentives).
Nonetheless, bear in mind that the incentives granted by the Autonomous Communities were also affected by the content of the Guidelines on regional State aid and by the limits and maximum aid intensity percentages established in the regional aid Map amended in 2016, for the 2014-2020 period (and its subsequent extension), and the regulation of these incentives should therefore have been adapted to the new framework established and must be adapted again to the regulations resulting from the new EU guidelines for 2022-2027.
4.2.1 Types of project
Opening of new establishments, expansion of activities, modernization and technological innovation. The creation of new jobs is normally required.
4.2.2 Main industries
In general, the main eligible industries are industrial support services, processing industries, tourism, culture, industrial design, electronics and computing, renewable and environmental energies.
4.2.3 Project requirements
They are basically the same as those imposed at State level.
4.2.4 Types of incentive
The main incentives are:
- Nonrefundable subsidies.
- Special conditions for loans and credit.
- Technical counseling and training courses.
- Tax incentives.
- Social security relief.