Grants for Living in Rural Spanish Villages

Depopulation in rural Spain has become a significant issue, leading to what is known as “Empty Spain” (La España Vaciada). To tackle this, the Spanish government has introduced subsidies and grants to encourage people to move to these underpopulated areas. These measures aim to rejuvenate rural regions, improve living conditions, and stimulate economic activity.

In recent years, after years of prefering to live in the big cities, many young people have become increasingly interested in moving to rural areas. Factors like the rising cost of housing in cities, the ability to work remotely, and the desire for a less stressful, “off-the-grid” lifestyle have all made rural living more attractive.

These changes in attitude together with the measures taken by the government means that at long last there is the chance to fix the problem of “Empty Spain”

Why Are Villages in Spain Becoming Depopulated?

Depopulation in rural areas is caused by several factors:

  • Rural Exodus: Over the 20th century, people left villages for cities, seeking better job opportunities, education, and services.
  • Aging Population: The few people left in these villages are often elderly. With a low birth rate and few young people staying, there’s no generational turnover.
  • Lack of Opportunities: Rural areas often lack infrastructure, jobs, and innovation. Residents face issues like poor digital access, economic insecurity, and limited career growth, making it harder to attract newcomers.
Causes of DepopulationEffects
Rural ExodusMigration to cities, population decrease
Aging PopulationFew young people, declining services
Lack of OpportunitiesLow investment, limited jobs

Funding Projects for Rural Transformation

To address this challenge, Spain launched a Recovery, Transformation, and Resilience Plan. This plan funds projects to help economic and social revitalization in rural areas. The initiative targets sustainable and innovative projects that generate jobs and improve the quality of life in these regions.

Key focus areas for these grants include:

  • Digitalization
  • Tourism
  • Agriculture
  • Gender equality
  • Public services

A total of €10 billion is allocated for this initiative, €7 billion of which comes from the European Next Generation EU fund.

Plan Repuebla: Revitalizing Rural Villages

The Plan Repuebla program aims to tackle depopulation by offering housing and job opportunities to people interested in moving to these areas. It works in two main phases:

  1. Collaborating with Local Councils: Local governments help identify vacant homes in rural villages that are suitable for new residents.
  2. Offering Affordable Housing: These houses are made available at low prices or affordable rental rates to attract new residents.

Plan Repuebla also provides resources about available jobs, grants, and social programs to support newcomers. The overall aim is to boost the region’s economy and maintain Spain’s cultural and natural heritage.

Grants for Young People in Rural Areas

As part of the 2022-2025 State Plan for Access to Housing, young adults under 35 who buy a home in villages with fewer than 10,000 residents can receive direct financial aid.

  • Grant Amount: €10,800 subsidy, with a limit of 20% of the home’s purchase price.
  • Home Value Limit: The home must not cost more than €120,000.
  • Residence Requirement: The property must be the buyer’s main home for at least five years.

The applicant’s annual income must also be below €24,318, and the purchase must take place after 1 January 2022.

RequirementDetails
Grant Amount€10,800 (up to 20% of the home price)
Home Price Limit€120,000
Residence PeriodMust live in the home for at least 5 years
Income Limit€24,318 annual income

Tax Deductions to Encourage Village Life

To further encourage repopulation, many Spanish regions offer personal income tax deductions for those moving to rural areas. Below are some examples:

  • Aragon: Under-35s can receive a grant for buying homes in villages with fewer than 3,000 residents.
  • Asturias: Tax deductions are available for buying or renovating homes in depopulated areas. This applies to under-35s, large families, or single-parent households.
  • Castilla y León: Grants for under-36s buying homes in villages with fewer than 10,000 people or those within 30 km of a provincial capital.
RegionTax Deductions
AragonUnder-35s in villages < 3,000 residents
AsturiasFor buying/renovating homes in rural areas
Castilla y LeónUnder-36s in villages < 10,000 people
Madrid€1,000 tax discount for villages < 2,500 people
Murcia15% deduction for buying primary residences in rural areas

Other communities like La Rioja, Galicia, and Castilla La Mancha also offer regional tax deductions for those moving to rural areas.

Conclusion

With increasing efforts to repopulate rural areas, Spain is offering numerous grants and tax benefits to encourage people to settle in these regions. Initiatives like Plan Repuebla and the 2022-2025 State Plan for Housing are making it easier for young people to afford homes in rural Spain, while regional governments provide additional tax incentives.

For further details on these grants, visit the full article on Idealista.

Other grants by Autonomous Community

List of autonomous communities that offer other types of subsidies for living in “empty Spain”:

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