Madrid approves rural entrepreneurship grants for associations of municipalities

The Ministry of Presidency, Justice and Local Administration of the Community of Madrid has approved the regulatory bases for subsidies for rural revitalization and entrepreneurship aimed at associations of municipalities. The regulation, signed by Minister Miguel Ángel García Martín on September 24, 2026, is published in the Official Gazette of the Community of Madrid number 239, dated October 7, 2026, with the reference BOCM-20261007-12. The grants are organized into two lines and may reach up to 100% of the requested amount.

The text is based on the diagnosis of depopulation and the so-called “Demographic Challenge,” which particularly affects low-density rural areas. The General Directorate for Territorial Rebalancing will be the instructing body for the files, in application of Article 134 of Law 2/2003, of March 11, on Local Administration of the Community of Madrid, which prioritizes municipalities with a population of fewer than 5,000 inhabitants. The regulation is also supported by Law 38/2003, of November 17, General Law on Subsidies, and Law 2/1995, of March 8, on subsidies of the Community of Madrid.

Two lines of action: care and entrepreneurship

The bases establish two distinct programs:

• Line 1, care sector (“Cuídame” program): aimed at associations of municipalities with competencies in social services, to create and maintain care actions for non-dependent people over 65 years of age residing in municipalities with fewer than 2,500 inhabitants.
• Line 2, entrepreneurship in rural revitalization: aimed at associations of municipalities legally constituted by municipalities with a population of fewer than 20,000 inhabitants, to finance economic revitalization and rural entrepreneurship projects that contribute to population retention.

Projects in the second line will include training activities in artistic training, hospitality, languages, music and dance, plastic arts and design, and other cultural, sporting, creative, tourist, or professional disciplines linked to the rural environment. The operation and maintenance of centers, teaching activities, and complementary activities, such as concerts, music festivals, and competition calls, will be eligible for subsidies.

Up to 100% of the cost and scale by population

The aid may reach up to 100% of the requested amount, with a maximum limit per association and per line as set by each call, until the available credit is exhausted. The subsidies are compatible with other public or private aid, national or European, provided they do not exceed the cost of the subsidized expenditure.

The award will be resolved through competitive bidding, and the prioritization criteria for Line 2 total a maximum of 100 points:

• Up to 60 points for population: 60 points if at least 75% of the member municipalities have fewer than 5,000 inhabitants; 30 points if at least 50% do; and 15 points if at least 25% do.
• Up to 40 points for services already provided in the field: 25 points for more than 25 accredited months; 10 points between 12 and 25 months; and 5 points from 3 to 12 months.

In Line 1, the maximum score is 110 points, and it is required to provide at least two of the planned activities, one of which must be the meal service. In the event of a tie, priority is given to the association of municipalities (mancomunidad) with the highest percentage of small municipalities and, if the tie persists, it is resolved by lottery.

Deadlines, applications, and control

The calls for applications will be published in the Official Gazette of the Community of Madrid as an abstract, through the National Grants Database, which will disseminate the full text in the National Grant Advertising System and on the Transparency Portal. Processing will be electronic, and the application deadline will be that set by each call.

The maximum period for resolution and notification is six months from the publication of the call abstract; after this period, the application may be understood as rejected due to administrative silence. Defects in the application may be corrected within ten business days. Payment will be made ex officio through a single advance payment and with an exemption from guarantees. The order enters into force the day following its publication, October 8, 2026, and the only recourse against the bases is a contentious-administrative appeal before the High Court of Justice of Madrid within two months.

Beneficiaries must acknowledge the participation of the Community of Madrid in all their communications, specifically citing the regional program “Pueblos con vida”. The justification of less than 50% of the approved expenditure will be considered total non-compliance and will lead to reimbursement.

The regulation opens the door to stable financing for the associations of municipalities in the “emptied Spain” of Madrid, which until now faced the growing demands of their residents with limited means. Entrepreneurship and training in rural areas are thus placed at the center of the regional strategy against depopulation, with the retention of the young population as a declared objective.

Source: Official Gazette of the Community of Madrid, no. 239, of October 7, 2026, I. Community of Madrid, section I.C “Other Provisions”, p. 45 (official reference: BOCM-20261007-12).