Madrid approves direct aid of up to 100,000 euros for forest fires

The Governing Council of the Community of Madrid approved, in its meeting on October 21, 2026, the regulatory standards and the procedure for the direct granting of investment aid intended to alleviate the effects of the fires in the Sierra Oeste and to promote the economic reactivation of the area. The agreement, promoted by the Ministry of Economy, Finance and Employment, is published in the Official Gazette of the Community of Madrid (BOCM) no. 253, dated October 23, 2026, with the official reference BOCM-20261023-21, and enters into force the day following its publication.

The text is based on a finding: the forest fires recorded in the Sierra Oeste have generated “an exceptional situation” that has negatively impacted the economic activity of companies in the affected municipalities, with direct and indirect damages, mobility restrictions, activity interruptions, supply difficulties, loss of clientele, and deterioration of facilities or stock. The regional Executive warns that this impact may act as a “catalyst” for depopulation, which is why the line of aid seeks to preserve employment in the territory.

The regulation is supported by article 4.5.c) of Law 2/1995, of March 8, on subsidies of the Community of Madrid, and includes the report of October 9, 2026, from the Ministry, as well as reports from the General Counsel and the Comptroller’s Office. Funding is provided by budget allocation 79000 of Program 463A of the General Directorate of Economy and Industry.

One hundred thousand euros per beneficiary and a de minimis ceiling of 300,000

The amount of the subsidy will be 100% of the eligible expenses, with a maximum limit of 100,000 euros per beneficiary, and each applicant may only obtain one grant under these regulations. The aid is subject to the de minimis regime of Regulation (EU) 2023/2831, such that the total aid of this nature received by a single beneficiary, regardless of its purpose or the granting Administration, may not exceed 300,000 euros in any three-year period.

Investments in movable assets (machinery, equipment, vehicles, furniture) and immovable assets (construction, acquisition, or improvement of buildings and fixed installations) will be eligible, including transport, installation, and commissioning. The following are excluded:

• VAT and any fee or tax, whether deductible or not.
• Consulting linked to ordinary management or the processing of the aid.
• Second-hand equipment and acquisitions through leasing or financial leasing.
• Current expenses (supplies, rentals, insurance, personnel, advertising), except for extraordinary repair works derived from the fires.

Seventeen municipalities and activity prior to July 23

Beneficiaries may be natural persons, legal entities, and entities without legal personality that carry out an economic activity in any of the municipalities in the annex and that had started it before July 23, 2026, the date on which the national interest emergency was declared due to forest fires. The included municipalities are:

• Aldea del Fresno, Cadalso de los Vidrios, Cenicientos, Colmenar del Arroyo, Chapinería, Fresnedillas de la Oliva, Navalagamella, Navas del Rey, Pelayos de la Presa, Robledo de Chavela, Rozas de Puerto Real, San Martín de Valdeiglesias, Santa María de la Alameda, Valdemaqueda, Villa del Prado, and Zarzalejo.
• El Escorial, exclusively the hamlet of Peralejo and the Camping El Escorial (M-600, km 3.500).

It is also required to be up to date with tax and Social Security obligations and to have no debts in the executive period with the regional Treasury. The eligible period spans from August 1, 2026, to August 31, 2027.

Twenty business days and single advance payment

The deadline for submitting applications will be twenty business days from the day following the publication in the BOCM of the summary of the order declaring the available credit; subsequent credit extensions will not open a new deadline. Processing will be exclusively electronic, through the electronic headquarters of the Community of Madrid, and will require prior registration in the NOTE system. The sole priority criterion will be the chronological order of submission.

The instructing body will formulate a proposal to the head of the Ministry of Economy, Finance and Employment, who will resolve it within a maximum period of six months; once this period has elapsed without a resolution, the application will be understood as rejected by administrative silence. Payment will be made through a single advance payment without the requirement of guarantees, and the justification may be submitted until September 30, 2027.

The agreement is signed by President Isabel Díaz Ayuso and Minister Rocío Albert López-Ibor, and replaces the auditing function with permanent financial control, in accordance with the Government Council Agreement of September 2, 2026. The beneficiaries and the amounts will be published quarterly in the BOCM and communicated to the National Grants Database.

The line arrives while the productive fabric of the region is still under reconstruction and with a tight schedule: the application period will not open until the credit order is published, so affected companies must already prepare their investment report, three supplier quotes, and the census certificate from the AEAT to avoid losing their position in a distribution that will be resolved by strict order of arrival until the credit is exhausted.

Source: Official Gazette of the Community of Madrid, no. 253, of October 23, 2026, section I.C “Other Provisions”, pages 111-128 (official reference: BOCM-20261023-21).