Madrid approves the 2027 Territorial Rebalancing Plan with 4.5 million

The Governing Council of the Community of Madrid approved on September 30, 2026, the 2027 Territorial Rebalancing Plan, endowed with 4,500,000 euros in direct grant aid destined for municipalities of fewer than 20,000 inhabitants and associations of municipalities of general interest. The agreement is published in the Official Gazette of the Community of Madrid (BOCM) number 244, dated October 13, 2026, and takes effect from the day following its publication. The regulation also authorizes an advance processing expenditure for the same amount charged to the 2027 regional budgets.

The plan is based on Article 40 of Law 7/1985, of April 2, Regulating the Bases of the Local Regime, and Article 128 of Law 2/2003, of March 11, on Local Administration of the Community of Madrid, which attribute to the region, as a single-province community, the competence to guarantee inter-municipal balance and the provision of mandatory minimum services. The grants are awarded through the direct grant procedure provided for in Article 4.5.c) 2.º of Law 2/1995, of March 8, on Subsidies of the Community of Madrid, and its processing corresponds to the General Directorate of Territorial Rebalancing, under the Ministry of Presidency, Justice and Local Administration.

The expenditure is charged to budget position 46309 “Local Corporations” of program 942O “Territorial Rebalancing” of the General Budgets of the Community of Madrid for 2027, and its effectiveness is conditional upon the existence of adequate and sufficient credit in those accounts. The agreement is signed by the Minister of Presidency, Justice and Local Administration, Miguel Ángel García Martín, and by the President of the Community of Madrid, Isabel Díaz Ayuso.

Three lines of action and credit distribution

The Plan distributes the 4,500,000 euros among three lines of direct aid:

• Territorial rebalancing line: 2,500,000 euros, for municipalities of fewer than 20,000 inhabitants with the greatest demographic and economic imbalances.
• Territorial revitalization line: 1,500,000 euros, with two sub-lines.
• “Headquarters municipalities” sub-line: 1,000,000 euros.
• “Population centers” sub-line: 500,000 euros.
• Supramunicipality line: 500,000 euros, for associations of municipalities of general interest.

The grants are compatible with other subsidies, provided that in concurrence they do not exceed the cost of the subsidized activity, and are destined for current expenditure for actions within municipal competence that compensate for territorial imbalance.

142 eligible municipalities and scoring by indicators

The 142 municipalities of fewer than 20,000 inhabitants of the Community of Madrid are eligible, according to the Statistics Institute of the Community of Madrid (year 2025). The allocation is calculated using a synthetic indicator that weights four components:

• Infrastructure and equipment improvement need index: 50%.
• Inverse normalized municipal income index: 10%.
• Unemployment index: 10%.
• Index of population under 1,000 inhabitants: 30%.

The data comes from the Local Infrastructure and Equipment Survey (2023 phase), from the Municipal Data Bank of the Institute of Statistics and from ALMUDENA. Municipal and Zonal Data Bank (2025). The beneficiary municipalities are listed in Annex I (I.A, I.B, I.C, and I.D) of the agreement.

Ten head municipalities and 76 population centers

The head municipalities sub-line selects ten localities spread across eight zones, with the following amounts:

• San Martín de Valdeiglesias: 121,212.16 euros.
• Cercedilla: 116,161.61 euros.
• Villarejo de Salvanés: 104,377.10 euros.
• Torrelaguna and Buitrago del Lozoya: 101,010.10 euros each.
• Cubas de la Sagra: 95,959.59 euros.
• Robledo de Chavela and Nuevo Baztán: 90,909.09 euros each.
• Talamanca de Jarama and La Cabrera: 89,225.58 euros each.

In the population centers sub-line, the 2025 Official Nomenclator of the National Statistics Institute (INE) allows for the identification of 76 centers spread across 34 municipalities, with a total distribution of 500,000 euros. In the supra-municipal line, the only entity that meets the requirements of articles 74 bis and following of Law 2/2003 is the Mancomunidad de Interés General de Servicios Sierra Norte, which will receive 500,000 euros.

Acceptance and justification deadlines

Beneficiary municipalities and mancomunidades have fifteen business days from the day following the publication of the agreement to submit, through the General Electronic Registry, the acceptance form, the certification of the agreement from the competent body, proof of being up to date with tax and Social Security obligations, and the accountability certificate before the Court of Auditors of the Community of Madrid. If the documentation is defective, there are ten days to rectify it. Payment is made in a single installment following the granting resolution, and before March 31, 2028, beneficiaries must submit a report of the actions executed.

The measure affects the financing of basic services in the smallest municipalities of the region, where territorial dispersion and population loss strain municipal accounts. The plan reinforces the role of city councils as providers of proximity services and consolidates supra-municipal cooperation as a way to sustain equipment and infrastructure in the rural Madrid area.

Source: Official Gazette of the Community of Madrid, no. 244, of October 13, 2026, section I.C “Other Provisions”, page 186 (official reference: BOCM-20261013-22).