Valle de Valdelucio subsidizes 50% of the ICIO to curb depopulation

The City Council of Valle de Valdelucio has definitively approved the modification of the regulatory ordinance for the tax on constructions, installations, and works (ICIO), which introduces a 50% rebate of the quota, with a maximum limit of 7,500 euros, for the construction or rehabilitation of housing and for small businesses. The plenary agreement, adopted on May 29, 2026, is published in the Official Gazette of the Province of Burgos number 170, dated September 8, 2026, with reference BOPBUR-2026-03714.

As no claims were filed during the public exhibition period, the initial agreement was automatically elevated to definitive, in compliance with article 70.2 of Law 7/1985, of April 2, regulating the Bases of the Local Regime. The full text of the ordinance is made public for general knowledge.

A measure against critical depopulation

The municipality of Valle de Valdelucio (Burgos) presents one of the most critical depopulation rates in Spain, located in one of the plateau regions with the lowest density in the country, with only 3.5 inhabitants/km². Depopulation affects all of its villages, some of which have been reduced to fewer than 10 inhabitants.

Therefore, the ordinance declares works intended to combat depopulation, attract and settle families, and promote employment as being of special municipal interest or utility due to social circumstances. The general tax rate remains at 4% of the actual and effective cost of the work.

Beneficiaries and requirements

The 50% rebate applies to two scenarios:

• Construction or rehabilitation of housing within the municipal district, as a repopulation measure, proven by registry certification, public notarial deed, or cadastral certification (or, failing that, correspondence or payment receipts).
• Works intended for small industries, workshops, shops, warehouses, garages, or offices, as an employment promotion measure, proven by the registration as a self-employed worker or its modification when it coincides with the social purpose of the premises.

In the case of housing, a commitment to register on the municipal census (empadronamiento) for a period of 4 years must be formalized. Failure to comply with the required circumstances will result in the full or proportional return of the rebate received. If multiple rebates apply, the taxpayer must choose only one, as they cannot be combined.

Management and scope

The ordinance also regulates the taxable event, the taxpayers, the taxable base, and the accrual of the tax, as well as the obligation to submit the tax return-settlement within five days from the license application or the submission of the responsible declaration. Inspection, collection, infringements, and sanctions are governed by the General Tax Law. The document was signed on August 27, 2026, by the secretary-auditor, José Pérez Villar.

The measure makes Valle de Valdelucio a particularly attractive municipality for developers, residents, and small entrepreneurs wishing to build or rehabilitate, reducing the fiscal cost of their works by half. With this bonus, the city council seeks to reverse the demographic decline and stabilize the population in one of the most depopulated areas of Castilla y León, offering a direct and quantifiable incentive for those who decide to settle or start a business in the municipality.

Source: Official Gazette of the Province of Burgos, no. 170, September 8, 2026, section III. Local Administration, pág. 21-24 (official reference: BOPBUR-2026-03714).