REGIONAL INCENTIVES

REGIONAL INCENTIVES

Regional Incentives are the financial aid granted by the General State Administration to productive investment to promote business activity, orienting its location towards previously determined areas. They consist of non-refundable grants and are intended to alleviate inter-territorial imbalances.

The Valencian Community collaborates with the Ministry of Finance through the Regional Ministry of Finance and Economic Model.

The Regional Incentives line is co-financed by the European Regional Development Fund (ERDF) under the Multi-regional Operational Programme for Spain 2021-2027. The ERDF financial contribution represents 50% of the total aid granted. All projects that benefit from this aid are required to comply with European Union legislation, as well as to collaborate with the public administrations involved.

Beneficiaries:

  • Companies making investments in the Valencian Community in sectors considered eligible for promotion.
  • In the case of large companies, aid may only be granted for initial investments that attract new economical activities.

Promotable sectors: For the purposes provided in article 7, of the Royal Decree 166/2008, of February 8, the following will be eligible sectors:

  • Processing industries and production support services that, respecting the sectoral criteria established by the competent bodies, include advanced technology, pay special attention to environmental improvements and entail a significant improvement in the quality or innovation of the process or product and, especially , those that favor the introduction of new technologies and the provision of services in the information and communication technologies subsectors and those that significantly improve commercial structures.
  • Tourist establishments and complementary leisure facilities that, respecting the sectoral criteria established by the competent bodies, have an innovative character especially with regard to environmental improvements and that significantly improve the endogenous potential of the area.

Type of incentivized projects: Projects for the creation of new establishments, expansion of an already established activity or the initiation of a new one by the applicant company, as well as the modernization of the facilities, are eligible for promotion, provided that it is not a mere replacement investment. .

Eligible investments: The investment concepts that may be incentivized will be new or first-use fixed assets, referring to the following investment elements:

  • Civil work.
  • Capital Goods, excluding elements of external transport.
  • In the case of small and medium-sized companies, up to 50 percent of the costs derived from the preliminary studies of the project, which may include: planning work, project engineering and optional project management.
  • Intangible assets, as long as they do not exceed 30 percent of the total incentive investment, are used exclusively in the center where the project is carried out, are inventories, amortizable and are acquired under market conditions from third parties not related to the buyer .
  • Other items, exceptionally.

Requirements:

  • The approved investment must be equal to or greater than € 900,000.00.
  • The projects must meet, among others, the conditions of not starting the investment before submitting the application, the aid must have an incentive effect, have a minimum self-financing of 25%, have a minimum level of own funds that It will be established in the individual concession resolution and deemed technically, economically and financially viable.

Application period: Until December 31st, 2027 (R.D. 618/2022, of July 26).

Modality: non-refundable grant expressed as a percentage of the costs considered eligible.

Amount:

  • Up to a maximum of 15% of the approved investment for large companies, 25% for medium-sized companies and 35% for small companies. 
  • In the areas defined as priority, the percentage of subsidy that would correspond to the project for the application of the previous criteria, will be increased by 20 percent, always respecting the maximum limit established.
  • The percentage of subsidy will be related to the total amount of the investment accepted, the number of jobs created and the type of project in question (creation, expansion or modernization), among other aspects.
  • The incorporation of advanced technology into the project, the rate of added value or the increase in productivity, the dynamic nature of the project and the use of natural resources in the area will be especially valued.
  • In the case of projects with an approved investment of more than 50 million euros, this maximum percentage will be set in accordance with the provisions for large investment projects in the Guidelines on regional state aid for 2022-2027 (DAR 2021/C153/01).

Processing: telematics through the procedures indicated below:

Normative:

Regional incentives regulations

Contacts:

Service of Analysis, Management and Technical Support to Procedures of Operational Programs (General Directorate of European Funds)

Section Regional Incentives

Plaza Napoles y Sicilia, nº 10,

46003 VALENCIA

SPAIN

Phones: +34961207771, +34961207772,+34961207773, +34961207787 and +349612077093

Email: incentiusregionalscv@gva.es

More information:

Directorate General of European Funds of the Ministry of Finance