To promote regional economic development by providing financial support for the implantation of business projects in the Autonomous Region of Galicia, with the aim of correcting the existing territorial imbalances.
Natural or legal persons with Spanish nationality, or otherwise with resident status.
a) Transformation industries and support services for production, which respect the sectorial criteria defined by the competent authorities and include advanced technology, focusing especially on environmental improvements and represent a significant improvement in the quality or innovation of the process or product, and in particular those that promote the introduction of new technologies and the provision of services in the subsectors of information and communication technologies, and those which significantly improve commercial structures.
b) Tourism establishments and complementary leisure facilities, which respect the sectorial criteria defined by the competent authorities and are of an innovative nature, especially with regard to environmental improvements and which significantly improve the endogenous potential of the area in which they are located.
Any sectors not included in the previous paragraph will be considered as excluded.
Creation of new premises, expansion and refurbishment projects, providing these are a result of a balanced composition of the different investment elements in line with the activity in question, and that the investment is in excess of 900,000 euros.
- Projects for the creation of new premises are investments that give rise to the commencement of a business activity and also create new jobs.
- Expansion projects are investments that support the development of an established activity or the commencement of others. In the case of undertaking a previously established activity that is related to the activity carried out by the beneficiary or not, the project must involve a significant increase in its production capacity. Expansion projects must create new jobs and maintain existing jobs, and exceed a given percentage of the provision for repayments for the premises.
- Modernisation projects will be considered as investments that meet the following conditions:
a) The investment forms a significant part of the tangible assets of the premises being modernised, and involves the acquisition of technologically advanced machinery that results in a significant increase in productivity, and which also exceeds a given percentage of the provision for repayments of the premises being modernised.
b) The investment leads to the diversification of the production from some given premises to provide new and additional products to the market, or which represents a fundamental transformation in the overall production process of existing premises.
c) That all of the existing jobs are maintained.
In the case of large companies, financing will only be provided for initial investments that attract new activities, or for the diversification of existing premises for new products or new innovative processes.
The investment projects must meet the following requirements:
a) Be technically, economically and financially viable
b) Have a level of self-funding available no lower than the limit indicated in the respective Royal Decrees, which in any event must be 25% or higher. The company developing the project must also have an equity level that will be defined in the individual decision to grant the loan based on the criteria defined for this purpose by the Regional Incentives Governing Council.
c) The investment may only begin after presenting the application for regional incentives.
The commencement of the investment shall be understood as meaning the start of construction work on the investment, or otherwise the first firm commitment to order equipment or other commitments that make the investment irreversible, should this occur beforehand. The purchasing of land and preparatory work such as obtaining permits and carrying out viability studies will not be considered as the commencement of work.
Investments and expenses that have begun after presenting the application for Regional Incentives will be eligible.
Applicants for the regional incentives will be able to implement the investments without having to wait for the final decision that is reached, providing they can suitably accredit, in the manner defined by the Spanish Ministry of Finance and Public Authorities, that these did not begin prior to presenting the application, without this prejudging the decision that is finally reached in any way.
The Autonomous Region may also request a notarised deed of attendance, or make physical on-site checks to verify that the investments have not begun to be made.
New or first-use fixed assets, which refer to the following investment elements:
a) Building work.
b) Capital assets, excluding external transportation elements,
c) In the case of SMEs, up to 50% of the costs resulting from studies prior to the project, including planning, project engineering and project management.
d) Intangible assets, providing these do not exceed 30% of the total eligible investment, that they are only used in the premises where the project is being carried out, that they can be inventoried, repaid, and acquired under market conditions from third parties with no connection to the buyer.
e) Other exceptional elements. Special consideration will be given to exceptional elements in projects of a unique character due to the nature of the investment.
In order to determine the amount for the eligible investments, the Regional Incentives Governing Council may define modules based on units of measurement, to ensure that market prices are not exceeded.
The approved investment for a project will only consist of the items referred to in the previous paragraph. Assets subject for investment must be purchased outright by the beneficiary, providing payment is made effectively and in full within the validity period.
The acquisition of investment assets through financial leasing may be accepted, providing the assets become the outright property of the beneficiary before the completion of the validity period for the profits, and that all payments have been made effectively and in full within this period.
The regional incentives granted may not exceed the following maximum percentages of the approved investment:
a) From 1 July 2014 to 31 December 2017: 15% for large enterprises, 25% for medium sized enterprises, and 35% for small enterprises.
b) From 1 January 2018 to 31 December 2020: 10% for large enterprises, 20% for medium sized enterprises, and 30% for small enterprises.
In the case of projects with an approved investment of more than 50 million, these maximum percentages will be established according to the regulatory framework on major investment projects in the Guidelines on state funding for regional purposes for 2014-2020.
Applications must be presented by 31 December 2020.
This funding is compatible with all of the other Support Programmes from the IGAPE.
Law 50/1985 of 27 December on regional incentives for the correction of regional economic imbalances.
Royal Decree 899/2007 of 6 July approving the Regulatory Framework for regional incentives.
Order of 23 May 1994 (Official State Bulletin of 08/06/1994)
Royal Decree 161/2008 of 8 February (Official State Bulletin No. 59 of 08/03/2008) - Delimitation of the economic promotion zone of Galicia.
Royal Decree 161/2008 of 8 February (Official State Bulletin No. 86 of 09/04/2008) Correction of errors.
Order EHA/2874/2009 of 15 October (Official State Bulletin No. 261 of 29/10/2009) Complementary regulations for processing and management
Order HAP/2444/2013 of 17 December (Official State Bulletin No. 312 of 30/12/2013) Extension of the validity period for Regional Incentives
Royal Decree 303/2015 of 24 April (Official State Bulletin No. 102 of 29/04/2015) Modification of the Regulatory Framework for Regional Incentives
Royal Decree 304/2015 of 24 April (Official State Bulletin No. 102 of 29/04/2015) Modification of the Royal Decree delimiting the economic promotion zone of Galicia
Galician Institute for Economic Promotion (IGAPE) - Telephone: 900 81 51 51
Ministry of Finance and Public Authorities:
Documentation to be presented:
Download forms from:
The percentage of funding will depend on the total amount of investment that is approved, the number of jobs created, and special attention will be given to the use of productive factors from the area, the added value rate, and where applicable, the increase of productivity, inclusion of advanced technology, and the ability of the project to stimulate the local economy.
In priority areas, the percentage of funding will be increased by 20%, within the maximum percentage limits defined for the approved investment.
Investment projects that have requested regional incentives prior to the entry into force of Royal Decree 304/2015 of 24 April (Official State Bulletin 102 of 29/04/2015) will be subject to the minimum requirements indicated at the moment of presenting the project.