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Date Published: 21/03/2023

ARCHIVED - From tax cuts to free land: Spanish towns and villages offer incentives to reverse depopulation

ARCHIVED ARTICLE -

Provinces across Spain are promising all kinds of advantages to people who decided to settle in shrinking municipalities

<span style='color:#780948'>ARCHIVED</span> - From tax cuts to free land: Spanish towns and villages offer incentives to reverse depopulation

Depopulation is one of the challenges faced by hundreds of municipalities in Spain which, year after year, are seeing their population getting older and older and younger residents moving to larger towns and cities.

To try to combat these shrinking populations, many localities are offering unique incentives to maintain existing residents and attract new ones, such as giving away land in exchange for working it, offering free housing or giving newborns a kilo of bread and cheese.

Spain has almost 5,000 villages with fewer than 1,000 inhabitants, according to data from the Padrón Continuo (continuous census) published by the National Statistics Institute (INE), and the municipalities of Empty Spain.

The study also shows that 84% of towns in the interior of Spain with fewer than 5,000 inhabitants have lost a combined 58,000 people in the last five years.

So who is doing what to reverse this worrying trend? Here are some of the incentives being offered in Spanish regions.

Andalucia: free plots of land

In Vejer de la Frontera, Cádiz, the tradition of 'Hazas de la suerte', a peculiar system of communal land exploitation that has existed since 1288, still exists. Centuries ago, King Sancho IV decided to give away land as a gift to encourage people to settle in the municipality, and the offer still stands.

Every year, usually coinciding with the Christmas lottery draw, residents who were born in Vejer or have lived in the municipality for more than 20 years are entered into a draw to win one of the 232 'hazas', or plots of farmland, and exploit them for four years, which means an extra income of around 6,000 euros over the four years for the lucky winners.

Aragón: 1,400 euros and bread for newborns

In Utrillas, Teruel, the parents of children born in 2022 received one of 23 cheques for 1,400 euros, accompanied by an artisan cheese and a kilo of bread.

Six municipalities in the Somontano region (Huesca) offer new settlers a welcome kit that includes a key ring for the keys to their new home, a welcome letter, a calendar with local holidays, an album in which to leave memories of the first year, a voucher for guided tours of the region and a document with instructions for editing a family video presentation.

Asturias: tax breaks of up to 1,000 euros

In Asturias, residents of 53 councils at risk of depopulation receive deductions of up to 1,000 euros for rent, for the purchase and rehabilitation of housing, for the establishment of self-employment in rural areas or for the costs of nursery schools.

Cantabria: personalised medicine dispensing system

Here, a personalised medicine dispensing system has been implemented to strengthen healthcare for elderly patients and polymedicated persons living in rural areas.

Castile-La Mancha: deductions of up to 25% of personal income tax

There are deductions in the autonomous region's personal income tax bracket of up to 25% for taxpayers whose habitual residence is in sparsely populated municipalities.

There is also a 15 % deduction for the purchase or renovation of the main residence and for the transfer of residence for work purposes.

Castilla y León: plot of land almost free for life

In the town of Villabrágima, Valladolid, a communal distribution of land known as the 'quiñones', which dates back to the 15th century, is carried out every year. It involves giving a 2.5 hectare plot of land for life to all registered residents over 25 years of age in exchange for a symbolic fee, so that they can work the land and stay in the town.

Catalonia: 50% off housing for young people

In Torrebesses, Lleida, the town council is offering a 95% discount on building permits for people under the age of 35, and in Camarasa, Lleida, 11 public plots have been put up for sale at half price for young families.

Valencia Community: free housing for one year

El Toro in Castellón, a municipality of 281 inhabitants that has gained 43 residents in one year is offering 100 euros per month for each child up to 12 years old to keep its school open and free housing for one year to help families to settle down.

Extremadura: cash and school fees

In Madrigalejo, Cáceres, 3,000 euros is paid per birth or adoption and, in Higuera de la Llerena, Badajoz, the cost of school expenses is covered, as well as personal grooming and personalised bibs.

Galicia: up to 5,000 euros for two children

In the region of Ferrolterra, aid is allocated to families of babies born in January: 1,000 euros for the first child born, adopted or fostered; 2,000 more if the child has functional diversity, 2,000 for the second and 3,000 if the child has a disability.

La Rioja: rent and expenses

The Government of La Rioja offers a deduction of 20% on rent, electricity and gas expenses for emancipated young people under 36 years of age who have their habitual residence in small municipalities.

Murcia: help buying a home

In Murcia, young people who want to buy a home in municipalities with less than 10,000 inhabitants can receive up to 10,800 euros, with a limit of 20% of the purchase price.

Navarra: free housing

In Navarre, Azuelo Town Council, with 31 registered residents, offered to manage the civic centre, which functions as a bar and social club, with the incentive of giving the successful bidders a newly refurbished home free of charge.

Basque Country: help starting a business

In Álava, the provincial council offers a deduction of 1,000 euros for starting an economic activity in rural areas, and if the entrepreneur is a woman, they are eligible for 1,500 euros.

Image: Archive

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