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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 369. Rural oportunities in Spain
Friday, October 15, 2010 @ 9:06 AM

Rural areas cover 91.3% of Spanish territory, however, accommodate only 31% of the population who, tired of the shortage of labor supply, health services and entertainment oportunities,  finally ends moving to a big city. 

This situation, ongoing for more than four decades, has left more than 3,000 deserted towns in Spain, which are a great oportunity for business.

Projects in rural areas receive grants which generally come from the European Union, which gives each member an amount designed to implement rural development programs. In the case of Spain, the budget for the current period amounts to 13.8 million euros. Of these, 7.2 million is earmarked for the promotion of initiatives in rural areas, the rest goes to direct aid to agriculture. 

These funds are  channeled through local action groups. Currently, there are about 300 in Spain, divided by regions. Composed of public entities (50%) and various culture, entrepreneurs, youth and agriculture  associations  who decide what project is awarded funding, according to the needs of each region.
 
Every one of these groups can manage around 1.5 million euros, this amount  is received every six years.Besides the subsidies, rural development action groups also assist in the management and processing of permits needed to develop these initiatives.
 
In addition, new companies created in rural areas can benefit from agreements that these development groups have with  different savings banks and banks that facilitate access to finance. 


The implementation of rural development initiatives do not necessarily entails  the purchase of land. In the case of municipal land or buildings owned by religious institutions, the way to make use of the land can also be a public concession.
 
New obtained from Expansion, translated and adapted for you by Maria de Castro
 

 

Asturias countryside by Mapicruz Antitaurina at Flickr.com



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1 Comments


Steve Smith said:
Thursday, October 21, 2010 @ 9:05 PM

The grant application system in this country is a joke. Why?

1) I applied for a NEW business startup grant. No Problem. Just start up and run your business for 10 months then you can have your grant (maybe).

2) I applied for a grant for a new greenhouse costing 4,000 euros. No problem, we will pay half. But, you have to buy a greenhouse which is the same but costs 12,000 euros.

So I am now trying to run my business on less than a shoestring budget out of my own pocket from a secondhand greenhouse which cost 500 euros.

Thanks a lot for the help!

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