Grants for young people to live in Spanish villages

These are some measures that exist to help young people access housing in rural areas.

Freepik

28 May 2024, 9:00

Spain's villages and rural areas have been suffering depopulation for decades, threatening to leave their streets and houses deserted and empty. This is why this problem has been aptly named: "Empty Spain".

Around 40% of villages are at risk of depopulation. Several actions have been implemented over the years to try to solve this problem, and grants and benefits are being offered to repopulate villages. In this article, we show you the grants available for young people to live in rural areas.

According to a study by the Centre for Demographic Studies of the Autonomous University of Barcelona (UAB), more than 4,000 municipalities are facing depopulation problems, of which 1,840 have been considered at risk of irreversible depopulation, which could lead to them disappearing.

These villages, with an average of 110 inhabitants, low population densities (4.3 inhabitants/km2) and an average age of 60, have declined significantly in recent years. Strategies to encourage young people to move to rural areas, settle down and create thriving businesses are therefore crucial.

To combat depopulation, the Ministry of Ecological Transition and Demographic Challenge (MITECO) created €16.2 million in subsidies for depopulated Spain for local entities. Moreover, the Ministry earmarked €1.2 million in grants for non-profit entities and €2.6 million to boost economic activity and support rural entrepreneurship, particularly for women and young entrepreneurs.

Grants for young people to live in villages

Within the 2022-2025 State Housing Plan, there are several grants for under-35s wishing to buy a house in villages with less than 10,000 inhabitants. The grant is up to €10,800, with a limit of 20% of the purchase price, as long as the price of the house does not exceed €120,000.

Requirements for grants to repopulate Spanish villages

The requirements depend on which body is providing grants in a depopulated area. For example, government subsidies require the number of inhabitants of the village in question, as well as the property's value or that the property is used as a primary residence.

However, some non-governmental schemes may have other requirements. To find out about them, consult each initiative's guide.

Grants for young people to repopulate villages

There are many grants, benefits and tax rebates for young people interested in moving to villages at risk of depopulation or rural areas:

Grants for young people living in rural areas in Asturias

There are grants to buy or renovate primary residences in areas at risk of depopulation for young people under 35 years of age, large families or single-parent families.

Read more information here (in Spanish).

Grants for young people living in villages in Castile and Leon

There is a grant for under 36s to buy a house in villages with less than 10,000 inhabitants, or 3,000 if it is within a maximum distance of 30 kilometres from a provincial capital.

In addition, they offer a 20% reduction to young people who buy rural public housing and will act as a guarantor so that the bank will provide a mortgage of up to 97.5% of its value. The maximum price of the house cannot exceed €240,000.

Read more information here (in Spanish).

New grant to live in rural areas in the Community of Madrid

The Government of Isabel Díaz Ayuso has designed a new package of tax rebates to combat rural depopulation, which seeks to encourage young people under the age of 35 to set up their main residence in towns with less than 2,500 inhabitants. It is estimated that this measure will benefit more than 1,200 taxpayers and generate savings of more than eight million euros in the first year.

To this end, taxpayers can receive a tax rebate of €1,000 if they move to one of these municipalities in the tax period when the change of residence takes place, on the condition that they reside there for the following three tax years. In addition, young people who purchase a primary residence in one of these villages will be able to deduct 10% of the purchase price, with an annual limit of €1,546 for ten tax years.

Lastly, a 100% rebate will be granted on Property Transfer Tax (ITP) when purchasing a second-hand home and on Stamp Duty (AJD) when buying a new home.

Read more information here (in Spanish).

Grants in La Rioja for young people to live in small villages

In La Rioja, the Revive Plan has been launched, and applications can be made from 10 May. People up to 45 years of age who wish to access a home in a La Rioja village with a population of 5,000 inhabitants or less and who do not already have a home in ownership or usufruct may apply.

The amount for the property purchase, the self-promotion or the cost of the rehabilitation cannot exceed €180,000, taxes not included. The grant amount will depend on the village:

Grant for 40% of the amount, up to €40,000, will be granted in municipalities with 500 inhabitants or less
From 30%, up to €30,000, in villages with 501 to 2,000 inhabitants
From 20%, up to €20,000, in villages with between 2,001 and 5,000 inhabitants

Read more information here (in Spanish).

Grants in Orense for young people to live in rural areas

In Orense, the Ourense Rural es Vida project was created to repopulate small municipalities in Galicia. With a budget of €150,000 from the "Next Generation Funds", the objective is to promote entrepreneurship and remote working and bring new life to villages that are gradually becoming deserted.

Grants for young people to live in rural areas in the Region of Murcia

Under 35s can access financial aid of up to €10,800 for buying homes in villages with less than 10,000 inhabitants up to a limit of 20% of the purchase price.

Read more information here (in Spanish).