Business development in key sectors: industry, tourism, logistics and film
Regional Incentives are a public financing tool designed to strengthen and revitalize the socio-economic fabric , promoting productive investments that contribute to the development and competitiveness of companies.
They are aimed at companies that make productive and permanent investments in strategic sectors such as industry, tourism, advanced logistics and the audiovisual sector , as well as projects for the creation and development of innovative technology-based companies.
They also seek to promote research, development and innovation (R&D&I), the incorporation of advanced technologies and environmental sustainability.
Beneficiaries: SMEs and large companies.
Application period: Available all year round.
Economic promotion zones
Excluded areas: Catalonia, Community of Madrid, Navarre and Basque Country.
Economic sectors included
Industry support services
Those that significantly favour production processes and/or the quality or innovation of the product or process, and especially those that favour the introduction of technologies for digital transformation, as well as the introduction of improvements in the environmental field.
Sectors included
that offer, on a rental basis, infrastructure and administrative and professional services.
Storage infrastructures – hardware and software.
Whose prototype phase has already been completed and based on which development is carried out in an industrial plant.
Engineering for space and aeronautical projects, engineering of high-tech products for industry, design and production of intelligent tools, robotic systems, special equipment and spare parts, technology in remote measurement systems, etc.
Recycling and recovery of waste, industrial laundry, call centres, water treatment plants (provided the water is sold), product testing laboratories, packaging and special packaging services, innovative noise and vibration control solutions and gas emissions, etc. High-tech product engineering for industry, design and production of intelligent tools, robotic systems, special equipment and spare parts, technology in remote measurement systems, etc.
Tourism sector
This initiative is aimed at tourist establishments and complementary leisure facilities that stand out for their innovative character, especially those that incorporate significant environmental improvements and increase the natural and cultural appeal of the area.
The aim is to promote high-quality rural tourism, active tourism (cultural, routes and historical interest), and offer specialised experiences that highlight the beauty of the natural or urban environment where they are located.
The facilities corresponding to the sector must be dedicated exclusively to tourist use.
Establishments involving new facilities, expansions, or modernizations of existing accommodations will be accepted provided they offer a high rating. (4-star rating in cities and 3-star rating in other locations)
Projects for the expansion or modernization of existing establishments must meet one of the following conditions:
- Assume renovations of sufficient magnitude.
- These are not replacement investments.
- No adaptations are required to comply with mandatory provisions taking into account the category of the establishment.
- They offer new complementary leisure facilities or substantial expansion or improvement of existing ones, especially introducing sustainability requirements.
Only tourist products that require accommodation will be accepted, producing a knock-on effect that encourages the establishment of hotel establishments.
Examples: theme parks, water parks, zoos, aquariums, etc.
The construction or expansion of golf courses, sports facilities for the local population, or any leisure activity that does not have the capacity to attract national or international tourists will not be permitted.
Projects aimed at creating a recording studio. Eligible investments include the construction and outfitting of facilities, editing suites, post-production and color grading rooms, as well as professional technical equipment, servers, and storage systems. Electrical installations, climate control systems, and acoustic conditioning necessary for the studio's operation may also be considered.
Economic sectors excluded from the subsidy
Companies in crisis
Steel sector
Lignite and coal sectors
Fisheries and aquaculture sectors
transport industry
Deployment of broadband networks
Energy sector
Production, processing and marketing of agricultural products*
* Listed in Annex I of the TFEU, unless the resulting product is not an agricultural product.
Subsidized projects
Minimum investments required in Canary Islands
With an approved investment equal to or greater than 300.000 euros in the islands of Tenerife and Gran Canaria and 100.000 euros in the rest of the islands, provided that they generate new jobs.
With an approved investment whose amount is significant in relation to the tangible fixed assets of the establishment and, in any case, equal to or greater than 300.000 euros in the islands of Tenerife and Gran Canaria and 100.000 euros in the rest of the islands, provided that they represent a significant increase in productive capacity , that they exceed a certain percentage on the provision for amortizations of the establishment and that they generate new jobs and maintain existing ones.
Whose approved investment is significant in relation to the tangible fixed assets of the establishment, which must in any case be equal to or greater than 300.000 euros in the islands of Tenerife and Gran Canaria and 100.000 euros in the rest of the islands, provided that they meet the following conditions:
- That the investment constitutes a significant part of the tangible fixed assets and that it exceeds a certain percentage of the depreciation provision of the establishment being modernized and that it involves the acquisition of technologically advanced machinery that produces a significant increase in productivity.
- That the investment leads to the diversification of an establishment's production to serve new and additional product markets or involves a fundamental transformation in the overall production process of an existing establishment.
- That existing jobs be maintained.
Minimum investments required in the rest of the autonomous communities : 900.000 euros.
Projects will be assessed taking into account the following criteria: job creation, endogenous factors, environmental improvements, increased productivity and technology, and their dynamic nature.
Previous requirements
Investment projects that intend to benefit from the regional incentives regime must meet the following requirements:
Judged to be technically, economically and financially viable, in accordance with the documentation provided in the application.
Have a self-financing level equal to or greater than 25%.
The company promoting the project must have a minimum level of own funds that will be set in the individual concession resolution.
The application must be submitted before the start of the investment for which the regional incentives are requested, so that the investment can only begin after the submission of said application.
The aid should have an incentive effect
The project and the investments made must be maintained for a period of 3 years for SMEs and 5 years for large companies , counted from the completion of the project.
Eligible expenses
Civil work
Capital goods
Preliminary project studies (only for SMEs)
Intangible assets
Heating, plumbing, or electrical installations; fitting out of warehouses, offices, or hotels; building renovations. Works carried out on land or in buildings belonging to others are excluded.
machinery, tools, transport equipment.
Planning, engineering, project management, safety and environmental studies. For SMEs only.
Patents, licenses, intellectual property rights and know-how.
For the tourism sector: furniture, decoration and household goods.
Maximum subsidy percentages
The maximum percentage of approved investment varies depending on the size of the company and the economic promotion zone.
Subsidy percentages in the Canary Islands:
- Small companies: 80 %
- Medium-sized companies: 70 %
- Big enterprises: 60 %
The amount of the subsidy obtained will in no case exceed 50% of the eligible costs.
object lesson
The regulations on regional incentives differentiate between approved investment (the total amount of the investment project that the administration recognizes as valid after evaluating your application) and eligible expenses (these are the expenses that can be financed according to the order of bases and which, in the case of regional incentives, are civil works, capital goods, pre-project studies, etc.).
It's important to keep in mind that the size of the applicant company will determine the maximum approved investment. Thus, in a hypothetical case where a project involves an investment of €2.000.000, the maximum approved investment will be as follows:
Company size | Small | Median | Grande |
|---|---|---|---|
Investment requested | €2.000.000 | €2.000.000 | €2.000.000 |
Maximum approved investment | 80%: €1.600.000 | 70%: €1.400.000 | 60%: €1.200.000 |
Once the maximum investment approved by the Public Administration is determined, the maximum amount the applicant can receive is determined. This maximum amount will depend on the project's eligible expenses. The maximum amount to be received will be an amount equivalent to 50% of the eligible expenses:
Company size | Small | Median | Grande |
|---|---|---|---|
Investment requested | €2.000.000 | €2.000.000 | €2.000.000 |
Maximum approved investment | 80%: €1.600.000 | 70%: €1.400.000 | 60%: €1.200.000 |
Approved eligible expenses | €1.400.000 | €1.000.000 | €900.000 |
Amount to be received as aid | 700.000 € | 500.000 € | 450.000 € |
As can be seen, different companies receive more or less funding depending on the eligible expenses of their project.
The amounts to be received by each company may vary, always respecting two limits: 50% of the eligible expenses and the maximum approved investment.
If you have a project in mind, whether in the industrial or tourism sector, contact us and we'll explore the feasibility of applying for regional incentives.