Industrial projects

Enterprising
municipalities

“This initiative aims to contribute to attracting investments to our community”
Law 9/2021, of February 25, on administrative simplification and support for the economic reactivation of Galicia, regulates the Galician initiative of entrepreneurial municipalities with the aim of promoting the implementation and operation of business initiatives in Galicia, with full guarantees of economic sustainability and with a reduction of regulatory and administrative barriers.
This initiative has been developed since 2017, in collaboration with the Galician Federation of Municipalities and Provinces. To join, municipalities must commit to providing businesses and entrepreneurs with the following advantages:

More tax incentives

Up to 95% rebates on Real Estate Tax (IBI), Business Tax (IAE) and the Tax on Construction, Installations and Works (ICIO) for those projects involving new implementation or expansion of existing companies.

More administrative simplification

Granting of licenses for major works within a maximum period of 30 calendar days once the complete documentation and all the mandatory sectoral reports are available.

Easier access to industrial land

Discounts and the incorporation of the right of surface to promote access to business land in their municipality. More tax incentives: discounts of up to 95% on the IBI, IAE, and ICIO for projects involving new establishment or expansion of existing businesses.
The Xunta de Galicia will establish positive discrimination in the aid orders, which are called under a competitive bidding regime:

In favor of entrepreneurial municipalities

In the aid directed to municipalities and intended for investments and expenses related to the objectives of the initiative.

In favor of businesses, self-employed individuals, or non-profit entities

In the aid aimed at the establishment and operation of business initiatives in Galicia, whose projects are developed in an entrepreneurial municipality.

Regulatory references

Provincia Checkbox

Entrepreneurial municipalities:

162

Procedure

The municipality wishing to acquire the status of an entrepreneurial municipality must carry out the following actions prior to:

1.1.- Express its interest in joining the initiative by adopting, by the competent body, an agreement or resolution in which they commit to the establishment of measures aimed at promoting the establishment and retention of businesses specified in Article 80 of the aforementioned law.

The commitments acquired by the municipality include the adoption of the following measures:

  • Resolve requests for building permits where the applicant is a business or a self-employed individual and the project involves the construction of a building for the first implementation of an activity or expansion of existing facilities within a maximum period of 30 calendar days from when the municipality has the complete documentation and all the necessary sectorial reports.
  • Establish discounts on the prices of plots of municipal business land to ensure they are competitive.
  • Introduce and offer companies the possibility of using the legal figure of the right of surface.
  • Acknowledge priority in procedures and adopt urgent processing agreements for municipal procedures related to priority business initiatives.
  • Incorporate the municipality into the Investment Support System.
  • Carry out actions to review its regulatory framework aimed at good regulation.

1.2.- Approve through a plenary agreement, according to the procedure regulated by Royal Legislative Decree 2/2004, of March 5, or any future law replacing it, a modification of the fiscal regulations governing the property tax, business activities tax, and, if applicable, the construction, installation, and works tax.

This modification will aim to establish the optional discounts provided for in the state regulations governing local finances (Articles 74.2.quáter, 88.2.e), and 103.2.a) of Royal Decree-Law 2/2004, of March 5, which approves the consolidated text of the Local Finances Act) due to the presence of special circumstances of municipal interest or utility related to job creation.

These discounts will be established based on the creation of new jobs, and each municipality will develop the aspects it deems necessary based on its regulatory powers (contract type, documentation to be submitted by applicants, method of justification for maintaining the required conditions, etc.).

However, in order to ensure uniformity in the application of these discounts, in order to participate in the initiative, the fiscal regulations must include the following points:

  • The percentage of the fee to be discounted must be determined based on the number of new jobs created, respecting the following ranges:
    • At least 80% for the creation of more than 20 jobs.
    • At least 75% for the creation of between 11 and 20 jobs.
    • At least 50% for the creation of up to 10 jobs.
  • The measures concerning periodic taxes must be maintained, for each taxpayer, for at least the three full budget years following the year in which the taxable event occurs.

Interested municipalities can obtain more information about these procedures through the Doing Business Galicia Office (vicesecretaria.cei@xunta.gal) or by contacting Fegamp.

Once the prior procedures have been completed, the municipality must send its membership request to the General Technical Secretariat of the Department of Economy, Industry, and Innovation.

The request must be accompanied by documentation proving compliance with the required conditions.

  • Certificate proving the adoption of the agreement or resolution by which the municipality commits to establishing measures aimed at promoting the establishment and retention of businesses.
  • Copy of the announcements of the final approval of the modified fiscal regulations, published in the Official Provincial Gazette corresponding to the municipality.

Once the previous steps have been completed, the Technical Follow-up Committee of the Initiative (composed of representatives from the Galician Federation of Municipalities and Provinces and the Xunta de Galicia) may meet, whose task is to carry out a preliminary analysis of the compliance with the requirements established by Law 9/2021, of February 25, on administrative simplification and support for the economic reactivation of Galicia.

Subsequently, the Department of Economy, Industry, and Innovation will assess the compliance with the required conditions to acquire the status of entrepreneurial municipality, and if favorable, the declaration as an entrepreneurial municipality will be formalized by a resolution from the counselor.

Quero atopar un concello no que emprender