Extremadura is a European region located in the southwestern part of the Iberian Peninsula and comprises two of Spain’s largest provinces: Cáceres and Badajoz.
It is the Atlantic’s gateway to Europe due to its direct and close connection to Lisbon, and ties with major Spanish cities like Madrid and Seville.
Extremadura’s labor costs are lower than other regions in Spain and Europe. It also has readily availability industrial areas at very competitive prices, and the least costly agricultural land in Spain
Extremadura has the most competitive labor cost in Spain
Extremadura's labor cost (€ 1,134) is the lowest in Spain and represents 68.4% of the national maximum.
Source: Adecco
Extremadura is an EU Convergence region (Objective 1) which allows industrial projects to benefit from maximum regional aid intensities to promote investments.
The two river basins (Tagus and Guadiana) that cross its territory and
more than 40 midland reservoirs make Extremadura the region with the most inland waterside kilometers in Spain.
The great availability of agricultural and forestry land makes it possible to offer investors exceptionally favorable prices compared to other regions in Spain.
The many annual hours of sunshine is another of the natural features Extremadura offers investors.
The percentage of public investment incentives a project can receive depends mainly on the size of the company, defined by the European Commission as follows:
| Company Size | Employees | Turnover | o | Balance |
|---|---|---|---|---|
| Small | < 50 | < 10 Millions | < 10 € Millions | |
| Medium | < 250 | < 50 Millions | < 43 € Millions | |
| Large | Not included above | |||
According to the above classification, a company could receive up to 45.35% of its investments, or 25%, in the form of non-reimbursable subsidies for the following eligible expenses:
Aid for hiring the unemployed:
Hiring unemployed individuals under 30 years of age, according to their education level.
| Modality | Maximum Aid |
|---|---|
| Terciary Education | 10,000 €* |
| Secundary Education | 8,000 € |
| Rest | 7,000 €* |
* 11.,000 € for unemployed women
Subsidies for permanent contracts:
Program 1: initial permanent contract.
Program 2: conversion of temporary to permanent contract.
| Modality | Men | Women |
|---|---|---|
| Programm 1 | 7,000 € | 7,500 € |
| Programm 2 | ,500 € | 5,000 € |
Incentives for education and training contracts:
100% reduction in social security contributions for companies with fewer than 250 employees, and 75% for 250 or more employees. No more than five years can elapse from completion of the corresponding studies.
Subsidies for RDI:
R&D subsidies: Financial support in the form of a non-reimbursable subsidy for RDI projects.
The percentage of aid granted in Extremadura is the maximum national level (80%), while on the other hand it is the region allocated the highest level of European funds (ERDF).
Eligible investments: personnel costs (technicians and managers), equipment, acquisition of new machinery, research, and general expenses.
| Type of Innovation | Small* | Medium* | Large* |
|---|---|---|---|
| Industrial | < 80% | < 70% | < 50% |
| Experimental | < 45% | < 40% | < 25% |
* Company Size
Privileged financing, maximum intensity of investment aid
% maximum incentive by type of company
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