The heavy rains and floods that hit Andalusia and Extremadura have become a real challenge for residents and the economy of these regions. In response to the aftermath of the disaster, the Spanish government has approved an emergency relief package worth up to 7 billion euros. This decision is intended not only to compensate for the damage but also to support the recovery of infrastructure, businesses, and agriculture in the affected areas.
Deputy Prime Minister and Minister of Finance María Jesús Montero provided details on how the funds will be distributed. According to her, the assistance will cover more than 12,400 people forced to leave their homes due to the floods. Special attention will be paid to restoring housing, supporting small businesses, and helping the agricultural and fishing sectors, which suffered significant losses from the disaster.
Emergency payments and compensation
The authorities have decided to quadruple the standard payments to those affected. For those who have been evacuated, direct subsidies of 150 euros per person per day are provided. These funds will be exempt from personal income tax and corporate tax, significantly easing the financial burden on victims.
The municipalities of Andalusia and Extremadura will receive 2 billion euros to restore damaged infrastructure. Unlike the usual practice where the state covers only part of the expenses, this time financing will be 100% and provided with immediate advance payments. In addition, local authorities are allowed to use the 2025 budget surplus to address the aftermath of the disaster. To support employment, a special program worth 50 million euros is being launched, aimed at creating jobs in the affected areas.
Tax incentives and business support
Among the key measures are exemption from property tax (IBI) and reduced economic activity tax for properties affected by the floods. If the tax has already been paid, residents will be able to get a refund. According to the Ministry of Finance, these tax breaks alone will save residents and companies around 350 million euros.
Agriculture and fisheries have not been overlooked. More than 2.1 billion euros have been allocated for direct aid to farmers whose holdings are registered in affected areas. Separate payments are designated for owners of fishing vessels from the ports of Málaga, Cádiz, and Huelva. Furthermore, to receive unemployment benefits or agrarian subsidies, the minimum number of workdays has been reduced from 35 to 5, making social support much more accessible.
Trade financing and new loans
Small businesses, particularly retail outlets and catering establishments, will receive direct payments totaling 120 million euros. Farmers affected by severe weather will have access to preferential credit lines worth 100 million euros through the state bank ICO. Compensation is also provided for insurance claims to everyone who holds the relevant policies.
During the government discussions, special attention was given to the need for long-term solutions to address the consequences of climate change. Montero emphasized that such disasters are becoming increasingly frequent and called on political forces to unite on environmental issues. In this context, it is worth recalling how authorities previously announced the full mobilization of resources to assist Andalucía, as detailed in the article on large-scale support measures for regions after natural disasters — details on previous government actions.
Context and experience of past years
In recent years, Spain has increasingly faced extreme weather events resulting in devastating floods and hurricanes. In 2023, similar support measures were implemented following heavy rains in Valencia and Murcia, when the government also allocated significant funds for infrastructure restoration and assistance to those affected. At that time, as now, special focus was placed not only on compensation, but also on creating new jobs and launching programs to mitigate the impact of future disasters. Such initiatives are becoming ever more relevant against the backdrop of climate change and the growing number of natural disasters in the country.
