At the start of the week, a statement made in Madrid promised to be a game-changer for thousands of entrepreneurs. Regional authorities announced the upcoming approval of the 2026 budget, which includes a significant increase in financial support for the self-employed. The region plans to allocate 17.7% more funding for this purpose than before, providing a substantial boost for small businesses.
This decision came in response to recent central government initiatives that sparked a wave of discontent among entrepreneurs. While Madrid is planning to expand subsidies, on the national level there was discussion about increasing the tax burden on the self-employed, which led to sharp criticism and forced the authorities to reconsider their plans. As a result, some changes were postponed, but tensions between the two levels of government have only grown.
At a business support event, regional leaders stressed the value of independence and hard work among entrepreneurs. In their view, this sector drives sustainable growth and creates jobs. The new budget features increased direct payments for those just starting out, as well as for those working in small towns. Support for new entrepreneurs will rise to 5,600 euros, and for those launching a business in smaller cities, up to 6,200 euros.
New opportunities for both seasoned professionals and newcomers
The Madrid authorities have gone beyond just supporting newcomers. For the first time, special subsidies will be introduced for companies that have been operating successfully for more than three years. This is aimed at not only encouraging the launch of new businesses, but also supporting those who have already proven themselves in the market. In addition, the so-called ‘zero rate’ scheme is being expanded—now entrepreneurs over the age of 52 starting a new business after losing their job will also qualify. They will receive monthly payments and have their social security contributions reimbursed.
At the same time, the opposition in the regional parliament has met the initiative with skepticism. Critics argue that such measures may lead to cuts in public services and increase the influence of private companies close to those in power. However, regional authorities are confident that supporting the self-employed is key to economic growth and reducing unemployment.
Tensions with the central government
With the national government still unable to pass its own budget, Madrid’s authorities emphasize their effectiveness and ability to act proactively. Regional officials believe that adopting the budget on time and expanding support programs is not only an economic necessity, but also a political statement. Madrid is demonstrating an alternative approach to economic development by betting on citizen initiative and independence.
In the coming days, the draft budget will be reviewed by the regional parliament. If approved, Madrid’s entrepreneurs will gain access to new opportunities for growth and strengthening their businesses as early as next year. Amid ongoing disagreements between regional and central authorities, this move could serve as an example for other autonomous regions in the country.
