Regional incentives are the financial aids awarded by the State to productive investment to foster business activity, gearing its location towards previously determined zones and so contributing to palliating inter-regional imbalances.
Law 50/1985, of 27 December 1985 is the rule that regulates the system of incentives for regional purposes awarded by the State. The Regulations for the execution of the law were approved by Royal Decree 1535/1987 of 11 December 1987 which contemplates the different types of zones eligible to receive aid and the maximum incentive limits of each.
The specific definition of the applicable zones and of the maximum incentive limits, including the specific requirements on economic sectors, subsidisable investments and conditions, are set out in the Royal Decrees demarcating the different zones (one for each Autonomous Community).
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