Madrid City Council has launched a €1.8 million grant programme for SMEs to recover part of their investment in digitalisation made in 2025. The aid ranges from 50% to 80% of the expenditure, with a maximum of €40,000 per project.
Madrid City Council has opened a new call for aid for the digitalisation of SMEs amounting to €1.8 million. The grant, corresponding to 2026, allows for the recovery of part of the money invested in technology during the previous year, provided that the expenditure was made between 1 January and 31 December 2025.
Interested companies can apply for up to €40,000 per project, with coverage varying according to the size of the workforce. For micro-enterprises (fewer than 10 employees), the aid covers 80% of the investment, with a minimum expenditure of €10,000. Small businesses (10 to 49 employees) receive 70% on a minimum investment of €20,000, and medium-sized enterprises (50 to 249 employees) obtain 50% with a minimum outlay of €40,000.
Eligible expenses and who can apply
The grant finances investments in software, hardware, sensors, automation, artificial intelligence, cybersecurity, energy efficiency, and connected mobility. It also includes initial technical training, certifications, and installation services necessary for the project. However, the product or service developed must be aimed at other SMEs, with the goal of strengthening the local supply chain.
All SMEs with a registered office and/or tax residence in the municipality of Madrid and that carry out their activity within the municipal area can apply, regardless of the sector: commerce, industry, hospitality, or health, among others.
Application period and process
The period for submitting applications is from 1 to 15 September 2026, inclusive. The processing is exclusively electronic through the Madrid City Council's website, and a digital certificate or Cl@ve is required. There is no in-person option.
The necessary documentation includes a technical report of the project, invoices and payment receipts from 2025, and proof of tax residence in Madrid.
The money is not for what you are going to do, but for what you have already done: the invoice must be from 2025.
Background and context
Madrid has already allocated €6.9 million for the digitalisation of SMEs since 2021. In the previous edition, 41 projects were supported, generating 34 new direct jobs and mobilising a total workforce of 666 workers. Funded projects included AI-based robots, cybersecurity risk analysis platforms, and virtual reality solutions for the health sector.
The new call maintains the focus on Madrid's industry 4.0, but with a nuance: projects must benefit other SMEs, not just internal improvements. Given that the funds are limited and the application period is only fifteen days, high competition is expected. Experience from previous years shows that the aid runs out quickly, so it is advisable to prepare the documentation in advance.
Additionally, this grant is compatible with other municipal aid, as long as the total cost of the investment is not exceeded.
Common mistakes that can lead to application rejection
Many applications are rejected for not including all the documentation or for submitting it late. The City Council checks that the invoices correspond to the subsidisable period and that the expenditure is directly linked to the project. A common mistake is submitting expenses incurred outside the period from 1 January to 31 December 2025.
To avoid problems, it is recommended to ensure that the invoices are in the name of the company, that the payments are justified, and that the technical report clearly describes how the project benefits other SMEs.
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