Madrid unveils 58-measure reconstruction plan after Sierra Oeste wildfires burn up to 29,000 hectares
The regional government's package includes direct grants to small businesses, tax bonuses on donations, and infrastructure funding for 17 municipalities scarred by the blaze.
Damage toll
The wildfire that tore through the Sierra Oeste region consumed between 27,000 and 29,000 hectares, according to figures released on Wednesday. Around 100 primary residences were destroyed, and approximately 10,000 people remained evacuated from the 17 affected municipalities as the regional government convened an extraordinary cabinet meeting.
Immediate relief and social support
Isabel Díaz Ayuso, president of the Community of Madrid, said the administration would accompany residents through every stage of recovery. Mobile offices are providing psychological support, technical advice, and employment services, while those unable to return home are being offered temporary hotel accommodation.
We are waiting for you with open arms. Your administration, the Community of Madrid, will be there to work with you, to welcome you home, and we will not abandon you.
Social spending will be reinforced with a 10‑million‑euro allocation for the elderly and vulnerable. An 80 percent discount on water bills applies in all 17 municipalities, free veterinary care is available for pets, and a car‑sharing service has been arranged for residents who lost their vehicles.
Business and self‑employed aid
The economic centrepiece is a series of lump‑sum grants. Self‑employed workers and small businesses can claim 5,000 euros to replace work equipment and cover cleaning costs, a line backed by a maximum budget of 9.4 million euros that could reach more than 1,800 beneficiaries. Two further 5,000‑euro per‑establishment grants, each with a 2.4‑million‑euro budget, target hospitality, commerce, artisans, and industrial firms.
- Equipment replacement grants
- 9.4 € million
- Hospitality/commerce/artisan aid
- 2.4 € million
- Industrial establishment aid
- 2.4 € million
- Vulnerable social services
- 10 € million
- Municipal infrastructure
- 20 € million
New self‑employed people registering in the fire‑hit municipalities during 2027 will receive a 600‑euro incentive, while affected autónomos enjoy a zero‑tariff tax rate for six months. Avalmadrid is providing free guarantee lines, and additional subventions will support digitalisation and entrepreneurship.
Tax incentives and infrastructure
Donations up to 10,000 euros made between private individuals to repair fire damage are now fully deductible, regardless of kinship. The property transfer tax is waived on purchases of replacement vehicles and on homes bought to substitute those destroyed. All administrative deadlines have been suspended for ten working days to relieve pressure on affected families.
Infrastructure recovery is backed by 20 million euros from the Regional Investment Plan. Road repair crews will restore more than 200 kilometres of damaged carriageways, repaint lane markings, and replace vertical signage. Forest clearing, environmental restoration, and wildlife conservation programmes will run in parallel.
Long‑term recovery and EU funding
The regional executive will request activation of the European Union Solidarity Fund to help finance the reconstruction. Alongside the immediate grants and tax breaks, a training‑for‑employment plan is being rolled out in the affected towns, and free legal advice remains available. The 58‑measure package – 43 new actions plus 15 measures already active during the emergency – is designed to span short, medium, and long‑term needs, from debris removal to economic relaunch.
