The Council of Ministers has given the green light this Tuesday to a Royal Decree-Law that puts in place urgent measures to address the damage caused by the flooding and other events recorded between 17 and 19 October 2026, resulting from the DANA Adam.
The text includes a package of extraordinary actions totaling 182.2 million euros aimed at those affected by this weather phenomenon, which hit with particular intensity the Mediterranean coast, the south of Valencia, and the north of Alicante, extending also to other areas, including the Balearic Islands. Measures are included of an agricultural, fiscal nature and in support of commerce, tourism, and the hospitality sector.
These initiatives are approved after last week the Council of Ministers declared areas severely affected, as a civil protection emergency, the territories harmed by 45 adverse events in nine autonomous communities, which took place between 13 September and 20 October 2026.
Extraordinary aid to the agricultural sector
The support package for the agricultural sector affected by the DANA Adam amounts to 88.7 million euros. In particular, the Ministry of Agriculture, Fisheries and Food is authorized to carry out emergency recovery actions on rural roads for public use and on collective irrigation infrastructure damaged by torrential rainfall, which will be considered emergency works.
Likewise, direct aid is contemplated for all farmers with agricultural insurance policies who have suffered damage from the DANA Adam. They will be paid up to 70% of the cost of the policy—the maximum allowed by Community regulations—as well as for damages not covered by the compensation from agricultural insurance, known as the franchise. The aid will be exempt from taxation.
Alongside this, financing instruments are put in place, extending the timeframes and the scope of the DANA/ICO-MAPA-SAECA line, so that those affected can access loans with a grant component equivalent to 15% of the principal and without taking on the cost of the guarantee.
Repair and reinforcement works against climate emergencies
On the other hand, 74.5 million euros are reserved for repair, protection and improvement actions driven by the Ministry for the Ecological Transition and the Demographic Challenge. Of this amount, 70 million euros are earmarked for interventions on the coasts of the Valencian Community, aimed at restoring, through emergency works, the damage suffered in the maritime-terrestrial public domain.
The regulation also allows part of these funds to be directed to new actions intended to strengthen the resilience of the Valencian coast against future storms and the impacts of climate change, within the framework of the National Strategic Plan for the Protection of the Coast.
In addition, 3 million euros are allocated to the Confederación Hidrográfica del Júcar to repair damage to riverbeds and hydraulic infrastructure under State ownership affected by the dana, and 1.5 million euros to the Confederación Hidrográfica del Segura to repair riverbeds, ramblas and damaged hydraulic infrastructure, including the drainage from the infrastructures of the posttrasvase.
Subsidies for commerce, tourism and hospitality
In the field of retail trade, tourism and hospitality, the maximum amount of the direct subsidy to be granted to the Cámara de España is set at 15 million euros.
The aid per affected establishment will be 5,000 euros in the case of self-employed workers and 10,000 euros when the final beneficiary is a small or medium-sized enterprise or an entity without legal personality.
With regard to financial and tax measures, the Royal Decree-Law allows the affected local entities to allocate the surplus for 2025, 2026 and 2027 to Financially Sustainable Investments linked to the damage from this catastrophe, and establishes that the expenses derived from this dana do not count toward the tax rules.
The door is also opened to using additional resources from the Fondo de Financiación to the Comunidad Valenciana to cover repair works and other extraordinary expenses caused by this weather episode.
Exemptions from the IBI in 2026 and reduction of the IAE
The decree also provides for the exemption of the IBI charges for 2026 for properties located in affected areas that have been the subject of rehousing, as well as a reduction of the Tax on Economic Activities (IAE) in the municipalities or damaged areas, with the State compensating local entities for the shortfall in revenue.
Similarly, specific tax reductions are expected for agricultural activities in the Personal Income Tax (IRPF) and in the special simplified VAT scheme.