Key data
| Regulation | Royal Decree 708/2026, of September 2 |
|---|---|
| Publication | September 3, 2026 |
| Entry into force | September 3, 2026 |
| Beneficiary entities | Autonomous City of Ceuta and Autonomous City of Melilla |
| Category | Grants and Subsidies |
| Grant modality | Direct (art. 22.2.c) General Subsidies Law) |
| Application deadline | 15 days from entry into force (until September 18, 2026) |
| Planning framework | Strategic Plan of the Ministry of Finance 2024-2026 |
Ceuta and Melilla will receive direct financing from the State to sustain essential infrastructure and services that cannot be covered with their own resources. The Royal Decree 708/2026, published on September 3, 2026, regulates the direct granting of these subsidies under article 22.2.c) of the General Subsidies Law, which allows bypassing competitive competition when the beneficiaries are the only entities capable of executing the actions.
The justification of general interest is reinforced by the poverty and social exclusion rates in both cities, which exceed the national average, and by the absence of conventional water resources that makes the continuous operation of desalination plants essential.
What does this regulation establish?
Royal Decree 708/2026 establishes a regime of direct granting of subsidies for two major action blocks in Ceuta and Melilla:
| Action block | Description |
|---|---|
| Desalination plants | Operational costs of desalination facilities, essential given the absence of conventional water resources in both cities |
| Social services | Actions in social services, education, cleaning, waste and security |
The chosen modality—direct granting—is provided for in article 22.2.c) of the General Subsidies Law and applies when the beneficiary entities are the only ones that can execute the subsidized actions. In this case, since Ceuta and Melilla are the only autonomous cities with these geographic and socioeconomic characteristics, no public call for competitive competition is appropriate.
The subsidies are included in the Strategic Plan of the Ministry of Finance 2024-2026, which guarantees their budgetary fit and continuity within the current planning framework.
Economic and operational impact
From the perspective of public spending, this regulation implies targeted financing: the funds must be used exclusively for the intended purposes and are subject to cost justification control. This has direct implications for the budgetary management of both autonomous cities:
- Desalination operational costs: The subsidy covers the continuous operation of the plants, a structural expense that would otherwise fall entirely on local budgets.
- Essential services: Funds allocated to social services, education, cleaning, waste and security relieve pressure on local treasuries that manage territories with poverty and social exclusion rates above the national average.
- Justification control: Beneficiary entities must prove the destination of the funds, which implies additional administrative burden in terms of monitoring and accountability.
- No direct impact for private companies: This regulation does not generate obligations, costs or burdens for the private sector or individual citizens.
Who does it affect?
- Autonomous City of Ceuta: Direct beneficiary entity of subsidies for desalination and social services.
- Autonomous City of Melilla: Direct beneficiary entity under the same conditions as Ceuta.
- Ministry of Finance: Granting body, responsible for controlling and monitoring spending.
- Managers and technicians of the autonomous cities: Responsible for preparing the application, the responsible declaration and the activity report with budget within the established deadline.
- Private companies and citizens: Not directly affected. This regulation does not generate obligations or costs for the private sector.
Practical example
The Autonomous City of Ceuta receives notification of the entry into force of Royal Decree 708/2026 on September 3, 2026. Its budgetary management team has 15 calendar days—until September 18, 2026—to submit the formal application to the Ministry of Finance.
To do so, it must provide two mandatory documents:
- Responsible declaration that certifies compliance with the required requirements.
- Activity report with budget detailing the planned actions in desalination and social services, with cost breakdown.
If Ceuta does not submit the application within the 15-day deadline, it loses access to the funds for that fiscal year, since direct granting does not allow automatic extension of the application deadline. Subsequent cost justification control will require that the funds received be used exclusively for the concepts approved in the report.
What should beneficiary entities do now?
- Verify the deadline: The application must be submitted within 15 days following entry into force (September 3, 2026), that is, before September 18, 2026.
- Prepare the responsible declaration: Document that certifies compliance with the requirements established in Royal Decree 708/2026.
- Prepare the activity report with budget: Must include details of planned actions in desalination and in each area of social services (education, cleaning, waste, security), with breakdown of operational costs.
- Submit the formal application to the Ministry of Finance: Following the procedure established in the Royal Decree and within the indicated deadline.
- Prepare the cost justification system: Given that the funds are targeted, it is necessary to have a monitoring system that allows proving the destination of each item to the granting body.
Frequently asked questions
Why are these subsidies granted directly and not through competitive competition?
Because article 22.2.c) of the General Subsidies Law allows direct granting when the beneficiary entities are the only ones capable of executing the actions. Ceuta and Melilla are the only autonomous cities with these geographic and socioeconomic characteristics, so an open call makes no sense.
What is the deadline for requesting subsidies under Royal Decree 708/2026?
The autonomous cities of Ceuta and Melilla have 15 days from entry into force of the Royal Decree, which occurred on September 3, 2026. The application deadline is therefore September 18, 2026.
What documents must be submitted to request the subsidy?
The regulation requires two documents: a responsible declaration that certifies compliance with the requirements, and an activity report with budget that details the planned actions and their costs.
What specific actions can these funds be used for?
The funds cover two major blocks: the operational costs of desalination plants (essential due to the absence of conventional water resources) and actions in social services, education, cleaning, waste and security.
Does this regulation generate any obligation for private companies or citizens?
No. Royal Decree 708/2026 does not generate obligations, costs or burdens for the private sector or individual citizens. It only affects the autonomous cities of Ceuta and Melilla as beneficiary entities, and the Ministry of Finance as the granting body.
Official source
View complete regulation at official source
Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-18510
