In the heart of rural Galicia, a small municipality in the province of Ourense has achieved what seemed impossible just a decade ago: reversing its alarming population decline and becoming a European benchmark for innovation. San Xoán de Río, with just over 500 registered inhabitants, has gone from losing dozens of residents each year to being recognized by the European Commission as the first Startup Village in Spain, a designation that certifies its capacity to attract entrepreneurs and boost the local economy.
The road has not been easy. When Xosé Miguel Pérez Blecua, a telecommunications engineer, took over as mayor in 2019, the municipality was suffering from an unstoppable population decline. In the 80s, it had over 3.000 residents; when he took office, there were barely 505 left . The new mayor, first leading an independent group and then under the banner of the People's Party, was clear that the solution lay not in waiting for handouts, but in building a project that would make living in rural areas attractive.
Housing as a first step
The first area addressed was housing. San Xoán de Río joined the RE-HABITA RURAL LAB project, an initiative encompassing nine municipalities in Ourense that received €260.941 from the Ministry for Ecological Transition and the Demographic Challenge. Technical teams have visited the parishes, photographing each house to create a map of disused buildings . This inventory serves as the basis for a social housing rental pool, prioritizing women, based on the argument that they are the ones who stabilize the population and boost the local economy.
The results were immediate. By June 2026, the program had already received over 170 requests for advice across the nine municipalities , with nearly 60% of the inquiries related to grants and financing for construction projects. The developers estimate that more than 40% of homes in the province of Ourense are vacant, the highest percentage in Spain, according to data collected by Infobae. This pool of unused housing has become the raw material upon which the next phase is being built.
European certification
With that foundational work underway, the municipality took a step that initially generated skepticism: becoming a Startup Village certified by the European Commission. San Xoán de Río was the first Spanish town to obtain this distinction, along with the neighboring municipality of A Pobra de Trives , under the name Startup Village of Val do Navea. “When we did it, many people said it was pointless,” Pérez Blecua acknowledged in statements reported by Somos Comarca.
The exercise involved organizing all available information on infrastructure, network coverage, land, and services so that any investor or entrepreneur can assess the conditions for setting up operations without months of paperwork . According to the mayor, the digitization of municipal planning was a crucial element. Investors need legal certainty and the ability to explore opportunities without traditional bureaucracy, and that is precisely what this Ourense municipality now offers.
Rural Valley, the campus that will shape the future
The fruits of that certification have arrived with the Rural Valley project, a residential campus to be built in the former Os Biocos hostel. The plan includes the renovation of the building and the construction of 50 cabins, 30 of which will be for startup founders staying for 12 months ; another 10 will accommodate short stays for entrepreneurs and investors; and the remaining 10 will be for campus staff.
The monthly fee will be €350 and will include accommodation, meals, a gigabit fiber optic connection, mentoring, prototype development, hackathons, and meetings with investors . The program also offers scholarships for those who cannot afford this cost, as is the case in other entrepreneurship workshops aimed at boosting rural development , explained Talía Jiménez, the project manager. The first cohort is scheduled to begin in March 2027, with the goal of bringing together 120 entrepreneurs per year.
But Rural Valley won't be a bubble disconnected from the town. The program includes a community service hours program through which entrepreneurs will collaborate on activities with local residents , ensuring that the campus is integrated into town life and doesn't function as an isolated space. The idea is that the influx of external talent will also benefit the local community.
Brussels rewards the social aspect
San Xoán de Río's commitment has not gone unnoticed by European institutions. In the list published by the European Commission on April 21, the municipality appeared among the winners of the European Capitals of Inclusion and Diversity Awards , in the category of local authorities with fewer than 50.000 inhabitants, taking home the bronze medal in the fifth edition. A year earlier, it had reached the final of the specific award for inclusive housing.
The recognition rests on three main pillars: the 'Mulleres de Río' program, which empowers older women in local governance; institutional declarations on LGBTIQ+ rights; and 'Rural SocialTech,' which focuses on digital skills and the social economy , connected to the telegerontology program that originated from the mayor's personal experience, as his grandmother had to leave her village due to lack of care. San Xoán de Río allocates 20% of its annual municipal budget to inclusion policies, a percentage well above the average.
A replicable model for rural Spain
The case of San Xoán de Río comes at a time of re-evaluation of the term 'Empty Spain'. Voices from the tourism and territorial marketing sectors are beginning to question this label because, they argue, it ends up constructing a reality of 'emptiness' that discourages investment , as a report by Hosteltur points out. What this municipality in Ourense demonstrates is that, with a housing portfolio, connectivity, and a well-defined project narrative, villages can transform from 'empty' to net recipients of entrepreneurs.
The initiative has sparked interest in other rural areas of Spain. A roundtable discussion organized by Promarca in February 2026 brought together Mahou San Miguel, Deoleo, and Danone to explain how they create jobs in rural areas , and the cosmetics company CISTUS, from Peralta de Alcofea (Huesca), plans to open a physical store and laboratory in its hometown after being recognized as the Best Spanish Natural Cosmetics Brand. These are signs that talent can take root far from major cities if there is minimal infrastructure and institutional support.
The mayor of San Xoán de Río, who also serves as the provincial deputy for Demographic Challenge, insists that the key lies in providing opportunities for those who already live in rural areas and attracting those seeking a higher quality of life . “There is no town without a future, only without a project,” he asserts. And his project, to transform a municipality of half a thousand inhabitants into a magnet for entrepreneurs from around the world, is already yielding results: building permits have multiplied, owners of inherited homes are deciding to renovate them, and the municipal register has stopped declining.
There is still a long way to go, and the mayor himself acknowledges that the structural change will take 10 to 15 years. But what San Xoán de Río is doing demonstrates that a small municipality can become a European benchmark for rural innovation , changing the way it is perceived and attracting a new generation of residents who are looking for something more than a big city.