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Explore real relocation incentives — from cash grants and tax breaks to startup funding — that make moving abroad or to smaller towns more affordable and rewarding.
By
Choncé Maddox
published
14 January 2026
in Features
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Moving abroad, or even to a quieter town far from a major city, isn’t cheap. But in some parts of the world, local governments are willing to help pick up part of the tab.
Facing shrinking populations, labor shortages and aging residents, certain countries and small communities now offer cash grants, housing incentives and startup funding to attract new people.
These programs aren’t about paying people to vacation overseas. They’re long-term bets on newcomers who can help stabilize local economies, start businesses or simply keep small towns alive. Here’s how these relocation incentives work, and who they really make sense for.
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Sign upWhy some places will pay you to move
Many rural towns and smaller regions are losing residents as younger people head to cities for work. Others are struggling to attract skilled workers or entrepreneurs.
Rather than letting schools, businesses and infrastructure slowly disappear, local governments are offering financial incentives to encourage people to settle down.
Remote work has accelerated this trend. With more people able to work from anywhere, smaller communities see an opportunity to compete for talent, and they’re using cash, housing subsidies and tax perks to do it.
Who these incentives actually work for
Relocation incentives tend to work best for people with flexible income and a willingness to commit long-term. That includes:
- Remote workers who don’t need a local employer
- Entrepreneurs and startup founders
- Retirees or semi-retirees with independent income
- Families willing to relocate for work and live outside major metro areas
These programs generally aren’t a good fit for people looking to move short-term or anyone expecting a no-strings-attached payout.
Chile: Startup funding for entrepreneurs and innovators
Chile has one of the best-known relocation incentives for founders through its Start-Up Chile program.
Rather than focusing on geography alone, this initiative targets entrepreneurs with scalable business ideas. Selected applicants receive equity-free government funding, mentorship, a temporary visa and access to Chile’s startup ecosystem.
Grant amounts vary by program track, but funding can reach tens of thousands of dollars. In return, founders are expected to live in Chile for a set period and actively build their business there. It’s not passive income but for the right entrepreneur, it can significantly reduce early startup costs.
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Ireland: Grants to restore vacant island homes
Ireland’s Our Living Islands initiative focuses on bringing new life to its smaller offshore islands.
The program offers generous renovation grants to people who buy and restore vacant or derelict homes on participating islands. Depending on the property, grants can reach tens of thousands of euros, helping offset renovation and relocation expenses.
There are strings attached. Buyers must meet residency requirements, follow strict renovation timelines and cover costs not included in the grant, such as planning fees, utilities and ongoing maintenance.
Still, for buyers willing to commit, the financial support can make an otherwise expensive restoration possible.
Italy: Cash incentives and €1 homes
Italy’s rural revival efforts have drawn global attention, especially the famous €1 home programs.
In many small towns, buyers can purchase abandoned homes for a symbolic price, provided they agree to renovate within a set time frame. Some regions also offer cash grants to new residents who relocate and stay for several years.
The catch is that renovation costs, property taxes and long-term maintenance are the buyer’s responsibility. These programs can be affordable entry points into Italian real estate, but they’re best suited for buyers with renovation experience, or at least realistic expectations.
For newcomers, understanding zoning rules, renovation permits and contractor logistics can be challenging, which is why guides on how to navigate renovating and relocating in Italy can help clarify what’s involved before committing.
Japan: Subsidies for rural relocation
Japan faces one of the world’s most dramatic population declines, especially outside major cities. To counter this, many municipalities offer relocation stipends, housing assistance and living subsidies.
The government and local authorities have developed a Regional Revitalization strategy, which includes financial incentives, housing support and community-integration programs designed to make rural living more attractive and economically viable. Some programs include structured community roles that may come with financial support and living stipends while participants contribute to tourism, agriculture, marketing, local services or other community needs.
In some communities, relocation incentives may also include subsidized housing, renovation assistance or support for starting a local business. Eligibility can extend to foreign residents who secure the appropriate visa, depending on the municipality.
Spain: Village bonuses for families and remote workers
Several rural Spanish villages offer modest relocation bonuses, sometimes with additional payments for children. These programs are typically run by local governments hoping to stabilize schools and services. Proof of income or employment is often required, along with a multi-year residency commitment.
Living costs are generally lower than in Madrid or Barcelona, but services can be limited, making these programs a better fit for people comfortable with slower-paced, rural living.
Prospective movers should also understand Spain’s visa and residency rules before relocating; resources outlining the immigration process to Spain can help explain key requirements and timelines.
Switzerland: Small-town cash incentives
A handful of Swiss towns have experimented with direct cash incentives to attract residents. One well-known example is Albinen, which has offered relocation payments to younger newcomers who buy property and commit to living there long-term.
The incentives can add up, especially for families, but Switzerland’s high cost of living quickly offsets the upfront cash. Housing, healthcare and taxes remain expensive, making this option best for higher-income households.
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What these relocation incentives really cover (and what they don’t)
Relocation incentives vary widely in how they’re paid. Here’s what you should know:
Upfront cash vs. reimbursements: Some programs provide direct cash grants, while others reimburse expenses after you’ve met residency or renovation milestones.
Taxes on incentives: In many countries, relocation incentives may be taxable, meaning you could owe income or local taxes on the benefit. Prospective movers should consult a tax professional to avoid unexpected tax liabilities.
Excluded costs: Most programs do not cover routine relocation expenses such as visa fees, healthcare premiums, transportation, schooling costs, or long-term housing maintenance.
Financial checklist before relocating internationally
Considering a relocation incentive? Here are a few financial steps to take before you commit:
1. Perform a cost of living analysis: Compare housing, utilities, groceries and transportation in your prospective destination using global cost calculators.
2. Account for currency risk and banking access: Understand how exchange rates will affect your income and access to banking services abroad.
3. Healthcare and insurance: Research public healthcare eligibility or international health insurance options. Many countries require private coverage for new residents.
4. Understand tax residency rules: Your tax obligations can change significantly when you relocate, both at home and abroad.
Countries that pay you to move aren’t handing out free money. They’re offering incentives in exchange for long-term commitment. For the right person, especially remote workers, entrepreneurs or retirees, these programs can make a big move more affordable. But success depends on understanding the fine print before you pack your bags.
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Choncé MaddoxSocial Links NavigationPersonal finance writerChoncé is a personal finance freelance writer who enjoys writing about eCommerce, savings, banking, credit cards, and insurance. Having a background in journalism, she decided to dive deep into the world of content writing in 2013 after noticing many publications transitioning to digital formats. She has more than 10 years of experience writing content and graduated from Northern Illinois University.
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