It was the capital of the Encartaciones and the first city founded in Bizkaia in 1119, when the Lord of Bortedo granted it the Foro de Logroño. Its geographical location, on the royal road that joined the plateau to the Cantabrian Sea, allowed it to acquire a certain importance in the Middle Ages. This importance only increased thanks to the "Indians", as the locals were called, who left to make their fortune in the Americas. They allowed Balmaseda to develop economically and artistically, endowing it with magnificent houses of the size of the fortunes accumulated during their exile

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