[2] In the eastern end of the municipality there is a Roman milestone which belonged to the Pisorica-Flaviobriga road, which connected the present-day cities of Castro Urdiales and Herrera de Pisuerga.

Among the reasons for the foundation of the village were its protected location between mountains and the existence of a commercial road connecting to Castile and Biscay.

However, this first union with Biscay would not last much; in 1255 the town was converted back to Castile because of the disputes caused by Diego López III de Haro.

[4][5] The municipality of Balmaseda is located in very mountainous territory, in southwestern Biscay and 30 kilometers away from the province capital city Bilbao.

Balmaseda is located in the comarca of Enkarterri and it borders Artzentales, in the west, with Sopuerta in the north and Zalla in the east.

Nature park of Valley of Karrantza with Pozalagua Cave situated not far (and accessible by public buses and taxi) from Balmaseda.

Balmaseda is connected with the rest of the province of Enkarterri region and the capital city of Bilbao by the BI-636 road and by the narrow-gauge railway Feve and by bus (Bizkaibus-route number A0651).