Update: Spain’s legislative response to COVID-19
The Spanish government has implemented many legislative changes, grants, incentives, and extensions to ease the strain on business. The following are the current benefits offered.
Temporary Unemployment Measures (ERTE)
Companies can temporarily suspend work contracts or reduce hours while keeping their employees on their payroll. Employees receive up to 70 percent of their original salary for the first six months and 50% from the seventh month. However, the company must continue to pay social contributions.
Self-employed individuals may qualify if their revenues have fallen at least 75 percent within the timeframe of the state of emergency.
Small Business Tax Payment Deadline Extension
Companies generating less than €6 million can apply to postpone their corporate tax debt for six months without accruing interest for the first 3 months. Debts cannot exceed €30,000 and only apply to payments owing from between March 13, 2020 and May 30, 2020.
Businesses with less than €600,000 in annual revenues can apply for a VAT payment deferral until May 20, 2020.
Extraordinary Insurance Provision for Exporters
Qualifying SMEs and larger companies may extend the insurance coverage of their existing export insurance program by six months.
Guaranteed Loan Scheme
The Spanish government has secured guarantees on new or renewed lending through the Bank of Spain and accredited financial institutions. The first half of funding is earmarked for SMEs and the self-employed with a 60 percent guarantee and the remainder is for larger businesses with a 70 percent government guarantee. Companies should apply through their financial institution. Rates depend on the lender.
While this information is correct at the date of publishing, we recommend you contact us for assistance. We are here to help you navigate these new various legislative changes, grants, and incentives and the impact they may have on your business.