The Spanish government announced a relief package of €200 billion to fight the economic fallout of the coronavirus crisis.
The aid package revolves around four main guidelines: 1) easing the conditions of the temporary collective layoffs, 2) supporting workers and businesses affected by the slump in activity, 3) guaranteeing liquidity for businesses, 4) supporting research to find a coronavirus vaccine.
Bynd VC gathered the main measures with an impact in the Spanish SME’s ecosystem in one document in order to facilitate access to the information.
(in constant update)
Financing / Credit Lines / Protective Measures
1. 100,000 million euros in government guarantees/companies and self-employed workers may request loans from private banks with the backing of the Government. More details in this link.
2. 400 million euros loan to cover the liquidity needs of both companies and self-employed workers.
3. 2.000 million euros insurance cover line through CESCE for working capital financing needs.
4. Extension of the ICO net debt limit by 10.000 million euros, in order to increase the amounts of ICO lines of financing for companies and self-employed workers.
5. The time limit for replying to the requirements and procedures of “Agencia Tributaria” are postponed.
6. Regulating the suspension of those public contracts which execution is affected by Covid-19.
7. “Acelera” program aiming to boost SME’s adaptation to the digital environment with a 250 million euros fund for R&D and financing the acquisition of equipment, in order to provide the necessary conditions for remote work.
1. ERTE (expedientes de regulación de empleo temporales) a simplified temporary suspension of the employment relationship between companies and employees.
a) Employees return to their jobs when the dismissal period ends.
b) Employees affected can collect unemployment benefits even if they have not yet generated the right to unemployment benefits.
c) Companies applying these ERTE are exempt from paying quotas to Social Security if they have less than 50 employees and exempt from paying 75% if they have over 50 employees. More details in this link.
2. Payment time extension of mortgages for workers affected by the coronavirus crisis. More details in this link.
3. Protection of workers from sick leave due to the virus or in preventive isolation by receiving at least 75% of base salary guaranteed by the Public Administration. More details in this link.
Regarding the fulfillment of tax obligations by companies, the time limits for such transactions have been extended, without any surcharges or penalties:
1. Deferrals of tax debts with the Administration will be granted to SMEs or self-employed workers.
a) Treasury will allow companies and the self-employed workers to defer up to 30,000 euros in the payment of taxes for six months, with a three-month grace period.
b) These deferrals will be granted for a period of six months, but the companies will have the option to return the money in three months and not pay any interest.
c) It will be allowed to postpone IRPF withholdings, passed VAT payments and fractional payments of corporation tax
2. Eligibility (all the points below must be validated):
a) Companies with sufficiently accredited damage to justify this modification.
b) Companies that are up to date with their tax obligations and Social Security.
c) Companies with no debts with the Public Administration.
d) Companies that have fulfilled their obligations of accounts presented to the Mercantile Registry.
e) When the maturity of the debt is not the consequence of a refund due to default or resignation.
f) When, in the case of projects that are within the investment justification period, there is a sufficient degree of progress and guarantees compliance with the objectives set forth in the concession resolution.
More details in this link.
Public law decrees to consult
17th of March: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2020-3824
12th of March: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2020-3580
10th of March: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2020-3434
You can also see in further detail all the extraordinary economic measures adopted by the Spanish Government in this link.