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Spanish Government Announces New Series Of COVID-19 Support Measures

March 24, 2020

The Spanish government has announced a series of measures to support businesses affected by the COVID-19 crisis. Spain will provide €200 billion to support businesses affected by the outbreak. These measures include:

  • Tax payments: SMEs and self-employed individuals may defer tax payments interest-free - including income tax, corporate income tax and VAT - for a period of six months, upon request. More information on practical aspects can be retrieved here [en español] and here [in English].
  • Payment deferral for loans granted by the General Secretariat for Industry and Small and Medium-sized Enterprises, to be requested directly with the Secretariat, provided that:
  • the loan has been granted within 6 months from the entry into force of the Decree (17 March 2020).
  • the request is made as a result of liquidity issues due to the COVID-19 outbreak, such as periods of inactivity, decrease in sales or supply chain disruptions making it difficult to meet the payment.
  • the request will entail a modification of the reimbursement schedule and must include supporting documentation.
  • Instituto de Credito Oficial loans: Instituto de Credito Oficial (financial lender supported by the Spanish Government) has received extra support to grant loans to companies in the most affected sectors, including tourism and transport. The maximum amount granted per company may be up to EUR 500,000, with a fixed interest rate and a repayment period of one to four years. Loans can be requested until 31 December 2020. More information on practical aspects can be retrieved here [en español]
  • Social Security contributions: As of 29 February 2020, for companies with less than 50 employees the TGSS (Tesorería General De La Seguridad Social) will exempt in its entirety the payment of the Social Security contribution. For companies with more than 50 employees, the exemption from paying the contributions is set at 75%.
  • Santander Spain business aid protocol: Santander Spain has activated the business aid protocol and will offer SMEs and self-employed workers a liquidity facility of pre-approved loans amounting to EUR 20 billion, with interest due within one year. Interested enterprises should contact a local Santander branch. 
  • Labor measures: The Regulation contains measures to allow controlled restructuring of the workforce, by allowing employers to apply force majeure clauses to suspend employment contracts and short-term work allowances. The procedure to allow workforce restructuring will be accelerated and social security-related payments by the employer will be suspended, in particular cases. Support payments for individuals affected by COVID-19, and social security payment reliefs for employers are also established. SMEs must submit an application request to the competent Labor Authority together with a report explaining the reason why the measures are being introduced and how the applicant is affected by the outbreak. Applicants must also inform employees of the suspension request made to the Authority and provide a copy of the request and accompanying documents. More practical information can be accessed here [en español].
  • State Loan Guarantees: the Council of Ministers rolls out a state guarantee for a total amount of up to EUR 100 billion. Companies who request will be able to use this guarantee for loans aimed at paying salaries, other bills, cash flow needs, down payments of financial or tax obligations. This will be managed by the Instituto de Crédito Oficial and will cover up to 80% of total loan amount for SMEs.

The eBay Government Relations team will continue to monitor these COVID-19 response measures in Spain and share them via eBay Main Street. Read more on the procedures to follow to access the measures implemented by the Spanish Government to support businesses here [en español].