Spain To Reimburse Self-Employed And Companies Impacted By Brexit Up To €200k

Spain is set to reimburse self-employed workers and companies who were negatively impacted by Brexit it has been announced.

The Spanish Council of Ministers has given the green light to a range of grants for the "ICEX-Brexit" initiative which according to the Ministry of Industry, Trade and Tourism, aims to alleviate the adverse impact of the UK's exit from the European Union on businesses and self-employed individuals.

As per the Royal Decree published in the Official State Gazette (BOE), eligible expenses will receive a subsidy of 75%, with a maximum limit of 200,000 euros per beneficiary. The funding for these subsidies will be derived from the ICEX budget and the Brexit Adaptation Reserve (BAR) funds and will largely be for those businesses that have seen their exports impacted due to Brexit or have lost investments as a result.

The Ministry said that the aid will help to “establish transitional measures to help exporting companies absorb the shock that Brexit is having in terms of increased costs, new procedures and administrative obligations.”

Moreover, the Ministry has also pledged to aid Spanish companies in strengthening their presence in the British market and facilitating job creation in sectors that export to the United Kingdom.

As explained by the Ministry of Industry, Trade and Tourism, "The planned aid will have a direct positive impact on the productivity and competitiveness of the economy and the improvement of employment, since it will allow Spanish companies that export to and have a presence in the UK market to progressively absorb the effects of the country’s exit from the EU."

Assistance is available for both the self-employed and companies impacted by Brexit

Royal Decree 114/2023 dated February 21 states that companies legally established in Spain or self-employed individuals registered under the Special Regime for Self-Employed Workers, exporters, or those with investments in the United Kingdom are eligible for aid if they have been negatively impacted by Brexit. This includes a decrease in exports or incurring expenses related to the UK's departure from the European Union.

In order to demonstrate the impact of Brexit on their export operations to the United Kingdom, companies and freelancers must provide a statement detailing the negative effects they have experienced.

Requirements to claim

To be eligible for the subsidy, companies, and self-employed individuals must satisfy the following criteria:

• No outstanding debts for the repayment of aid or loans with the government or ICEX, and specifically, no outstanding repayment obligations for any previous loans or advances granted against the credits allocated for managing these funds.
• Compliance with tax and social security obligations.
• Authorization for the Customs and Special Taxes Department of Spain's tax agency to send information on foreign trade and investments to ICEX.
• Not be affected by any circumstances outlined in sections 2 and 3 of Article 13 of Law 38/2003, available here.
• For subsidies exceeding €30,000, non-compliance with payment deadlines specified in Article 13.3 bis of Law 38/2003 will disqualify companies from receiving benefits.
• Allowable expenses and charges will be evaluated separately.

Certain expenses and costs cannot be reclaimed. These include relocation costs, travel, accommodation, and living expenses.

According to the BOE, for the purposes of these subsidies, "it will be considered an expense that has been effectively paid prior to the end of the justification period determined by the regulations governing the subsidy". That is, on December 31, 2023.

Eligible expenses may include:

• New costs of exporting to the United Kingdom as a result of its departure from the European Union: as Costs derived from advice regarding new requirements; Cost of certifications required for the product or service; Registration of trademarks and appellations of origin; Costs of licenses, applications, and visas; among others.
• Consolidation expenses in the UK market through an increased physical and brand presence to cushion the negative impact of Brexit.
• Previous, incorporation and first establishment expenses: such as feasibility studies; expenses of setting up the subsidiary, branch, or office; or external advice.
• Promotional expenses linked to the development of the internationalization plan in the British market: market research; dissemination and promotional material; contracting specialized services; advertising; positioning and marketing actions; commercial sponsorships; public relations; participation in fairs; among others.
• Expenses of legal defense of the trademark and homologation: registration of patents and trademarks; brand defense; Approvals and certifications.

Source

https://www.thelocal.es/20230227/how-spain-will-give-up-to-e200k-to-self-employed-and-companies-affected-by-brexit/
https://www.autonomosyemprendedor.es/articulo/ayudas-y-subvenciones/icex-dara-200000-euros-autonomos-empresas-que-hayan-visto-afectados-brexit/20230222154601029386.html