Spain Unveils Aid Package For Self-Employed, Renters And Families Hit By Pandemic Spain News

The Spanish government approved a set of 50 new measures on Tuesday which will provide aid to those most vulnerable during the Coronavirus pandemic.

The new 700 Million Euro aid package will provide extra financial support and security to a range of citizens including the self-employed, families, small businesses and temporary workers.

Below we outline how the new measures will affect the different groups.

Self-Employed and Temporary Workers

One of the main government measures is to provide protection to self-employed workers (Autonomo), many of whom will have been hit hard by the crisis.

Under the new decree, social security contributions can be postponed for up to six months. The measures will also apply to SMEs; businesses with less than 250 employees. In addition, any payment of debts may also be delayed for a six month period.

Any payments made for days not worked in March may also be claimed back.

Deferment of social security payments for the self-employed and small businesses must be applied for by the 10th of April with interest added at a reduced rate of 0.5%.

Self-employed workers may also apply to suspend their mortgage repayments if their income has been heavily impacted by the Coronavirus pandemic. These measures aimed to extend the same level of support as recently introduced for salaried workers.

Temporary workers whose contracts have been terminated due to the State of Alarm will receive a €440 supplementary payment.

Renters and Evictions

Those who rent their homes will also be supported under the new measures.

Any evictions will be suspended during the State of Alarm and for six months from when it is ended. Rental contracts that are due to expire will also be extended for a further six months.

Tenants in a vulnerable situation and unable to pay their rent can take advantage of an automatic moratorium on rent payments for up to six months.

Under the new measures, anyone who needs help paying their rent will also have a 'microcredit' scheme available making funds available at 0% interest for those who need help to pay their rent. Loans can then be paid back in six years time extendable up to 10 years.

This would be available for those who rent from private landlords who own no more than two properties.

Larger landlords would be required to also “do their bit” and would need to reduce their rents by 50% or restructure them to help struggling tenants.

For those who have long-term problems in paying their rent, a new program of direct rental aids on their habitual residence will also be established and of which will be added to the measures above.

The most vulnerable in society will also be protected including the homeless and victims of gender violence. People under this category will receive a grant of up to 600 Euros per month which can be extended up to 900 Euros per month with a limit of 100% of the property’s rent. Another 200 Euros will also be made available to cover maintenance, community and basic supply expenses.

Support for basic utility supplies

Under the new measures, basic utilities including water, electricity and gas will also be guaranteed during the State of Alarm, and that no one would see any of their services cut off.