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Spain: Tax relief, other relief for companies, response to coronavirus (COVID-19)

Spain: Tax relief for companies, coronavirus

Tax relief measures in response to the coronavirus (COVID-19) pandemic include extensions or suspensions of the deadlines for certain tax procedures to 30 April 2020 or 20 May 2020. However, the extensions do not apply with regard to the requirement to self-assess taxes or to file information returns—those remain subject to the usual deadlines.


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The tax relief and other COVID-19 relief measures are included in:

  • Royal Decree-Law 8/2020 (Spanish) [PDF 742 KB] (17 March 2020) regarding “extraordinary urgent measures to address the economic and social impart of COVID-19”
  • Royal Decree 465/2020 (Spanish) [PDF 226 KB] (17 March 2020) that includes provisions amending Royal Decree 463/2020 of 14 March 2020 (declaring a state of emergency) and clarifies the suspension of statutory periods in tax-related administrative procedures.

The measures provided by Royal Decree Law 8/2020 are effective for one month, notwithstanding any extension that may be later approved by the government. 

Summary of relief measures for companies

Among the relief measures of interest to Spanish companies are the following items:

  • Providing “extraordinary liquidity” to businesses and the self-employed—essentially in the form of bank financing secured by the central government or backed by CESCE (the Spanish export credit agency)
  • Streamlining and promoting the use of temporary collective layoff procedures (ERTEs), as adapted for COVID-19-related issues; broadening unemployment protection and granting exemptions on social security contributions (to address and prevent employment dismissals and to enable companies to adjust their employment costs)
  • Recognizing a right to an “economic benefit” for self-employed workers who stopped their business activities due to the crisis or who are experiencing a drastic drop-off in revenues
  • Broadening the protection granted to “vulnerable mortgage holders” in the form of a moratorium on mortgages and bad debt claims
  • Adapting the corporate regulations governing Spanish companies (specifically, listed companies) regarding their managing bodies, the preparation and approval of annual accounts and audits
  • Providing public procurement-related measures to protect contractors who encounter delays or failures to comply
  • Removing restrictions on the freedom of foreign (non-EU) investment in Spain’s strategic sectors
  • Providing measures to support small and medium size entities in terms of research and development (R&D) and the financing of projects to support “remote working”
  • Guaranteeing the provision of essential services, such as telecommunications, as well as water, electricity and gas for vulnerable groups

Read a March 2020 report [PDF 220 KB] prepared by the KPMG member firm in Spain

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