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Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 28 October, 2020

General Information

Eight pieces of legislation—Royal Decree-Law 6/2020, Royal Decree-Law 7/2020, Royal Decree 463/2020, Royal Decree-Law 8/2020, Royal Decree 465/2020, Royal Decree-Law 9/2020, Royal Decree-Law 10/2020 and Royal Decree-Law 11/2020 —provide initial measures to address the coronavirus (COVID) crisis. The legislation includes measures that address health and the economy at large, with a particular emphasis on the tourism industry, small and medium size enterprises (SMEs), and the self- employed, as well as persons affected by the containment measures. Given the gravity of the situation, it is expected that these are but the first of many laws, decrees and ministerial orders (presumably some would be announced at the next cabinet meeting). These measures are at the national level, and they could be supplemented by measures at regional and local levels

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Employment-related measures

(e.g. state compensation schemes, training…)

More flexible mechanisms for temporary adjustments of activity

  • Exceptional measures in relation to the procedures for the suspension of contracts and reduction of working hours by reason of force majeure (Art. 24)
    • The procedure shall be initiated by the company, accompanied by a report on the loss of activity as a result of COVID-19.
    • Force majeure must be deemed to exist by the labor authority, irrespective of the number of workers affected.
    • On receipt of the report from the labor and social security inspection service, the labor authority must, where appropriate, hand down a decision within five days of the request.
    • The labor and social security inspection’s report will be drawn up within a non-extendable period of five days.
  • Exceptional measures in relation to the procedures for the suspension and reduction of working hours for economic, technical, organizational and production-related reasons linked to COVID-19. (Art. 24)
    • Where there are no workers’ statutory representatives, the representative committee will be made up of the labor unions with the highest membership in the sector. If it cannot be assembled with those representatives, the committee will be made up of three workers.
    • Consultation period between the company and the workers: up to 7 days
    • The labor and social security inspection report: up to 7 days
  • Exceptional measures in relation to the procedures for the suspension of contracts and reduction of working hours by reason of force majeure (Art. 24)
    • In procedures involving the suspension of contracts and reduction of working hours by reason of temporary force majeure related to COVID-19,
    • the Social Security authority will exempt the company from the payment of the employer’s contribution and the contributions for joint collection items while the authorised suspension of contracts and reduction of working hours persists
    • With 50 or more workers registered with the social security, the exemption from the obligation to pay contributions will cover 75% of the employer’s contribution.
    • This exemption shall have no effects for the worker, as the aforementioned period shall be deemed to be a contribution period to all intents and purposes
  • Extraordinary measures regarding unemployment benefits for application of the procedures referred to in Articles 22 and 23. (Art. 25)
    • The right to the contributory unemployment benefit shall be recognized even if workers have not met the minimum contribution period required.
    • The time during which the contributory unemployment benefit is received for the aforementioned extraordinary reasons shall not be included for the purposes of determining completion of the established maximum periods for receiving benefits.
  • Temporary limitation of the effects of late filing of applications for unemployment benefits (Art. 26)
    • These effects shall not apply during the period of enforcement of the extraordinary measures adopted regarding public health.
  • Extraordinary measures related to the extension of unemployment benefits and the period for filing annual income tax returns (Art. 27).
    • The managing entity shall be authorized to extend ex officio the right to receive unemployment benefits in the case of workers who are eligible for a six-month extension (irrespective of whether they have applied for it).
    • In the case of unemployment benefit recipients over 52 years of age, payment of benefits and social security contributions shall not be interrupted even in the event of late filing of the requisite annual income tax return
  • Duration of the measures provided for in Chapter II (Art. 28).
    • The measures provided for in Articles 22, 23, 24 and 25 of this Royal Decree-law shall remain in force for as long as the extraordinary situation caused by COVID-19 shall persist.

Other measures– Royal Decree-7 2020

  • Measures to support the continuation of the employment of workers with permanent seasonal contracts in the tourism industry and tourism-related retail and hotel and restaurant sectors (art. 13).
    • Companies (excluding those in the public sector) in the tourism industry, as well as those in the tourism-related retail and hotel and restaurant sectors, which generate productive activity between February and June and which hire or retain workers under permanent seasonal contracts during such months will be able to apply a 50% reduction of employers’ social security contributions for non-occupational contingencies, and for the joint refunding of unemployment benefits, the wage guarantee fund (FOGASA) and vocational training in respect of such workers.

Transitional financial support measures

  • Request for extraordinary deferral of repayment schedule for loans granted by the General Secretariat for Industry and Small and Medium Enterprises (art. 15)
    • Companies (excluding those in the public sector) in the tourism industry, as well as those in the tourism-related retail and hotel and restaurant sectors, which generate productive activity between February and June and which hire or retain workers under permanent seasonal contracts during such months will be able to apply a 50% reduction of employers’ social security contributions for non-occupational contingencies, and for the joint refunding of unemployment benefits, the wage guarantee fund (FOGASA) and vocational training in respect of such workers

Paid leave – Royal Decree 10 2020 (Application between March 30 and April 9, 2020)

  • Workers will retain the right to the remuneration that would have corresponded to them if they were rendering services.
  • Recovery of working hours: from the day following the end of the alarm state until December 31, 2020.
  • This recovery must be negotiated in a consultation period open for this purpose between the company and the legal representation of the working people, which will have a maximum duration of seven days.
  • In any case, the recovery of these hours may not suppose the breach of the minimum daily and weekly rest periods provided for in the law and in the collective agreement, the establishment of a notice period lower than the one collected.

Minimum indispensable activity – Royal Decree 10 2020 (Application between March 30 and April 9, 2020)

  • Companies that must apply the recoverable paid leave may establish the minimum number of staff or strictly essential work shifts in order to maintain the essential activity. This activity and this minimum number of staff or shifts will have as reference the one held on an ordinary weekend or on holidays.
  • The scope of furloughing procedures on grounds of force majeure has been broadened to cover significant drop-offs in activity in sectors deemed essential that have also seen falling revenues.
  • The protection of workers on permanent seasonal contracts has been reinforced, extending the coverage provided for in Royal Decree-Law 8/2020 to workers unable to resume their activities on the dates envisaged as a result of COVID-19 and who do not meet the requirements to be deemed legally unemployed or who are ineligible for unemployment benefit, having failed to reach the necessary contribution threshold.
  • The priority given to working from home has been extended for a further two months, as has the right to adapted and reduced working hours and times.

Labour and social security measures

  • Royal Decree-Law 8/2020 adapted the furloughing mechanism for the force majeure circumstances defined in that piece of legislation. The concept of force majeure has now been broadened to take in the part of the activities that were not obliged to continue under the legislation ushered in with the state of emergency in economic sectors that are obliged to do so.
  • Also, as regards the extraordinary adjustment measures under furloughing arrangements deriving from Royal Decree-Law 8/2020, the circumstances in which permanent seasonal workers are entitled to receive unemployment benefits have been amended, to provide for up to six different scenarios extending such coverage to workers who have been unable to resume their activity.
  • The preference for teleworking arrangements and the right to adapt or reduce working hours and times - both measures provided for in Royal Decree-Law 8/2020 and now referred to as the MECUIDA Plan - has been extended by two months. These arrangements will now remain in place for up to three months after the state ofemergency is lifted (in principle until August), with the possibility of further extension by the Government.
  • Workers whose employment contracts are terminated by the employer during the trial period will be deemed legally unemployed where such termination took place as of 9 March 2020. This will also be the case for workers who terminated their previous employment relationship voluntarily as of 1 March 2020, on the basis of a firm offer of an employment contract received from another company that subsequently withdrew from the contract as a result of the crisis triggered by COVID-19.
  • The state of emergency, and any extensions thereto will not be factored in for the purposes of calculating the duration of employment and social security inspection proceedings, the statutory periods for compliance with demands or the statutes-of-limitations on actions to claim liability as regards compliance with labour and social security legislation.
  • Royal Decree-Law 11/2020, in relation to the procedure whereby companies and self-employed workers may defer social security contributions from April through June has been amended.
  • As of one month after 23 April 2020, self-employed workers whose temporary incapacity benefits are covered by the National Employment Institute as they are not registered with a mutual insurance society must opt for a mutual society cooperating with the social security authorities, which will assume their protection and payment responsibilities in respect of the discontinuation of their activity and temporary incapacity. Elsewhere, the Royal Decree-Law also regulates the extraordinary benefit for discontinuation of activity under Royal-Decree Law 8/2020.
  • As regards the amendment of the Social Security Infringements and Penalties Law, by the modification of Royal Decree-Law9/2020, the scope of the serious infringement reserved for breaches involving the exceptional benefits envisaged in that RDL has been extended to refer not only to the falsification of documentation with a view to fraudulently obtaining benefits, but also to the reporting of false or inaccurate data giving rise to undue benefits. Automatic refunds of benefits unduly received by the company are provided for and the joint and several liability of companies for unemployment benefits unduly received by workers is further defined.

Measures implementing exceptional  drawdowns on pension schemes (Royal Decree-Law 15/2020)

  • Royal Decree-Law 15/2020 builds on the provisions of Royal Decree-Law 11/2020 as regards the exceptional liquidity scenario envisaged for the surrender of vested rights under pension schemes, as well as other vehicles formalising pensions commitments, such as insured pension plans (PPAs), corporate employee welfare plans (PPSEs) and some mutual funds, in certain scenarios deriving from the health crisis triggered by COVID-19.
  • This option is now open to workers finding themselves legally unemployed as a result of a furloughing procedure implemented in the wake of the health crisis triggered by COVID-19, employers owning establishments no longer able to open to the public as a result of the state of emergency, and self-employed workers whose activity has been discontinued as a result of the current health crisis.
  • Royal Decree-Law 15/2020 sets out the documentation to be filed in order to request this benefit. Where applicants are unable to submit any of the documents required, they may replace them temporarily with a solemn declaration.
  • Limits have also been set on the sums that may be surrendered, whereby the amount of the vested rights available for surrender will be the smaller of the following amounts, with respect to all pension schemes held by the applicant:
  • Amount 1:
    • For workers rendered unemployed due to a furloughing procedure implemented in the wake of the health crisis triggered by COVID-10: the amount of net salaries not received during the period in which the furlough is in place.
    • For employers owning establishments affected by the state of emergency: the estimated net revenues not received due to the prohibition on their opening to the public.
    • For self-employed workers who have discontinued their activity as a result of the state of emergency: the net income not received due to such discontinuation.
    • The amount obtained by multiplying the Annual Public Multi-purpose Income Indicator for 12 payments in force for 2020 by three, and prorating the result proportionally based on the duration of the furlough, the period for which the relevant establishment is unable to open to the public or the period for which the activity is discontinued, as applicable, respectively, in each of the above three cases.

Start-ups

  • ERTE, has been expanded to cover businesses affected by the virus. Up to 70 % of salaries will be paid, with a maximum of €1,412 per month.
  • Some social security payments will be suspended and there will be €600m to help vulnerable people and those depending on social services.
  • Aid from the Madrid region (max. €3 200) for self-employed persons without employees

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

Guarantee of liquidity to sustain economic activity

  • Approval of a credit line whereby the State shall cover the financing extended by financial institutions to companies and self-employed persons. (Art. 29)
    • Approval of a credit line whereby the State shall cover the financing extended by financial institutions to companies and self-employed persons. The Ministry of Foreign Affairs and Digital Transformation will grant up to EUR 100,000 million in guarantees for funding provided by credit institutions.
    • The conditions that apply and the requirements that must be met, including the maximum period for applying for the guarantee, shall be established by the Council of Ministers without the need to enact any subsequent implementing regulations.
    • The guarantees granted under this regulation and the terms and conditions agreed by the Council of Ministers shall comply with European Union regulations on state aid.
  • Raising of the net indebtedness limit of the Spanish official credit institute (ICO) to increase the ICO credit facilities for the financing of companies and the self-employed. (Art. 30)
    • The net indebtedness limit of the Spanish official credit institute (ICO) provided in the General State Budget Law will be raised by EUR 10,000 million to provide companies, particularly SMEs and self-employed workers, with additional liquidity. This will take the form of short-, medium- and long-term ICO financing facilities provided through financial institutions, and of direct funding for larger companies, in accordance with ICO’s policy regarding financing.
    • The decision-making bodies of the ICO will adopt the necessary measures to make more funds available and provide greater flexibility of funding, as well as to improve company access to credit while preserving the necessary financial equilibrium stipulated in its articles of association.
  • Extraordinary insurance cover facility. (Art. 31)
    • Beneficiaries: Spanish small and medium enterprises (SMEs) and other larger unlisted companies in the following circumstances:
      • Companies engaged in international trade or that are in the process of internationalization, and that meet at least one of the following requirements:
        • companies whose international operations, as reflected in the latest available financial information, account for at least one-third (33%) of their turnover, or
        • companies with regular export activities (those that have carried out regular exports over the past four years in accordance with the criteria established by the Secretariat of State for Trade).
      • Companies that are experiencing liquidity problems or lack of access to funding as a result of the impact of the crisis caused by COVID-19 on their economic activity.
    • Excluded: companies in technical insolvency or in pre-insolvency proceedings, and companies in default of payments to public sector companies or that have outstanding debts with the administration.
    • Formalization: two tranches of EUR 1,000 million each, the second of which will go into effect on verification that the first tranche has been issued in a satisfactory manner.
  • Financial measures aimed at owners of agricultural holdings that arranged loans due to the drought in 2017 (Art. 35)
    • Owners of agricultural holdings who, affected by the drought in 2017, contracted credit facilities, will be allowed to voluntarily enter into agreements with financial institutions to extend the repayment periods of their loans by up to one year, which shall be considered a grace period.
    • The Ministry of Agriculture, Fisheries and Food will finance the additional cost of the guarantees granted by the Sociedad Anónima Estatal de Caución Agraria (SAECA) as a result of extending the aforementioned repayment periods.

Additional measures to enable an adequate response

  • Period for petitioning for insolvency proceedings. (Art. 43)
    • Insolvent debtors will be under no obligation to apply to the courts for an insolvency order while the state of emergency is in force.
    • Until two months from the end of the state of emergency, judges will not grant leave to proceed with any petitions for necessary insolvency filed while the state of emergency was in force or any filed during these two months. 
    • Any voluntary petition for an insolvency order that has been filed will be admitted for consideration, on a priority basis, even if it has a later date.
    • Debtors will likewise not have to file for insolvency while the state of emergency is in force if they have given notice to the competent court for insolvency proceedings that negotiations have been started with creditors to reach a refinancing agreement or an out-of-court settlement or to gain acceptance of an advanced proposal of a creditors’ agreement, even though the time period referred to in article 5.5bis of Insolvency Law 22/2003, of 9 July 2003, has expired.
  • ACELERA Plan. (Additional provision eight)
    •  The government will arrange for the Acelera Programme for SMEs to commence immediately, through the public entity RED.ES, with the aim of implementing a set of initiatives in collaboration.

Other measures– Royal Decree-7 2020

Measures to support the tourism industry:

  • Increase in the Thomas Cook financing line to assist companies incorporated in Spain within certain economic sectors (art. 12).
    • The budget item of the Ministry of Industry, Commerce and Tourism guaranteeing 50% of the debt drawn down from the ICO credit line will be raised from the initial EUR 100 million to EUR 200 million so as to cover the increased financing line up to EUR 400 million, adjusting the corresponding budgeted amounts in each year to these new limits.

Measures to boost corporate finances

Institute for Energy Diversification and Saving

  • RD-Law 15/2020 authorises the Institute for Energy Diversification and Saving, M.P. (IDAE), a public business entity, to grant deferrals for the repayment of loans granted in the context of its refundable subsidy or aid programmes.

Insurance Compensation Consortium

  • Likewise, the Insurance Compensation Consortium is authorised to act as reinsurer of credit insurance risks.

Line of state guarantees

  • As regards the €100,000 million line of state-backed guarantees approved by Royal Decree-Law 8/2020 to cover the financing granted by credit institutions to reinforce the measures introduced to shore up the liquidity of companies and the self-employed, RD-Law 15/2020 adopts three supplementary measures:
    • First of all, the counter-guarantee granted by Compañía Española de Reafianzamiento Sociedad Anónima(CERSA) has been consolidated to increase the guarantee capacity of Reciprocal Guarantee Companie
    • Provision is also made for the above guarantees to cover promissory notes included on the Spanish Brokers’ Association (AIAF) Fixed Income Market and the Alternative Fixed income Market (MARF)
    • Lastly, assurance is provided as regards release of the line of guarantees of up to Euros 100,000 million until 31 December 2020

Government launch of first package of 100 billion euros measure

The Royal Decree-Law also specifies, in relation to this line of guarantees, that the Ministry of Transport, Mobility and Urban Agenda may grant guarantees for up to Euros 1,200 million to implement the measures provided for in Royal Decree-Law 11/2020 on the moratorium on rental payments for families left in a vulnerable situation by COVID-19, thereby securing the fixed-purpose loans granted by financial institutions.

SEPI – Solvency support fund for strategic companies

  • Royal Decree-Law 25/2020 of 3 July 2020, on urgent measures to support economic recovery and employment, created the Solvency support fund for strategic companies (Article 2) in an amount of €10,000m, which is managed through SEPI.
  • Purpose: to provide temporary public support to non-financial undertakings that are experiencing difficulties due to the COVID-19 pandemic and which are considered strategic for the nationwide or regional productive fabric, in view of their marked social and economic impact, and their relevance in terms of safety, people’s health, infrastructure, communications and their contribution to the smooth operation of the markets.
  • Time frame: transactions may be granted until 30 June 2021.
  • Appendix 0: application form for a consultation period in order to resolve any doubts that could arise regarding the conditions and the requirements the beneficiaries must meet before formally requesting aid.
  • Content of the application: the requirements and conditions detailed in the applicable legislation must be met and the application must essentially comprise the following documentation:
    • Appendix I: Application form for temporary public support.
    • Solemn declaration attesting that the applicant is not subject to any of the cases that would prohibit them from obtaining the support, as set forth in Appendix II.
    • Viability Plan with the minimum content set forth in Appendix III.
    • Solemn declaration attesting to the concurrence of certain conditions that constitute eligibility as a beneficiary of the Fund, as set forth in Appendix IV.
  • Types of instruments: those that are most suitable in terms of the beneficiary’s recapitalisation requirements, while also being those which least distort the competition. The transaction could consist of the following:
    • Participating loans, convertible debt, subscription of shares or other equity instruments.
    • Other credit facilities: loans or subscription of privileged, ordinary or subordinated debt, whether secured or unsecured.
  • Reimbursement of the aid: the Viability Plan must include the strategy and schedule for reimbursement.
  • Until the aid has been reimbursed in full, the beneficiary shall be subject to a number of restrictions and limitations on corporate transactions, and to the right of veto with respect to strategic decisions.
  • The data, documents and information held by SEPI shall be confidential and may not be disclosed or used for purposes other than those for which they were obtained.

Eligibility criteria for beneficiary companies

  • The company must be a non-financial undertaking and its registered office and primary workplaces must be located in Spain.
  • It must not be an undertaking in difficulty at 31 December 2019, in the terms set forth in Article 2, point 18 of Commission Regulation (EU) No 651/2014 of 17 June 2014, declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.
    Commission Regulation (EU) No 651/2014 of 17 June 2014. Article 2 (18). Definition of an “undertaking in difficulty”:
    (d) Where the undertaking has received rescue aid and has not yet reimbursed the loan or terminated the guarantee, or has received restructuring aid and is still subject to a restructuring plan;
    (e) In the case of an undertaking that is not an SME, where, for the past two years:
    1) the undertaking's book debt to equity ratio has been greater than 7.5 and
    2) the undertaking's EBITDA interest coverage ratio has been below 1.0.
    Ratios included by Company management in the declaration submitted pursuant to Clause 11 m) of the contract for the COVID-19 ICO guarantee facility
  • The company must not have filed for voluntary insolvency, and must have been declared insolvent in any proceedings, have been declared bankrupt, unless an agreement has come into effect, be subject to judicial intervention or have been barred pursuant to Law 22/2003 of 9 July 2003 (the Insolvency Act), without the barring period stipulated in the ruling initiating the insolvency proceedings having elapsed. Nonetheless, intervention is permitted in duly supported cases with a charge to the Fund, particularly where bankruptcy was not declared prior to 31 December 2019.
  • Without the temporary public support provided through the Fund, the beneficiary would discontinue its activity or would have serious difficulties in keeping its operations ongoing. Such difficulties could manifest in the form of a decline, in particular, in the beneficiary’s book debt to equity ratio or similar indicators.
  • Evidence that the mandatory discontinuation of activity would have a considerable negative impact on economic activity or employment, at nationwide or regional level. The direct and indirect impact on economic activity and employment shall be measured in relation to the company’s position at the 2019 year end.
  • Demonstration of the company’s viability in the medium and long term. A Viability Plan must be submitted with the application, indicating how it will overcome the difficulties and projecting how the public aid requested from the Fund will be used, the environmental risks, how it expects to address these, and its energy strategy.
  • Forecast reimbursement plan for the state aid, including a repayment schedule for the State's nominal investment and interest thereon, and the measures to be adopted to ensure compliance with the state aid reimbursement plan.
  • Reporting of the various public support measures from which the company has benefitted in the last 10 years, indicating the amount, the purpose and the body that awarded the state subsidy or aid in any form.
  • The company must not have been ordered, in a final judgment, to forfeit the right to receive subsidies and state aid, or have been found guilty of perversion of justice, bribery, misappropriation of public funds, influence peddling, fraud and extortion, or urban planning offences.
  • The company must not, through any lawsuit in which it has been found guilty, have given rise to the definitive rescission of any contract entered into with the government.
  • It must have no outstanding payment obligations in respect of the reimbursement of subsidies or state aid.
  • It must, at 31 December 2019, have no outstanding payments in respect of the tax or social security obligations imposed under the legislation in force.
  • In addition, the decision to avail of the Fund shall be based, among other factors, on the systemic or strategic importance of the sector of activity or the company, its relationship with public health and safety or its status as a driver of the economy as a whole, its innovative nature, the indispensability of the services it provides or its role in achieving the medium-term targets of the ecological transition, digitalisation, growth in productivity and human capital.

ICO guarantee facility

In the Official State Gazette (BOE) of 17 March 2020, the government announced the launch of a guarantee facility for an amount of €100,000m to mitigate the effects of COVID-19. In July 2020, as the first guarantee facilities neared depletion, a new guarantee facility was launched, the purpose of which was broader in scope than the previous facility, this time including CAPEX, financial and operating leases and R&D&i expenditure (among other items).

Guarantee facilities to mitigate the effects of COVID-19 (€100,000m)
To guarantee financing for companies and self-employed workers so as to mitigate the financial effects of COVID-19, guarantee liquidity and cover the working capital needs of self-employed workers, SMEs and large companies, in order to keep up production and protect employment.

Expired

Deadline: 30 September 2020

At 18 September the financial institutions had consumed 99% of the guarantee facility.

Investment guarantee facility

(€40,000m)

To promote and support the granting of new financing to self-employed workers and companies primarily so that they may undertake new investment in Spain, with the aim of adapting, extending or renewing their production and service capacity, or to resume their activities or reopen their businesses (*).

Deadline: 1 December 2020

The government and the financial institutions are faced with the prospect that, having been granted such facilities, companies may, as a result of the new outbreaks, be unable to repay the loans received, and are therefore studying the mechanisms available for extending the time frame of ICO facilities and offering deferrals.

(*) Note: although the main purpose is to promote investment, funds may also be used for the same purposes as under the first guarantee facility (salaries, supplier invoices and current financial and tax obligations). See Investment guarantee facility for further information.

COVID-19 guarantee facility

Guarantee facility, the purpose of which is to provide guarantees for financing for companies and self-employed workers to mitigate the financial effects of COVID-19, guarantee liquidity and cover the working capital needs of self-employed workers, SMEs and large companies, so as to keep up production and protect employment

  • Effective retrospectively on loans arranged since 18 March 2020.
  • Guarantee:
    • Up to 80% of bank loans requested by SMEs.
    • Up to 70% of loans to large companies.
    • Up to 60% of loans falling due in the coming months and being renewed.
  • Banks wishing to avail of this measure may not provide waivers for loans granted prior to the COVID-19 crisis.
  • The maximum term of loan guarantees is five years, so loan terms may not exceed this period.
  • Deadline for application: 30 September 2020.
  • Interest rate: the banks shall establish the interest rates on the publicly guaranteed loans
  • Guarantee costs: “shall be borne by the financial institutions” and be between 20 and 120 basis points.
  • Companies and self-employed workers that were not in default at 31 December 2019 and that had not filed for insolvency at 17 March 2020 may apply for loans secured by these guarantees. In addition, they must comply with the terms of European legislation, whereby the company must not have received aid for restructuring or be an undertaking in difficulties.
  • Maximum amount (*):  25% of sales in 2019  / 24 months of salaries.

Management: this facility will be managed by Instituto de Crédito Oficial (ICO), in collaboration with the financial institutions.

Application: through the financial institutions with which ICO has entered into the corresponding collaboration agreements. 

(*) Note: in certain situations the amounts could be higher; see European Union Framework for State aid.

Distribution of tranches and cost for the institutions (*)

Tranche (€M) Self-employed and SMEs Large corporations “MARF” promissory notes CERSA Self-employed and SMEs - tourist sector Transportation expenses Authorised Deadline
First 10,000 10,000 - - - - 24-Mar-20 30-Sep-20
Second 20,000 - - - - - 10-Apr-20 30-Sep-20
Third 10,000 10,000 4,000 500 - - 05-May-20 30-Sep-20
Fourth 20,000 - - - - - 19-May-20 30-Sep-20
Fifth 7,500 5,000 -   2,500 500 16-Jun-20 30-Sep-20
Total 67,500 25,000 4,000 500 2,500 500    

99% granted as of 18 September 2020 (€98,878m)

Cost (basis points) <€1.5m >€1.5m
Term  All types  SMEs and self-employed workers Large corporations Large corporations - renewal
<1 year 20 20 30 25
1-3 years 20 30 60 50
3-5 years 20 80 120 100

(*) Note: the aforementioned cost is automatically transferred to the companies to which financing is granted through the all-in interest rate on financing.

For further information: Línea de Avales Real Decreto-ley 8/2020, de 17 de marzo

Investment guarantee facility

  • Guarantee facility, the purpose of which is to promote and support the granting of new financing to self-employed workers and companies primarily so that they may undertake new investment in Spain, with the aim of adapting, extending or renewing their production and service capacity, or to resume their activities or reopen their businesses.
  • Royal Decree-Law 25/2020 of 3 July 2020, on urgent measures to support economic recovery and employment, created the Investment Guarantee Facility (Article 1) in an amount of €40,000m.
  • Time frame: guarantees can be granted until 1 December 2020.
  • Application: companies may apply for these guarantees through their financial institutions by arranging new financing transactions.
  • Purpose of the financing obtained:
    • New investment within Spanish territory, including current expenditure and capital expenditure linked to investments for which the company can provide proof that have been carried out since 27 July 2020.
    • Investment and/or current and capital expenditure for the extension, adaptation or renewal of production or service capacity.
    • Investment and/or current and capital expenditure for the purpose of resuming or conducting the activity.
    • Financing needs derived from, among other items, salary payments, supplier invoices and current financial or tax obligations.
    • Current and capital expenditure associated with or earmarked for, among other items, purchases, rentals, and finance or operating leases of equipment, machinery, facilities, supplies of materials and goods and services relating to investment and/or the activity of the company including, among others, job creation and preservation and R&D&i expenses.
  • Operations eligible for guarantee: new loans, finance and operating leases, reverse factoring facilities and other types of financing granted to self-employed workers and companies from all sectors of activity registered in Spain that have been affected by COVID-19 (*) are eligible, if:
    • The new loans and transactions were arranged after 29 July 2020.
    • The borrowers are not included in the Banco de España’s Risk Information Centre files as being in arrears at 31 December 2019.
    • The borrowers had not filed for insolvency at 17 February 2020.
    • The EU Temporary Framework for aid is applicable, and the undertaking is not in difficulties at 31 December 2019, in accordance with the criteria established in Article 2, point 18, of Commission Regulation (EU) No 651/2014 of 17 June 2014. See appendix.
  • Financial institutions that provide this facility: eligible institutions include credit institutions, specialised lending institutions, electronic money entities and payment entities that had already signed the framework contract for the guarantee facility with ICO pursuant to Royal Decree 8/2020 of 17 March 2020, and that were effectively in operation at 15 May 2020, as established by the Council of Ministers Agreement of 10 April 2020.
  • Conditions for eligibility: financial institutions will conduct a preliminary analysis of eligibility and shall decide whether to grant financing to the customer in accordance with their internal procedures and loan and risk policies.
  • Transactions of up to Euros 50 million approved by the financial institution will be guaranteed, subject to the lender’s risk policies, notwithstanding subsequent verification of the eligibility conditions.
  • Transactions for an amount of over Euros 50 million, once ICO has analysed compliance with the eligibility conditions, in addition to the lender’s assessment.
  • Maximum percentage covered by the guarantee:
  • Self-employed workers and SMEs, up to 80% of the transaction principal.
  • For other companies not considered SMEs, the guarantee will cover up to 70% of the transaction principal.
  • Term of the guarantee: the guarantee will be issued for the term of the transaction, up to a maximum of eight years. For transactions to which the de minimis regime applies, the maximum term shall be five years. For transactions of less than Euros 1.5 million with a term of between five and eight years, the applicable regime is the EU Temporary Framework for State aid. In all cases, the customer may choose the EU Temporary Framework for State aid, without prejudice to the financial institution’s decision to grant financing in accordance with its internal procedures and risk policies.
  • Guarantee costs: the cost of the new loans availing of these guarantees will be kept in line with the cost applied prior to the onset of the COVID-19 crisis, as the guarantees are publicly secured and given the cost of the coverage, which should generally be lower than the cost of loans and other transactions with the same type of customer that are not guaranteed. The financial institutions may not charge finance costs or expenses for amounts not drawn down by the customer. Financial institutions may not take advantage of the granting of loans covered by this public guarantee to sell other products or make the granting of such loans contingent on the customer agreeing to buy other products marketed by the institution
  • Maximum loan amount per customer eligible for guarantees under this facility:
    • New loans arranged under this programme may be aggregated with other transactions already guaranteed by the State under Royal Decree 8/2020. This should be taken into consideration by financial institutions and customers with regard to eligibility, limits, verification and applicable regime.
    • Up to Euros 1.5 million, for a term not exceeding five years, in one or several loan transactions for self-employed workers and companies, the specific provisions of Commission Regulation (EU) No 1407/2013 of 18 December 2013 shall apply.
    • In this case, according to the applicable de minimis regime, the maximum principal of the loan or other financing transaction shall be Euros 1,500,000 for most sectors, or the limit applicable to other specific sectors (fisheries, agriculture and road freight (*)) under specific EU de minimis legislation.
    • When the total loan amount to be guaranteed, taking into account the guarantee facility approved by Royal Decree 8/2020 of 17 March 2020, exceeds Euros 1.5 million, or the term exceeds five years (it may not exceed eight years), the transaction shall be subject to the Temporary Framework for State aid in its entirety. The amount of financing guaranteed per customer in one or more transactions – including financing through both this facility and the guarantee facility under Royal Decree 8/2020 with the financial institution and the other financial institutions – may not exceed the greater of:
      • Twice the customer’s annual salary costs, taking as reference its costs in 2019.
      • 25% of the customer’s sales in 2019, per its 2019 annual accounts or income tax return.
      • Where properly supported and on the basis of a customer self-certification of its liquidity needs, the amount of financing may exceed the above criteria to cover the liquidity needs of self-employed workers and SMEs for the next 18 months, and those of companies other than SMEs for the next 12 months, from the time the financing is granted.
  • Cuts in existing financing facilities by financial institutions: Financial institutions undertake to maintain the limits of the working capital facilities granted to all customers, especially those whose loans have been guaranteed, until at least 31 December 2020.

ICO investment guarantee facility
Distribution of tranches and cost for the institutions (*)

Tranche (€M) Self-employed and SMEs Large corporations Authorised Deadline

First

5,000

3,000

28-Jul-20

01-Dec-20

-

-

-

-

Although authorised on 28 July 2020, it was not made available to financial institutions until mid-September.

Cost (basis points)    
Term  SMEs up to 80% coverage Large corporations up to 70% coverage
<1 year 20 30
1-3 years 30 60
3-5 years 80 120
5-6 years 80 125
6-7 years 169 260
7-8 years 188 285

(*) Note: the aforementioned cost is automatically transferred to the companies to which financing is granted through the all-in interest rate on financing.

For further information: Línea de Avales Inversión Real Decreto-Ley 25/2020, de 3 de julio

Insurance cover facility of up to €2,000m (16 October)

  • As an extraordinary measure, authorisation is given to create an insurance cover facility of up to €2,000 million for six months from the entry into force of this Royal Decree-Law which will be funded with a charge to the Internationalisation Risk Reserve Fund.
  • Management: this insurance cover will be provided by Compañía Española de Seguros de Crédito a la Exportación S.A. Cía. de Seguros y Reaseguros (CESCE). It is administered by CESCE in its capacity as exclusive manager on behalf of the State.
  • Beneficiaries: Spanish small and medium-sized enterprises (SMEs) and other larger unlisted companies in the following circumstances:
  • Companies engaged in international trade or that are in the process of internationalisation, and that meet at least one of the following requirements:
    • companies whose international operations, as reflected in the latest available financial information, account for at least one-third (33%) of their turnover, or
    • companies with regular export activities (those that have carried out regular exports over the past four years in accordance with the criteria established by the Secretariat of State for Trade).
  • Companies that are experiencing liquidity problems or which lack access to funding as a result of the impact of the COVID-19 crisis on their economic activity.
  • Excluded: companies in technical insolvency or in pre-insolvency proceedings, and companies in default of payments to public sector companies or that have outstanding debts with the government.
  • Structure: two tranches of Euros 1,000 million each, the second of which will enter into effect in June 2020.
  • Features of the working capital loans
  • The use of the funds does not need to be linked to the arrangement of export agreements.
  • They must be for new financing needs and not for situations dating from prior to the current crisis.
  • The provisioning percentage for credit risk must not exceed 80% and a maximum term of five years.
  • For loans maturing after 31 December 2020, the loan principal may not exceed:
    • Twice the annual personnel expenses of the Borrower during 2019 or the latest available year. For companies incorporated after 1 January 2019, the loan may not exceed the estimated salary cost for the first two years of operation; or
    • 25% of total Borrower revenues in 2019; or
    • Provided the liquidity needs are adequately justified (they may be based on the Borrower’s statements), the loan amount may be increased to cover the liquidity needs for the next 18 months for SMEs and 12 months for larger companies.
    • For loans that are repaid before 31 December 2020, the amount of loan principal may exceed the aforementioned amount, provided that it is duly justified and is   proportionate to the assistance.

Public procurement measures:

  • Particularly noteworthy in this regard is the inclusion of a modification to the Public Sector Contracts law, which regulates the opening of the envelopes or electronic files of bidders whose bids are assessed on the basis of criteria quantified merely by application of certain formulae, as part of the simplified opening procedure. This development does away with the requirement for envelopes to always be opened in a public act. 
  • Elsewhere, Royal Decree-Law 11/2020 has been amended to clarify that procurement procedures continued by agreement of public sector entities in the exceptional circumstances presented by the state of emergency may be subject to a special appeal, with the relevant time periods continuing to run on the terms envisaged in the Public Sector Contracts Law, and without the above appeal procedure being deemed suspended

Implementation of the COVID-19 moratorium

  • Notaries’ fees for intervention in contracts formalising the temporary suspension (moratorium) of contractual obligations under any of the non-mortgage-backed loans or credits referred to in Royal Decree-Law 11/2020 will be those provided for in the Decree of 15 December 1950, with a 50% discount subject to a minimum of Euros 25 and a maximum of Euros 50, for all items, including copies and service.
  • Registrars’ fees for entry on the register of temporary suspensions of contractual obligations will be charged at a fixed sum of 6 Euros.
  • The above notaries’ and registrars’ fees for formalisation and registration must be paid by the creditor in all cases.
  • The Royal Decree-Law also regulates the unilateral grant by credit institutions of notarial instruments formalising suspensions deriving from the statutory moratorium on loans and credits secured by mortgages or otherwise or by some other registrable right, explaining that the purpose of the above instruments is to document unilateral acknowledgement by the creditor of an obligation established ex lege. This measure is designed to facilitate the registration of such instruments, as the case may be, on the relevant register.

Flexibilization measures in certain sectors

Generally speaking, flexibility measures have been adopted to adjust the regulations governing certain sectors and activities, including ports, university research, technological centres, agricultural workers and cooperatives, to the current situation. These measures call for detailed analysis by each of the affected sectors, with the following being particularly worthy of note:

Cooperatives

  • The Fund for Education and Promotion of Cooperatives is permitted, on an extraordinary and temporary basis, to engage in any activity that contributes to curbing or alleviating the effects of the health crisis triggered by COVID-19.

Worker-owned enterprises and investees

  • Some of the requirements permitting public listed companies or limited-liability companies to be classed as worker-owned entities have been temporarily and extraordinarily relaxed.

Ports

  • Royal Decree-Law 15/2020 introduces a series of exceptional and transitional measures to mitigate the economic impact of COVID-19 on this sector.

Insurance and welfare entities

  • The RDL provides for the possible extension of certain deadlines and time periods for filing information to the Directorate-General of Insurance and Pension Funds

Start-ups

  • Payments can be postponed on loans granted by the General Secretariat for Industry
  • The state will guarantee around 80% of unpaid loans to self-employed workers and small and medium-sized companies

Customs Measures

Customs formalities

  • Acceptance of customs bank guarantees in electronic format (scanned copies), where the usual procedure is the physical registration of the original bank guarantee.
  • Where it is not possible to physically stamp the ATA carnets, a copy should be sent by electronic means and the Customs Office will issue a receipt of the presentation by electronic means.
  • The sealing of goods in transit may be replaced by a description of the goods which is sufficiently precise to easily identify them and which specifies the quantity and nature of the goods and their particular characteristics.
  • Simplification of import pharma authorizations request for sanitary and non-sanitary products used in the treatment of Covid-19 or to prevent its spread: masks, gloves, coveralls or goggles, as well as medical devices such as surgical masks, examination gloves and certain types of gowns
  • Easing of formalities related to certificates of origin: acceptance of scanned copies while Covid-19 measures are in force. A specific procedure has been enabled to electronically issue EUR-1 certificates of origin.
  • Due to the restrictions in force for on-site procedures, phone numbers for each Customs Office in Spain have been published.
  • All the EUR-1, EUR-MED and A.TR certificates will be issued "a posteriori". For this reason, exporters are encouraged to request origen self-declaration authorisations, such as the approved exporter authorisation and registered exporter within REX system.

Payment facilities

Possibility of defer the payment of customs duties and import VAT arising from customs declarations up to six months, under the following conditions (among others):  the debt amount is between 100 euros and 30,000 euros, foreseen for importers with a volume of operations not exceeding 6M euros in 2019.

 Other

Freelance workers and SMEs are allowed to request a payment deferment of invoices for supplies of electricity, natural gas, manufactured gases and liquified petroleum gases by pipeline. Likewise, supplies' distributors will be able to postpone the payment of VAT and excise duties on invoices where the payment has been suspended.

Duty relief

  • VAT exemption in the import of goods intended for disaster victims, of a charitable nature (defined in EU Regulation 1186/2009). The VAT exemption is subject to its authorization by the Spanish Tax Authorities, which may be electronically requested and granted. The import should be made by government bodies or authorized entities of a charitable or philanthropic nature.
  • Customs duties exemption in the import of goods intended for disaster victims, of a charitable nature (defined in EU Regulation 1186/2009). While awaiting its validation by the European Commission, such goods may be imported duty free if the importer provides a guarantee covering the duties amount and submits an specific declaration where it agrees to pay potential customs duties in case these are finally not exempt. The import should be made by government bodies or authorized entities of a charitable or philanthropic nature. (Effective, subject to authorization)
  • Update: Spanish Customs Authorities have published a new guideline, where it is stated that importers different than State bodies or charitable / philanthropic organisations may also enjoy the duty-free treatment if a specific procedure is followed.
  • Easing of formalities related to certificates of origin: acceptance of scanned copies while Covid-19 measures are in force. A specific procedure has been enabled to electronically issue EUR-1 certificates of origin.
  • Due to the restrictions in force for on-site procedures, phone numbers for each Customs Office in Spain have been published.

Export

  • In Spain the Ministry of Industry and Commerce is the one competent to issue export licenses and authorizations, such as the ones in Commission Implementing Regulation 2020/402 of 14 March.

Customs audits

  • Suspension and extension of terms regarding audits/ inspections: the term to submit documentation  requested by the Tax authorities before March 17th has been extended to April 30th 2020, and the term to provide the documentation requested after March 17th is extended until May 20th 2020.

Measures to ease the lockdown

  • MAY 2 Individuals and families able to exercise outside.
  • MAY 4 Deconfinement begins on smaller Spanish islands. Some local shops allowed to open, by appointment. Restaurants and bars allowed to open for takeaway meal service. Borders remain closed, and no travel between provinces permitted. Face masks “highly recommended” on public transport and outside the home.
  • MAY 11 Deconfinement begins in mainland Spain. Approach will be phased, based on local circumstances with no fixed timetable. Shops and food markets reopen with social distancing and reduced capacity. Restaurants and bars allowed to reopen their terraces at 30 per cent capacity. Hotels to reopen, without communal spaces. Places of worship reopen with 30 per cent capacity. Public transit reopened with full service, but reduced passenger numbers.
  • As of April 27, the Spanish government said it had carried out more than 1m of the more reliable PCR tests, and 310,000 antibody tests. Those who test positive are required to self-isolate until three days after the fever has broken and a minimum of seven days after the beginning of symptoms. Serious cases are sent to hospital.
  • END MAY Cinemas and theatres could reopen at 30 per cent capacity. Restaurants and bars able to offer table service at 30 per cent capacity. Places of worship allowed to increase to 50 per cent capacity.
  • MID-JUNE Large shopping centres reopen with reduced capacity. Bars and nightclubs reopen at 30 per cent capacity.
  • LATE JUNE — MID-JULY Travel between provinces may be allowed to resume.

Other measures and sources

Guarantee of liquidity to sustain economic activity

  • Measures in the area of public contracting to alleviate the consequences of COVID-19. (Art. 34)
    • Public contracts for ongoing utilities and services which can no longer be performed or are impossible to continue, as a result of COVID-19 or the measures adopted by the State, the autonomous regions or local authorities to combat the virus, will be automatically suspended from the moment their provision becomes impossible and until such time as they can be performed again.
    • When fulfilment of a public contract is suspended, the grantor must indemnify the contractor for the damage and loss effectively suffered during the suspension period, subject to an application and confirmation thereof. The compensation for damage and loss that may be paid to a contractor shall only include the following:
      • The salary costs of personnel that are assigned on 14 March 2020 to the normal performance of the contract, during the suspension period.
      • Costs of maintaining definitive guarantees, related to the contract suspension period.
      • Rental or maintenance costs of machinery directly allocated to the performance of the contract, provided that the contractor can provide evidence that these could not be used for any other purposes.
      • Expenses of insurance policies stipulated in the specifications and related to the purpose of the contracts entered into by the contractor and that were in force at the time the contract was suspended.

Suspension of the regime of liberalisation of certain foreign direct investments in Spain (Article 7 bis)

  • For the purposes of this article, all investments made by residents in countries that are not part of the European Union and the European Free Trade Association are considered foreign direct investments in Spain when the investor holds an interest of 10% or more of the share capital of a Spanish company or when as a result of a corporate transaction, legal act or transaction they effectively participate in the management or control of this company.

Suspension of the regime of liberalisation of foreign direct investments in Spain, in the following sectors:

  • Critical infrastructures: (energy, transport, water, healthcare, communications, media, data treatment or storage, aerospace, defence, electoral or financial industries, and sensitive facilities), as well as key land and real estate assets for the use of these infrastructures.
  • Critical technologies and dual-use goods, including artificial intelligence, robotics, semiconductors, quantum, nuclear, among others.
  • Supply of key inputs.
  • Sectors with access to sensitive information.
  • Furthermore, suspension of the regime of liberalisation of foreign direct investments in Spain, in other circumstances (e.g. an investor controlled by the government of a third country).

Moratorium of mortgage debt for the acquisition of the principal residence (Royal Decree-8 2020)

  • Area of application of the moratorium of mortgage debt for the acquisition of the principal residence:
    • This will be applied to mortgage-backed loan agreements when the debtor is in a situation of economic vulnerability, as well as the guarantors of the main debtor
  • Definition of situation of economic vulnerability.
    • The mortgager becomes unemployed or in the case of an entrepreneur or professional, suffers a substantial loss of income or substantial decline in their sales (in excess of 40%).
    • The total income of the members of the family unit in the month prior to the application for the moratorium do not exceed:
      • 3x the IPREM (Spanish Public Indicator of Multiple Effects Income) (increased for each dependent child and in single-parent families or for a family member with a disability).
      • The mortgage instalment, plus expenses and basic supplies is in excess or equal to 35% of the income of the family unit.
      • As a result of the health crisis, the family unit’s economic circumstances have been significantly affected (the effort to meet the mortgage payment versus the family’s income has been multiplied by at least 1.3)
  • Application and granting of the moratorium of real estate mortgage debts.
    • Debtors may request from the creditor a moratorium in the payment of the mortgage-backed loan for the acquisition of their principal residence up until 15 days after this Royal Decree-law is no longer in effect,
    • Once the application for the moratorium has been made the creditor has a maximum period of 15 days for its implementation.
    • Once the moratorium has been granted the creditor shall notify Banco de España of its existence and duration for accounting purposes and that it has not been included in the calculation of the risk provisions.
    • Whilst in force neither the usual interest nor late-payment interest will be accrued.

Other measures– Royal Decree-10 2020 (Recoverable paid leave for workers employed by third parties who do not provide essential services)

  • The priority of the regulation contained in this rule is to limit mobility as much as possible. And the sectors of activity whose workers are excluded from the compulsory enjoyment of the permit are justified by strict reasons of necessity.

Application (between March 30 and April 9, 2020)

  • This royal decree-law will apply to all employees who provide services in companies or entities of the public or private sector and whose activity has not been halted as a result of the declaration of alarm status.
  • However, the following are exempt from the scope of application:
  • Workers who provide services in the sectors classified as essential in the annex to this royal decree-law.
    • Workers who provide services in the divisions or production lines whose activity corresponds to the sectors classified as essential in the annex (among others, health care services, production and supply chain related to essential goods, hospital services or production of health care products, restaurants with home delivery services, penitentiary services, the Amy and its supply chain, delivery services related with online sales, for further detail or other groups
    • Workers hired by (i) those companies that have requested or are applying a temporary suspension employment regulation file and (ii) those who have been authorized a temporary suspension employment regulation file during the validity of the permit provided for in this royal decree-law.
    • Workers who are on sick leave due to temporary disability or whose contract is suspended for other legally established causes.
    • Workers who can continue to carry out their activity normally by teleworking or any of the non-contact modalities.

Measures to ease the lockdown

  • MAY 2 Individuals and families able to exercise outside.
  • MAY 4 Deconfinement begins on smaller Spanish islands. Some local shops allowed to open, by appointment. Restaurants and bars allowed to open for takeaway meal service. Borders remain closed, and no travel between provinces permitted. Face masks “highly recommended” on public transport and outside the home.
  • MAY 11 Deconfinement begins in mainland Spain. Approach will be phased, based on local circumstances with no fixed timetable. Shops and food markets reopen with social distancing and reduced capacity. Restaurants and bars allowed to reopen their terraces at 30 per cent capacity. Hotels to reopen, without communal spaces. Places of worship reopen with 30 per cent capacity. Public transit reopened with full service, but reduced passenger numbers.
  • As of April 27, the Spanish government said it had carried out more than 1m of the more reliable PCR tests, and 310,000 antibody tests. Those who test positive are required to self-isolate until three days after the fever has broken and a minimum of seven days after the beginning of symptoms. Serious cases are sent to hospital.
  • END MAY Cinemas and theatres could reopen at 30 per cent capacity. Restaurants and bars able to offer table service at 30 per cent capacity. Places of worship allowed to increase to 50 per cent capacity.
  • MID-JUNE Large shopping centres reopen with reduced capacity. Bars and nightclubs reopen at 30 per cent capacity.
  • LATE JUNE — MID-JULY Travel between provinces may be allowed to resume.

Extension of deadlines to file an appeal or economic-administrative claims (eighth additional provision)

  • For tax related purposes, from 14 March 2020 (date when Royal Decree 463/2020, declaring the state of emergency, came into effect) until 30 April 2020, the deadline to file an appeal or administrative claim – governed by either the LGT and its development regulations or the revised text of the Regulatory Law for Local Tax Authorities (TRLHL) – will begin on 30 April 2020 and will apply to:
    • Cases for which the appeal period of one month had started since the day after the notification of the act or contested resolution, and this period had not ended by 13 March 2020.
    • Cases for which the notification of the administrative act or resolution subject to an appeal or claim had not yet been communicated.

Non-computation of the deadline within which to execute resolutions of the economic-administrative courts from 14 March 2020 until 30 April 2020, and suspension of expiration and prescription periods from 14 March 2020 until 30 April 2020 (ninth additional provision)  

  • The Royal Decree-Law 8/2020 established that the period between the date it came into effect (18 March 2020) and 30 April 2020 will not count towards the maximum duration of the application procedures for taxes, sanctions and reviews undertaken by the National Tax Office (AEAT), nor towards the procedures initiated by the General Directorate of Cadastre.
  • In reference to said period, RD-Law 11/2020 establishes:
    • The period from 14 March 2020 to 30 April 2020 does not count towards the allocated timeframe for the execution of the resolutions of the economic-administrative bodies.
    • The prescription and expiration periods of any actions and rights contemplated in the tax regulations are suspended from 14 March 2020 until 30 April 2020.
    • The aforementioned is applicable to the actions and procedures that are governed by established practice at the national, regional and local levels.
    • It is expressly recognized that the extensions of terms for the payment of tax debts included in the aforementioned article 33 of RDL 8/2020 apply to all other appeals of a public nature.

Exemption from the progressive fees of notarized AJD documents to the formalization deeds of contractual novations of loans and mortgages regulated in the first final provision of RDL 8/2020 (section nineteen of the first final provision).

  • As stated in the first final provision of RD-Law 8/2020, it incorporated item 23 in article 45.I, B) of the Consolidated Text of the Tax Law on Property Transmissions and Documented Legal Acts (Royal Legislative Decree 1/1993, 24 September), declaring exempt from the progressive fees of notarized documents of type documented legal acts of this Tax to the deeds of formalization of the contractual novations of loans and mortgages that are produced under the aforementioned Royal Decree-Law.
  • Section nineteen of the first final provision of RD-law 11/2020 adds a new item 28 to art. 45.I.B), clarifying that this exemption will only be applicable to cases relating to the moratorium on mortgage debt for the acquisition of a main residence (regulated in articles 7 to 16 of Royal Decree-Law 8/2020)

Temporary suspension of certain payments by electricity and natural gas retailers, and by distributors of manufactured gas and liquefied petroleum gas (via pipeline) (art. 44.4 RDL 11/2020).

  • Electricity and natural gas retailers and distributors of manufactured gases and liquefied petroleum gases by pipeline are exempt from payment of VAT, Special Electricity Tax (if applicable) and Special Hydrocarbon Tax corresponding to the invoices whose payment has been suspended, until the consumer has fully paid them, or six months have elapsed since the end of the state of emergency.

Provisional measures for the issuance of authorised electronic certificates (eleventh additional provision) 

  • During the state of emergency, the issuance of authorised electronic certificates will be permitted in accordance with the provisions in article 24.1.d) of Regulation (EU) 910/2014 of 23 July, regarding electronic identification. Their use will be limited exclusively to the contractual relationship between the owner and public administrations and will be revoked at the end of the state of emergency.

Main sources of information:

  • Spain: Tax relief measures responding to coronavirus (COVID-19)
  • Real Decreto-ley 6/2020, de 10 de marzo, por el que se adoptan determinadas medidas urgentes en el ámbito económico y para la protección de la salud pública
  • Real Decreto-ley 7/2020 (PDF 410 KB), de 12 de marzo, de medidas urgentes extraordinarias para hacer frente al impacto económico y social del COVID-19
  • Real Decreto 463/2020, de 14 de marzo, por el que se declara el estado de alarma para la gestión de la situación de crisis sanitaria ocasionada por el COVID-19
  • Real Decreto-ley 8/2020, de 17 de marzo, de medidas urgentes extraordinarias para hacer frente al impacto económico y social del COVID-19
  • Real Decreto 465/2020 (PDF 226 KB), de 17 de marzo, por el que se modifica el Real Decreto 463/2020 de 14 de marzo para la gestión de la situación de crisis sanitaria ocasionada por el COVID-19
  • Real Decreto-ley 9/2020, de 27 de marzo, de medidas complementarias, en el ámbito laboral para paliar los efectos derivados del COVID-19
  • Real Decreto-ley 10/2020, de 29 de marzo, por el que se regula un permiso retribuido recuperable para las personas trabajadoras por cuenta ajena que no presten servicios esenciales, con el fin de reducir la movilidad de la población en el contexto de la lucha contra el COVID-19
  • Resolución de 25 de marzo de 2020, de la Secretaría de Estado de Economía y Apoyo a la Empresa, por la que se publica el Acuerdo del Consejo de Ministros de 24 de marzo de 2020, por el que se aprueban las características del primer tramo de la línea de avales del ICO para empresas y autónomos, para paliar los efectos económicos del COVID-19.
  • Real Decreto-ley 11/2020, de 31 de marzo, por el que se adoptan medidas urgentes complementarias en el ámbito social y económico para hacer frente al COVID-19

Main sources of information:

Customs measures implemented

  • Spanish Customs authorities’ Notice "NI DTORA 01/2020" of 16th March 2020
  • Spanish Customs authorities’ Notice "NI GA 08/2020" of 27th March 2020
  • Spanish Customs authorities’ Notice "NI GA 06/2020" of 26th March 2020
  • Spanish Customs authorities’ Notice "NI GA 09/2020" of 30th March 2020
  • Spanish Customs  website

Other tax measures with implications for Customs

  • Spanish Royal Decree 8/2020

Contact us

Tax: Carlos Marin Pizarro – carlosmarin@kpmg.es / Itziar Galindo – igalindo@kpmg.es
Restructuring: Angel Martin Torres – amartin@kpmg.es
Legal: Francisco Uria - furia@kpmg.es / Labor: Francisco Fernandez - franciscofernandez@kpmg.es