Help For Self-Employed (Autónomos) – State of Alarm

Posted in: Coronavirus/Covid-19 Articles


Help for Self-employed and contracted workers has been necessary due to the State of Alarm caused by covid-19 or coronavirus. We are in exceptional times and exceptional measures have been called for in Spain. We have written articles on help for employees/workers and also for tenants. This article details the current help for Self-Employed (Autónomos) by the Spanish State.

As a recap the Law of the 14th March stated that many businesses had to close. This was followed by a further law of the 30th March which tightened the rules further.

In this latter one the government published that all but absolutely essential businesses had to stop or work from home. The government published a list of businesses that up to that point had been working that now had to stop, including for example construction. There is some excellent information on this on the Facebook site of N332.

At the time of writing these businesses can start again on April 9th (which effectively means they will not work until after the Easter period because of the bank holidays).

This means that unless further measures are announced over the next few days some self-employed people can return to work at the end of this week. Those affected by being restricted from working from the 30/3 until the 9/4. (We reiterate that this is unless matters change again).

Help Available for the Self Employed

Self-employed who have stopped working:

Extraordinary benefit: For one month from March 14, 2020, the self-employed are entitled to an extraordinary benefit of 70% of their regulatory base. (70% of the minimum contribution base in case the mínimum contribution has not been credited).

In the event that the State of Alarm is extended, (as it has been now until the 26th April), then this period may be extended. Until the last day of the month in which this situation ends (so for now the end of April).

This benefit will be taken into account for the future and will not reduce periods of benefit to which the beneficiary may be entitled in the future for stopping working.

To apply for the special benefit you need to present a sworn statement to your Mutua (via your gestor or accountant). There will be a special entity to process all applications. There is no need for a ‘baja’ or ‘cese de actividad’. The application can be processed retrospectively.

Cases

  1. When the activity is suspended or,
  2. When the billing in the month prior to which the benefit is requested is reduced by at least 75%. (This is in respect of the billing average of the previous 6 months).

Requirements

  1. Be affiliated and registered in the Social Security System as at the 14th March.
  2. If the activity has not been directly suspended, you must prove the reduction in your billing by at least 75% in respect of the previous 6 months.
  3. Be up-to-date in the payment of contributions to Social Security.

Otherwise, a period of 30 calendar days is granted for the payment of the quotas due. Also and the acquisition of the rights of protection.

The Social Security link that contains the information on the extraordinary benefit approved by the Spanish Government.

Self-employed who have not stopped working

Deferrals (moratoriums) in the payment of Social Security contributions. Thus the possibility of deferring the payment of Social Security contributions without interest and for a period of 6 months. This is for April to June 2020 for companies and May to July 2020 for the self-employed.

Moratorium requests must be submitted through the channels authorised by the Government for such purposes. They must be communicated to the General Treasury (Generalitat Valenciana) within the first 10 calendar days of the income period corresponding to each accrual.

Deferment of payment of debts to Social Security

There is the possibility of postponing the payment of Social Security debts for the months of April to June 2020.

0.5% interest will be applied, providing there was no other agreement for deferment in place. Requests for debt payment moratorium must be submitted within the first 10 calendar days of the income period corresponding to each accrual.

Help for Self-Employed Workers is available but complicated and you need to contact your accountant.

Help for Self-Employed With Workers

If you have a business with workers, you can also request the above. You process an ERTE for your workers. At the same time, you apply for the benefit for yourself, and then there is no need to make the autónomo payment during this State of Alarm.

How to Apply

Please note that this is only for information (correct as at 7.4.20). This is not a matter that we can help with as lawyers, the self employed worker must contact their normal gestor/accountant. They will advise what to do. If you have any legal matter we can assist with please let us know.