Assistance for the Self-Employed – Coronavirus

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Posted and filed under Businesses in Spain, Financial outlook, General Articles of Interest, In the Spanish News.

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Assistance for the self-employed or autónomos is now available in Spain. The coronavirus pandemic has caused devastation amongst the workforce and businesses and self.employed people alike.

The government published a decree on the 14th March ordering many businesses to close. There was then a further law on the 30th March which restricted many more workers. As at now (7.4.20), all but essential businesses have had to stop or work from home if possible. The first law did not affect all autónomos or self-employed. However the second one did.

The State of Alarm is in place currently until the 26th April affecting movement, but the businesses and workers affected by the decree on March 30th, this ends on the 9th April (as at now). This would mean, for example, a construction site worker may be able to return to work, unless things change next week. But not those affected by the first decree.

Assistance for the Self-Employed

For those who have had to stop working, the self-employed can access as measure of a benefit if 70% of their “regulatory base”. (or 70% of the minimum contributed if they have not credited it all). This is from the 14th March until the end of the month in which the State of Alarm ends. So end of April at the moment.

To get this you need to contact your accountant or asesor, who will arrange it. You do not need to do a “Baja” or officially stop working as this is a special measure by the government. This is for the self-employed where your work is forbidden or your official income has reduced by 75% (from an average over the last half year. You would have to prove this if your activity was not permitted to carry on and of course you must be registered officially as “autónomo”. You can apply, retrospectively, until the last day of the month following the month the State of Alarm ends.

For those who have not been prevented to stop working (but affected), there is also the possibility of delaying paying social security contributions (with no interest). You have to make the request properly and again need to go through your asesor or accountant.

If you have a business and employees, please also refer to your accountant. If you have not already done so, you can process an ERTE. Also you yourself can apply for the above benefit. Contact your accountant for help on these matters.

8 Comments

  • Dani

    I have been an autonomo for 2 years but activity ceased due to covid in April. I stayed registered, also some fees got suspended during this period. Now I am getting charged social security, yet with no autonomo activity and it’s all costing me. I never applied for any support nor did baja or cease of activity. Can I do the baja now and back date it to the day the activity ended or which date should I put? Does it need to be today’s date or end of trade date or any other for tax or other reasons? Can I claim back the social security payments I got charged lately due to no activity of my autonomo?Please advise how to proceed.Thank you

    • Jane

      Hi Dani

      Your fiscal advisor that deals with your autonomo will be able to guide you on this as they will have full details of your earnings etc.

      Kind Regards

      Jane

  • Gst Return Filing

    These are some great information that you have shared here about assistance for the self employed coronavirus. I really loved it and thank you very much for sharing this with us. You have a great visualization and you have really presented this content in a really good manner.

    • Jane

      Thanks for your great feedback Stuart. We will continue to help everyone with updates as we receive them.

      Kind Regards

      Jane

  • Ian

    I have recently been informed that as a recent “alta” to autónomo (9 months ago) and have been paying the reduce discounted rate for social security, that if I decide to “baja” my autónomo status as returning to the UK, I will be charged the difference between discounted rate and full rate for the time I have been autónomo. Is this accurate?

    • Nicola Ryan

      Afternoon Ian,

      Thank you for your enquiry.

      The flat rate for the self-employed is enjoyed for a period of two years, it increases in 1 year, 6 months and another 6 months. If you baja your autonomo, and want to be autonomo again in the future, you will be charged the full fee, but the period you have already paid remains as it is. We hope this helps.

      Kind regards
      Nicola

  • Peter Bailey

    I’ve been receiving the pandemic assistance since the pandemic started and my work all disappeared. Now I am being told that I won’t qualify for the extension to Sept 2021 because I have had no earnings. That makes sense to me. What doesn’t make sense is that if I now go baja de autonomo that I can’t register for unemployment benefit as they are retrospectively counting all the time with pandemic support as unemployed and subtracting that from the available unemployment payment time. This is a strange rule that effectively gives me no assistance to live despite two teenage children. I don’t understand how the Spanish state can continue with its antiquated welfare support during these continued periods of complete uncertainty.

    • Nicola Ryan

      Afternoon Peter,

      We understand your frustration.

      We would recommend contacting your accountant to double-check that there are no benefits or grants available to you, that you may be unaware of. We hope this helps and your situation gets better for you.

      Kind regards
      Nicola

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