Faster payment of Lorca earthquake aid and tax relief

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1. It creates a procedure to urgently pay aid to those affected by the May 11, 2011 Lorca earthquake, including aid for rental housing, replacing household goods, and repairing homes and business premises.
2. Payment is made by bank transfer to the beneficiary's account. The Instituto de Crédito Oficial processes payments through a funding line called "ICO-LORCA", capped at €115,000,000.
3. Anyone receiving aid to rebuild their home must apply for a municipal permit within two months. If they do not rebuild voluntarily, rebuilding can be imposed through forced execution, with SEPESSEPES Entidad Pública Empresarial del Suelo, a state public company for land and building matters. acting as the building agent.
4. Owners may voluntarily assign SEPES, by unanimous agreement of co-owners, to handle all reconstruction procedures, in exchange for assigning the right to collect the aid.
5. Tax benefits for the property tax and the business activity tax are extended to 2012, and those affected may defer 2011 corporate income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. and personal income tax debts for twelve months, with no guarantees required.
6. The Ministry of Economy and Competitiveness may grant the Lorca City Council up to €1.5 million for commerce projects, and within nine months the administrations will draft a plan to boost the town's economic and social recovery.

Who it affects

• People affected by the Lorca earthquake with approved aid.: They receive aid payments faster, by transfer to their account.
• Owners of demolished homes.: They must apply for a rebuilding permit within two months or rebuilding can be forced on them.
• Taxpayers with tax residence in Lorca on May 11, 2011.: They can defer 2011 corporate and personal income tax debts.
• Lorca merchants and businesses.: They benefit from aid and extended tax breaks.

Words worth knowing

Instituto de Crédito Oficial (ICO)

A Spanish public entity that finances projects and, in this case, advances the money to pay the aid.

Ejecución forzosa (forced execution)

When the administration carries out a required building project because the owner has not done it.

SEPES

Entidad Pública Empresarial del Suelo, a state public company for land and building matters.

Agente edificador (building agent)

The party that takes on construction of the buildings on behalf of the owners.

Aplazamiento (deferral)

Postponing payment of a debt to a later date, here with late-payment interest.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries