Deferment of state debts without guarantees and more COVID aid flexibility

Automatic summary, not yet reviewed

1. Those who must repay aid or loans from the General State Administration may request to defer or split payment during 2021 and 2022 without providing guarantees, if the pandemic caused them inactivity, lower sales or supply chain disruptions.
2. Applicants must submit a report explaining how the pandemic affected them, a certificate of their debts and a viability plan. If the debt exceeds €150,000 (or €250,000 counting earlier requests), the plan must be backed by a registered auditor.
3. The regional office of Economy and Finance may grant a deferment of up to two years from the due date, followed by installments of up to two more years. The debt will keep accruing late payment interest.
4. The autonomous communities and the cities of Ceuta and Melilla may add to the COVID direct aid line other sectors hit especially hard in their territory, even if they are not on the national list.
5. Exceptionally, they may grant aid to viable companies that in 2019 had negative results in personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings., corporate tax or non-resident income tax due to exceptional circumstances.
6. The rule takes effect the day after its publication in the Official State Gazette (Boletín Oficial del Estado).

Who it affects

• Companies and self-employed people with non-tax public debts to the General State Administration: They may request to defer or split debts from state aid or loans, without guarantees, during 2021 and 2022.
• Autonomous communities and the cities of Ceuta and Melilla: They may add sectors hit in their territory to the COVID line list and grant aid to companies with negative 2019 results due to exceptional circumstances.
• Self-employed people and companies in sectors affected by the pandemic: They may receive direct COVID line aid if they meet the activity drop requirements and the maximum limits set.

Words worth knowing

Aplazamiento y fraccionamiento (deferment and installments)

Allowing a debt to be paid later or split into payments.

Dispensa de garantía (waiver of guarantee)

Not requiring a guarantor or other guarantee to defer the debt payment.

Deuda de naturaleza pública no tributaria (non-tax public debt)

Money owed to the government that is not a tax, for example repaying a public grant or loan.

Periodo de carencia (grace period)

A time during which the debt does not have to be paid.

Intereses de demora (late payment interest)

Extra money paid for being late on a debt.

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