Aid and payment breaks for those hit by the La Palma volcano

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1. Aid is granted for personal injuries and housing damage. Proof of ownership and damage is made easier, income limits are removed, and maximum amounts are doubled: up to €30,240 for total destruction of a primary home.
2. There are also grants for damage to businesses and industry, and for local councils that spent money on the emergency, which can cover 100% of those costs. The deadline to apply for this aid is six months.
3. A €63 million Extraordinary Employment and Training Plan is funded for the island. Affected companies and self-employed workers can also defer or postpone Social Security payments, and exceptionally withdraw money early from their pension plans.
4. Affected consumers can pause deadlines to withdraw from purchases or return products, cancel or postpone contracts they cannot use, and cancel trips to the island without penalty. There is a five-month deadline to exercise these rights.
5. A payment break is created that suspends payments on loans and credits, with or without a mortgage, for those affected. It lasts six months and can be extended by another six by agreement of the Council of Ministers, with no interest accruing during the suspension.
6. On taxes, 2021 property tax (Impuesto sobre Bienes Inmuebles) is waived on damaged properties and business activity tax (Impuesto de Actividades Económicas) is reduced. Tax debts can also be deferred for up to 12 months.
7. Affected self-employed workers and companies can change or suspend their electricity contracts at no cost, defer bill payments for six months, and terminate or suspend supply if the lava has affected it.
8. Direct aid is set up for affected farmers, livestock breeders and fishers, free guarantees through SAECASAECA Sociedad Anónima Estatal de Caución Agraria, a state-owned company that provides guarantees (avales) to farmers, livestock breeders and sector businesses., a €5 million grant for social services, and a €500,000 grant to support victims of gender violencegender violence Violence a woman suffers from a current or former partner because she is a woman. and hate crimes.

Who it affects

• People who have lost or damaged their home: They can apply for aid for personal injuries and housing damage, with doubled amounts and no income limit.
• Affected self-employed workers and companies: They can defer or postpone Social Security payments, withdraw pension plan money early, and make their electricity contracts more flexible.
• Affected consumers and users: They can pause withdrawal deadlines, cancel or postpone contracts, and cancel trips without penalty.
• Borrowers with loans or credits: They can benefit from the payment break on loans and credits with or without a mortgage.
• Farmers, livestock breeders and fishers: They receive direct aid, free SAECA guarantees, and compensation for the shutdown of their activity.

Words worth knowing

Moratoria (payment break)

A temporary suspension of debt payments, here on loans and credits, with no interest charged during that time.

Desistimiento (right of withdrawal)

The consumer's right to cancel a purchase or contract within a set period, usually without giving a reason.

Zona afectada gravemente por una emergencia de protección civil (ZAEPC)

An official declaration that an area has suffered a disaster, allowing the Government to grant specific aid.

Consorcio de Compensación de Seguros

A public body that pays compensation for extraordinary risks, such as natural disasters, when ordinary insurance does not cover them.

SAECA

Sociedad Anónima Estatal de Caución Agraria, a state-owned company that provides guarantees (avales) to farmers, livestock breeders and sector businesses.

gender violence

Violence a woman suffers from a current or former partner because she is a woman.

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