It has taken the government 18 days since it declared a state of emergency to adopt urgent social and economic measures. This time we are talking about rent and mortgages, most of which are being paid today.
The measures are many, 88 pages long, the “Royal Decree-Law 11/2020, of the 31st March, adopting urgent complementary measures in the social and economic field to deal with COVID-19.” and each one has its “little things”, so we will make a very brief summary of them and we remain at your disposal to clarify any specific question.
Moratorium on Social Security payments
The General Treasury of the Social Security may grant a six-month moratorium, without interest, to those who request it and fulfil the requirements and conditions, which have yet to be established by Order of the Minister.
The moratorium, if granted, would affect periods accrued between April and June or, for the self-employed, between May and July. The first condition, which is known, is not to have suspended activities due to the state of alarm (either by decree or by ERTE).
In any case, the moratorium must be requested within the first 10 calendar days of the regulatory deadline for payment), so there is still time for the Minister to order the requirements and conditions.
Deferment of payment of Social Security debts
Provided that you do not have another deferment in force, you can request a deferment of the debts whose payment corresponds to the months of April to June 2020 with an interest of 0.5%.
It must be requested within the first 10 calendar days of the payment period.
Time limits for appeals
Some technicalities relating to the calculation of deadlines for lodging appeals have been clarified. Particularly in the tax field.
Possibility to redeem pension plans
For six months from the 14th of March, vested rights in pension plans can be redeemed in certain specific cases:
- Being unemployed for reasons related to COVID-19.
- Being a business owner of establishments whose opening is not possible due to article 10 of the state of alarm decree.
- Self-employed persons who have ceased their activity due to COVID-19.
- The amount of the fees may not exceed the limits established in the RDL itself.
But be careful! The conditions and terms of this possibility may be regulated by regulation. So… it is better to be careful with regard to this possibility…
Measures aimed at vulnerable families and groups
Evictions are suspended for six months, counting from the lifting of the state of alarm, for vulnerable groups. If the landlord is also a member of a vulnerable group, it will be up to the social services to decide on the measures to be adopted.
On the other hand, if you are a tenant with a habitual residence contract subject to the LAU and this contract, or its extensions, ended during the state of alarm or the two months following the lifting of the state of alarm: you can request an extraordinary extension of six months.
Also in habitual residence, a rent moratorium is established which must, in any case, be requested by the tenant, consisting of a temporary and extraordinary deferral of the rent. The deadline for requesting the moratorium is one month from the 1st of April.
What is a vulnerable group?
The RDL defines it in good detail, summarised:
- That the working day has been reduced (for being unemployed, affected by ERTE or, voluntarily, for reasons of care) or, in employers, a substantial loss of income.
- Income is less than three times the IPREM (with higher limits for dependent children or people over 65 years of age).
- That they have people with a declared disability, in a situation of dependency.
- The RDL also defines in detail what documentation must be used to accredit the subjective situations, which we do not reproduce here for brevity.
Mortgage debt moratorium
The RDL of 17th of March (8/2020) is clarified, the mortgage debt to which this refers is specified in those contracted for the acquisition of:
Main residence
Properties used for the economic activity carried out by entrepreneurs and professionals (that meet the other requirements to apply for it).
Homes in a rented situation in which the landlord has stopped receiving rent since the declaration of the state of alarm or up to one month after the end of the state of alarm.
The requirements and documentation to apply for the moratorium are similar to the rental moratorium and are not reproduced here for the sake of brevity. Again, we are at your disposal to clarify any doubts you may have.
Unemployment benefit for domestic workers
Those who are registered in the mandatory special regime of the Social Security and who meet the requirements established in the RDL are entitled to the extraordinary allowance for lack of activity.
Unemployment benefit for temporary contracts
Workers who have had a fixed-term contract of at least two months’ duration terminated after the 14th of March, even if they do not have the necessary contributions to qualify for another benefit, will be entitled to exceptional unemployment benefit. This includes interim, training and/or relief contracts. The subsidy will be a monthly allowance of 80% of the IPREM for one month, extendable by RDL.
Other measures
Within similar requirements to the above, measures are established for:
- Access to the bono social,
- Suspend payment of electricity, gas, … supply contracts.
- Aspects of consumer protection have also been regulated, especially the right to terminate contracts and their deadlines.
Finally, a series of measures are included for legal persons in the area of boards of directors and boards of directors.
Please do not hesitate to contact us if you have any questions. Our staff will continue to be available by telephone and e-mail during the usual opening hours.
The team at Fargas, Blegal and now Bgestió
Picture credits: Pixabay
