Spain’s government has announced a series of tax breaks and access to short term loans for small and medium sized enterprises (SMEs) and the self-employed to help cushion the financial impact of the Coronavirus. The government has allocated a budget of around 14,400 million euros to help keep SMEs and the self-employed afloat.
According to an official State bulletin, tax payments of up to 30,000 euros (applicable from 13th March until the 30th May, 2020) can be deferred for up to six months. The State is also providing access to loans for both SMEs and the self-employed, particularly those in the hospitality and tourism industry, so they can continue to operate and pay their seasonal staff.
The self-employed, for example, will be entitled to loans for ‘loss of earnings’, where they can borrow up to 75% of their usual salary. However, to access these loans, they will have to demonstrate a sharp fall in their earnings as a direct result of the Coronavirus.