Spanish Government Steps Up To Help Self Employed Expat Businesses

Expat SMEs in Spain are less than happy about the government’s insistence on social security contributions, even although financial assistance is being offered.

Spain’s devastating number of coronavirus infections has wrecked the turnovers of expat-owned small businesses, but the Spanish government are insisting their monthly social security payments of €283 must still be paid. The ruling will hit hard on self-employed expats whose businesses are now closed, even although the payments will be subject to a moratorium for May and June. The self-employed who’re already getting cessation of activity benefits will be able to claim back the payments, but this concession only covers 360,000 workers and their businesses must have experienced a 70 per cent decline in income.

The level of assistance for single-owner businesses varies dependent on regional governments’ take on the situation with, for example, Andalusia agreeing to pay the self-employed a sum of €300 by the end of this month, thus covering most of April’s social security bill for the 40 per cent affected. Expats in the region now claiming unemployment benefits aren’t eligible for the payouts, nor are those classified as ‘essential workers’ by a Royal Decree.

SME owners and the self-employed in Valenciana may apply for a €1,500 government grant up until May 4, but must prove their businesses are now inactive due to the covid-19 crisis. Those experiencing a 75 per cent cut in their average monthly income can claim €750 simply by visiting the local government’s employment web page. However, there’s a long list of exceptions under which claims cannot be made.

Self-employed expats in the Balearics can also access a benefit if they’ve suffered a 75 per cent loss in income over the previous month, and can also access loans charging low interest rates as well as payment deferrals on credit card and other loan payments. Requirements for loans and deferrals are to be broadened to ensure all in need will have access, and a massive €50 million fund is now in place to help the self-employed deal with the economic effect of the pandemic.