Due to the exceptional circumstances we are experiencing because of COVID-19, new grants for self-employed individuals have been established, which are as follows.
Measures
The Department of Labor, Social Affairs and Families has established a grant, in the form of an economic benefit, of up to 2,000 euros for self-employed workers – natural persons – who
can demonstrate a drastic and involuntary reduction in their turnover as a consequence of the effects of the coronavirus on their economic activity, and provided they are registered in activities that health authorities have ordered to close and do not have other alternative sources of income.
The grant will be awarded until the allocated budget of 7.5 million euros is exhausted.
Requirements
It is aimed at self-employed workers – natural persons – registered in the special regime for self-employed workers of the Social Security system.
Application submission deadline
Applications can be submitted
from April 1, 2020, given that to prove economic losses, income from March 2020 will be compared with that of March 2019.
In the case of self-employed workers with less than one year of seniority in the RETA (Special Regime for Self-Employed Workers), the comparison will be made with the average monthly turnover since registration with the RETA.
Amount and payment
Maximum
€2,000 in a single payment.
The factors that will be taken into account when deciding the amount of the grant will be related to the
documentary evidence of economic losses through the presentation of official documents that demonstrate them.
Cessation of activity for self-employed workers
Measures
Extraordinary benefit for
cessation of activity for individuals affected by the declaration of the state of alarm for the management of the health crisis caused by COVID-19.
Requirements
All self-employed individuals who find themselves in one of these two situations may apply for this benefit:
- When the activity of the self-employed individual is suspended due to the declaration of the state of alarm by Royal Decree of March 14, 2020.
- In the event that their activity is not directly suspended, when during the month prior to the application for this benefit, the self-employed individual can prove that their turnover has decreased by 75% compared to the average turnover of the previous semester.
They must be up to date with Social Security payments. If the self-employed individual is not up to date with payments, they have 30 days to regularize their situation.
The receipt of this benefit will be incompatible with any other Social Security system benefit.
Amount
The amount will be
70% of the monthly regulatory base.
Duration
The Extraordinary benefit will have a
duration of one month, extending, if applicable, until the last day of the month in which the
state of alarm ends, in case it is extended and lasts longer than one month.
The period of its receipt will be considered as contributed and will not reduce the periods of benefit for cessation of activity to which the beneficiary may be entitled in the future.
Self-employed contribution
The self-employed contribution does not have to be paid, provided that the self-employed worker
applies for cessation of activity. During the month that Social Security recognizes and grants this benefit, the self-employed worker will not have to pay the contribution. In the case of those who are not granted it or decide not to apply, yes
they must continue to pay their Social Security contribution.
