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Guide to applying for DANA aid for individuals, self-employed workers and businesses
The Government of Spain will provide 10.6 billion in aid to Valencia and other municipalities affected by the floods
The Spanish government has announced a series of measures to support individuals, self-employed workers and companies affected by the DANA (Isolated Depression at High Levels) disaster.In total, 10.6 billion euros in funding has been allocated to help those in the province of Valencia and other municipalities who have suffered financially as a result of the floods last week, and the first aid packages should start finding their way to victims later this month.
Below, we’ve summarised the key details on how and when to apply for aid.
Direct aid for self-employed workers and businesses
The 30,000 self-employed workers in the 78 municipalities affected by the DANA will be able to benefit from direct aid of 5,000 euros per person. Meanwhile, the 65,000 companies in these municipalities will be able to request direct aid of between 10,000 and 150,000 euros (depending on their turnover).
These applications can be submitted between November 19 and December 31.
This aid will be paid via transfer from December 1, and at the latest, within a maximum period of one month.
Applications can be made through the Tax Agency's electronic headquarters, and a specific section will be enabled on the website for this purpose.
The Treasury estimates the total cost of aid to self-employed workers at 325 million and that of aid to companies at 513 million.
Crucially, these direct aids to SMEs and self-employed workers will be exempt from personal income tax and corporate tax, as will aid for personal injuries caused by the DANA.
Payment of personal income tax
In Spain, people who owe money back after declaring their income tax have the option to pay in instalments, and the second payment was due on November 5. However, the Ministry of Finance has suspended this second instalment for those in affected areas until February 5.
The Tax Agency has agreed with financial institutions not to charge these citizens the amounts that were scheduled for November 5, and if the charge has already been made, the Tax Agency has instructed the financial institutions to return the amounts within a maximum period of three working days.
Application for personal assistance
Applications for aid for personal injury, damage to housing, property or establishments can be submitted until January 6.
Aid for personal injury includes:
- 72,000 euros for each case of death or absolute and permanent disability caused by the DANA.
Aid for damage to property and housing includes:
- 10,320 euros for destruction or damage to essential household goods.
- 20,640 euros for damage that does not affect the structure of the habitual residence.
- 41,280 euros if it does affect the structure of the habitual residence.
- 36,896 euros for damage to common elements of a community of owners.
- 60,480 euros for total destruction of the habitual residence.
Tax deadlines
All procedures for taxpayers with tax domicile in municipalities affected by the DANA that expired on or after October 28 have been extended until January 30.
In addition, deadlines for payment of settlements, debts and instalments of deferrals that have not been completed by November 7 have been extended until February 5.
Deferral of tax debts
Anyone who owes a tax debt with a deadline from October 28 to January 30 will be able to defer their payment for up to 24 months, and no late payment interest will be charged for the first 6 months.
The Treasury has estimated that this measure will have an economic impact of 300 million.
Minimum Vital Income (IMV) and non-contributory pensions
The Government's measures include an automatic 15% supplement to the Minimum Vital Income (IMV) in the November, December and January paychecks for its recipients in the areas affected by the DANA, regardless of the amount they were receiving.
"It will be made effective at the end of November, automatically, without the need for any procedure or application," explained the Secretary of State for Social Security, Borja Suárez.
The same applies to recipients of non-contributory pension benefits.
It is estimated that this measure will benefit 100,000 people receiving these two types of benefits and that, in total, it will cost 11.5 million.
Disability benefit
New medical certificates for sick leave with the 'DANA code' will come into effect this week, meaning that workers with physical and psychological ailments linked to the flooding, who have to remain on sick leave, will have extraordinary protection.
This includes a higher benefit (75% of the regulatory base from the day after the sick leave, compared to the current 60%), between October 29 and November 30.
Furthermore, pensions granted for permanent disability, orphanhood and widowhood due to the DANA are considered work accidents and so will also benefit.
According to Social Security, beneficiaries of this aid will simply need to see their doctor and request a sick leave certificate; no further paperwork is required.
Cessation of self-employed activity
Self-employed workers who are unable to work because their business has been paralysed will be able to benefit from the cessation of activity benefit, in the improved form to assist those affected by the DANA.
This must be requested from the collaborating mutual insurance companies online and can be done from this Wednesday, with retroactive effect from October 29.
In general, this benefit allows the self-employed person to collect 70% of the regulatory base for which he or she was paying contributions. So if he or she pays the minimum fee, the benefit will be 514.70 euros per month and the maximum amount is capped at 1,350 euros (225% of the IPREM).
As a novelty, Social Security allows self-employed people affected by the DANA to request this benefit for cessation even if they had been registered only one day before the floods (the usual 12-month waiting period will not be required). In addition, this payment will not impact rights for future benefits and the period will be counted as paid contributions.
ERTE
Companies in municipalities affected by the DANA can temporarily suspend the employment of their staff or reduce their working hours. Workers will be protected with unemployment benefits, and the period of the ERTE will be considered as paid-in.
Employers must apply for ERTE from the labour authority. The Secretary of State for Social Security has estimated that around 400,000 workers will be eligible for ERTE due to force majeure to protect employees and for the cessation of activity benefit for self-employed workers.
Farming and agriculture
Farmers and agricultural workers in municipalities affected by flooding will benefit from income tax reductions and VAT reductions.
Fee exemptions
Direct personal aid, as well as aid intended for self-employed workers and companies, are all exempt from taxation in the Personal Income Tax (IRPF) or in the corporate tax, where applicable.
The measures of the decree also exempt the payment of the property tax (IBI) of 2024 in the 78 municipalities affected by the DANA, as well as a reduction in the IAE.
It also establishes the exemption in the payment of fees for the issuance of DNI; for the deregistration of damaged vehicles, for duplicate circulation permits and for cadastral accreditation.
Image: Policia Nacional
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