Spanish Government Unveils 26 Anti-Crisis Measures

April 12th, 2010

The Spanish government has today approved a package of 26 anti-crisis measures covering six main sectors that they hope will improve the recovery and tackle unemployment. The six sectors involve housing rehabilitation, business stimulus, small and medium business support, greater safeguards for citizens and consumers, improvements in the energy sector, and strengthening of the financial sector.

A brief categorised summary of each of the 26 measures is as follows:

Housing rehabilitation

1. Income tax deduction for improvement works on primary residences. Specifically, work, carried out until December the 31st 2012 that improves energy efficiency, information technology or accessibility, will be given a tax deduction of up to 10% of the investment for lower income taxpayers (up to 33,007 euros per year), with a limit of 4,000 per year per household. Additionally, any excess amounts can be deducted over the next four years up to a maximum of 12,000 euros. The tax deduction available will gradually decrease for taxpayers with incomes over 33,007 and up to 53007.20 euros per year.
2. Reduced VAT for all types of home improvement work, including structural rehabilitation, with the reduced rate applying to work performed up to December the 31st 2012 and extending the maximum cost of materials up to 33% of the total work cost.

Business stimulus

1. Relaxation of the requirements to recover VAT on unpaid invoices.
2. For SMEs, a reduction from 1 year to 6 months in the time to recover VAT on unpaid invoices.
3. An extension to 2011-12 for the release of depreciation.
4. To allow companies to voluntarily maintain public subsidies and contracts with the government, under certain conditions.
5. CESCE is empowered to provide greater coverage to guarantee payment of business transactions.
6. Extension of the rules of valuation for development land.
7. Seasonal reduction of airport charges and the commitment to reduce shipping costs.
8. A further ten cabinet ministers will help coordinate the preparation of the Comprehensive Industrial Plan Policy 2020. This plan will contain the outlines of a new industrial policy aimed at increasing the share of industry in GDP, adapting to new challenges and opportunities in the economic environment and to ensure its contribution to the recovery and employment growth.

Support for small and medium businesses

1. Mandate for the launch of ICO (Official Credit Institute) Direct, a direct lending facility to the self-employed and SMEs. The ICO granted loans are available up to 200,000 euros, and assume 100% of the risk of the venture.
2. Strengthening of the cooperation with mutual guarantee companies, through shared collateral and guarantees.
3. Extension of risk cover in ICO-Liquidez services, to facilitate access to finance for small and medium enterprises.
4. Extension of financial support to developers of VPO (subsidised housing) when it is intended for sale, and not only for rentals, as is the case today.
5. Simplification of an SMEs obligation to document the transactions to small sized companies, except those performed in tax havens.
6. To allow funds raised by asset backed security funds (FTPYME) to be used to finance working capital needs.

Greater safeguards for citizens and consumers

1. Increase in the indefeasible amount in cases of foreclosure. The new ceiling is set at 110% of minimum wage and increases 20% for each additional household member without an income.
2. Establishment of a super-reduced rate of VAT (4%) for dependency services. This will affect all services in the care system that are the subject to collaboration between the public and private enterprise, so that it encompasses all integrated companies within the public care system, including residential places, home care, tele-care and day or night centres.
3. Exemption from income tax, with a limit of 1,500 euros, on amounts paid by companies for workers to travel by public transport.
4. Better protection for investors in securities offerings.

Improvements in the energy sector

1. Stimulus packages to the development sector of energy service companies.
2. Introduction of charge management posts, to facilitate the development of electric vehicles.
3. To ensure the existence of a funding mechanism for possible temporary imbalances in liquidation with regard to electricity bills.

Strengthening the financial sector

1. Clarifying the rules applicable to corporate protection systems (SIP).
2. Speeding up the actions of FROB (Bank restructuring funds).
3. To enable asset securitization funds to be in active possession of property.

Related Posts

• S&P: Spain Is Over The Worst Of The Crisis
• Spanish Fraud Prevention and Correction Plan
• 6,000 Euro Subsidy for Electric Vehicles in Spain

Tags

• airport  ban  business  care  charge  crisis  developer  electric  electricity  employment  environment  eu  finance  government  growth  havens  house  housing  investment  loans  payment  post  power  Property  recovery  rent  rentals  security  spanish  speeding  Sport  support  tax  time  trial  unemployment  VAT  vehicles  veil  work