New Economic Measures by Spanish Government

Yesterday the Spanish Government announced the following measures in an attempt to ‘hibernate’ the economy:

· For private tenants, evictions are suspended for up to 6 months after the end of the state of alarm – nobody can be evicted from their home

· Rental contracts that are due to expire are automatically extended for a further 6 months.

· Loan scheme put in place at 0% interest to people who need help paying their rent – to be paid back over 6 to 10 years.

· Landlords who have multiple properties (as opposed to families and individuals who rent 2nd or 3rd homes) have to cut their rents by 50% or restructure them – Note: This won’t apply to the majority of rentals in Ibiza

· Mortgage holiday for those affected by the crisis – see your bank for more details

· Delayed payment on mortgages for commercial premises/offices for the self-employed

· Utilities such as water, electricity and gas are guaranteed during this exceptional period – nobody will be cut off

· Suspension of repayments of consumer loans for anyone who is in a vulnerable economic situation – this will last 3 months and can be extended if necessary.

· Self-employed can suspend social security payments for a period of up to 6 months without interest being accrued – but this still has to be paid.

· Any outstanding payments to social security can also be delayed for 6 months

· Those who have had temporary contracts terminated are entitled to emergency funds of €440 as well as aid to cleaners who lose their jobs and have reduced work hours due to the crisis. Please speak to SOIB to see if you qualify for this one-off payment.

· Suggestion: If you are a private tenant then speak directly to your landlord who will be fully aware of the situation. If you have financial hardship then try and negotiate a reduced rent during the crisis, something is better than nothing and they can’t evict you by law for 6 months until after the state of alarm has finished.

· Try and pay only essential bills, all utilities payments can be put off in the short term but need to be paid at some point in the future.

· If you are self employed then speak to your Gestoria or Financial advisor to find the best way to minimise your outgoings during the crisis.

· Opinion: Unfortunately there is no magic wand and these measures don’t go nearly far enough for many of us in Ibiza where normal rules don’t apply due to the almost total reliance on a short tourist season which has been decimated in the short term by decisions from airlines and governments that are outside of our control. Let’s hope more measures are introduced quickly but in the meantime make sure you have a good line of communication with your employer, landlord, bank, gestoria/financial advisor to minimise the impact in the short term.

· If you live in Ibiza or Formentera and are experiencing extreme financial hardship due to the Covid19 crisis then please contact social services at your local Town Hall or the Island Council (Consell Insular).

San Antonio: 971 340003
San Jose: 971 800125
Santa Eulalia : 971 332800 ext. 503
Ibiza Town:
Figueretas: 971 394891
L’Eixample: 971 310601
La Marina: 971 313219
San Juan: 971 333362
Formentera: 971 321271
Island Council: 971 195900

· The situation is evolving every day however the message is very clear – please stay at home and keep a cool and calm head. By following these guidelines, together, we will beat this disease and get on with the rest of our lives.

Best Regards – Stay Safe and Stay Home

With special thanks to Lesley Donald, Tricia Templeton and Julian Cobby

VERY IMPORTANT: INFORMATION TAKEN FROM CREDIBLE PRESS AND GOVERNMENT SOURCES HOWEVER THE SITUATION IS CHANGING VERY QUICKLY. THIS BLOG IS WRITTEN FOR INFORMATION PURPOSES ONLY AND I TAKE NO RESPONSIBILITY FOR ANY ERRORS GIVEN IN GOOD FAITH

Author: Martin Makepeace

Englishman living and working in Ibiza since 1991. Entrepreneur with a passion for villas, boats, sunsets and San Antonio. Read my blogs, listen to my podcasts and catch me on Radio One Mallorca every Tuesday morning.

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