Government aid to face the coronavirus crisis

Minicréditos sin intereses para el alquiler durante pandemia coronavirus

The Spanish government proposes a series of rental subsidies for citizens with difficulties to face this expense during and / or because of the coronavirus pandemic.

Among these grants is the government's endorsement so that tenants with difficulties can apply for interest-free mini loans to be repaid in up to 6 years .

We will further explain these government measures to assist tenants and landlords.

After half a month with the Spanish economy low, cuts and temporary employment regulation files (ERTE) due to the welfare emergency facing the nation, there are many people who cannot pay the rent of their home. The Government, through a royal decree-law, has backed a set of measures to help limit the monetary and social effect of Covid-19 generated by the new coronavirus.

What help can I request?

If you can prove that you cannot pay the rent, or it would be too difficult for you, these are the aids you can benefit from:

  • Suspension of evictions, all evictions are suspended until 6 months after the end of the state of alarm.
  • Line of Guarantees and mini-credits without interest or additional expenses approved by the Government together with the ICO, these credits without questions may be returned for 6 years, extendable up to 10 years. These mini-loans without questions must be fully dedicated to the payment of the rent and up to a maximum of 6 monthly payments. If even with this help it is not possible to meet the payment of the rent, the State will provide direct aid to pay off the debt that can amount up to 9,000 euros per month.
  • Aid program to be incorporated into the 2018-2021 State Housing Plan with support from the ICO. This help will be up to 900 euros per month and up to 100% of the income or 100% of the loan without payroll that has been requested.
  • Differentiation between small and large owners, small owners will receive the full rent of their home, while large owners will be able to choose between reducing the tenant debt to 50% or reorganizing it in 3 years.
    • In case of the reduction, it will be during the state of alarm generated by the pandemic and the following monthly payments up to a maximum of 4 months.
    • In the event of restructuring the rent, the installments will be divided for at least 3 years, without interest or penalties for the tenant.

Who can apply for these grants?

The aid program approved in recent days by the Executive will not be available to everyone, only people who are in a situation of economic and social helplessness due to the welfare crisis caused by Covid-19.

In order to obtain rental assistance, the occupant must meet all the requirements that are detailed below.

All unemployed people, who have had to reduce their working hours, are in an ERTE, or any other circumstance that due to the crisis have suffered a substantial decrease in their monthly income, can opt for these aid and interest-free mini-credits , including freelancers .

Requirements to access these grants

These are the requirements that the family must meet during the month prior to the application:

  • Do not exceed in income the limit of 3 times the IPREM (Public Indicator of Multiple Effects per month, which is set at 537.84 euros per month. This means that a family without children would have to charge a maximum of 1,613.52 euros per month that they are 19,362.23 euros per year in 12 payments or 22,589.28 in 14 payments.
  • This limit will be increased by 0.1 for each child or person over 65 years of age dependent on the applicant or the family unit. What will set the income through gross salary at 1,774.87 euros with one more member in these conditions or 1,936.22 if they are 2 members.
  • In the case of families with only one parent, the increase will be set at 0.15 for each dependent member.
  • If any of the family members has a declared disability of more than 33%, dependency or illness, the limit will rise to 4 times the IPREM, reaching 2,151.36 euros per month. Cumulative with the factors of children or elders in charge of the applicant.
  • If the applicant is a person with cerebral palsy, mental illness or intellectual disability with a recognized degree equal to or greater than 33%, the limit will be increased up to 5 times the IPREM. The same case if the disability is physical or sensory declared equal to or greater than 65% in addition to cases due to serious illness.
  • The rent plus expenses for basic supplies must represent at least 35% of the income of the family unit.

If you are a homeowner, you will not be able to access these grants.

Documents needed to access the grants

If you meet the necessary requirements to access the aid, these are the documents that you must present to prove that you meet these requirements:

  • If you are unemployed, you must present a certificate stating the monthly amount you receive as unemployment benefit or subsidy. This document is provided by the entity that manages the benefits.
  • Cessation of activity of self-employed workers (Self-Employed), in this case you must present a certificate issued by the State Tax Administration Agency or equivalent body of your Autonomous Community.
  • You will need to present the family book, certificate of the people who are registered in the house, in addition to the declaration of disability, dependency, or permanent disability according to each case.
  • Ownership of assets through a simple note of indices from the Property Registry of all members registered in the home, thus proving that they do not own any home.

It is important to note that according to royal decree-law, tenants who cannot provide any of the documents that prove their unemployment or home ownership status can submit a responsible statement that justifies the reasons for not obtaining these documents, related to the COVID-19 crisis. Once the state of alarm and its extensions have ended, they will have one month to present the documents.

Presentation of documents

You can see the instructions to obtain this certificate with which you accredit your conditions in the State Public Employment Service or SEPE:

  1. You must go to the Electronic Office of the SEPE and select "Obtain a certificate about your service"
  2. Then choose the option "Current performance certificate"

If you have difficulties obtaining these documents online, according to the SEPE the request must be made by phone and you will receive the certificates by ordinary mail.

How to apply for the interest-free mini-credit for rental assistance?

If the tenant needs to apply for the mini-loan for rental assistance without expenses or interest, they must present the required documentation that we have explained above to the lender. This loan will be destined in its entirety to the payment of the rent, at no time will the borrower be able to have the money from the loan for other purposes.

You can consult the Royal Decree-Law 11/2020 of March 31 in the BOE