Archivo de la categoría: International (English)

The Second Chance Law in eight questions and their answers

The Second Chance Law offers a new opportunity to all those people, whether they are salaried employees, civil servants or even SELF-EMPLOYED, who have a present or imminent debt that they are unable to pay. It is a solution that offers you the opportunity to totally cancel your debts. It is a specific insolvency mechanism for individuals.

Who is it intended for?

It is intended for any natural person. Whether they are salaried employees, civil servants or SELF-EMPLOYED.

What are the requirements?

The current requirements, although they will probably be relaxed with the new reform of the Insolvency Law, are the following:

1- Your debt does not exceed five million euros.

2- That there is good faith on the part of the debtor.

3- Demonstrate that you do not have assets to meet the debts or that these have already been liquidated.

4- To have at least two different creditors.

5- Not to have been benefited by this Law in the last 10 years from the sentence.

6- That you have not been declared guilty in another insolvency proceeding previously.

7- Not to have a criminal record in terms of: Against the patrimony, against the socio-economic order, the public treasury, the social security, documentary falseness, nor against the rights of the workers.

8- Not having rejected a job offer suitable to your abilities during the 4 years prior to the application for the Second Chance.

What are the benefits that you can obtain thanks to this law?

You will be able to apply for financing again, you will disappear from the delinquency lists, you will be able to have credit cards again and start a new life.

What does this procedure consist of?

It consists of two phases. Initially, an out-of-court phase is carried out in which an attempt is made to reach a payment agreement with the creditors. This phase may not last more than two months as established by Law.

If the two months have elapsed without an agreement, the judicial phase, the consecutive insolvency proceeding, will begin. During this phase, the Judge may exonerate 100% of the debt.

Can any person be eligible, regardless of his or her salary?

Yes, anyone can apply. Whether you are self-employed or salaried. The only thing that must be taken into account is that the debt does not exceed five million euros. However, the law does not establish the legal minimum to be able to apply for the Second Chance.

Are the debts eliminated forever?

The debts will effectively disappear when five years have elapsed since the sentence.  During this period, they will not have to be paid, but this is the period that is stipulated so that the case can be reviewed, if the creditors request it. They could do so, for example, if it is suspected that the debtor has not acted in good faith.

As far as the future is concerned, a person who has already benefited from the Second Chance Law could do so again in the future, provided that the insolvency proceeding is not requested within 10 years.

What will be affected by the draft reform of the bankruptcy law approved last month by the Council of Ministers?

It intends to reform in depth the second chance procedure with the aim of encouraging the beneficiaries to continue with their work or business activity and making possible a really effective second chance.

It highlights the possibility of exoneration without prior liquidation of the debtor’s assets and with a payment plan to creditors, allowing the debtor, under certain conditions, to keep his habitual residence and, if he/she is self-employed, to continue with his activity.

The payment plan will have a maximum duration of three years, which will be extended to five years when the debtor’s habitual residence is not disposed of.

The list of exonerable debts is extended and certain restrictions to be able to access the exonerations are eliminated or relaxed.

Therefore, as soon as it enters into force, the conditions to access the second opportunity will be more flexible and the probabilities of debt cancellation will be higher.

Why are we Moya&Emery the best to help you in this matter?

Currently we have achieved a 100% success rate in all our cases. Therefore, we encourage all those people who are in a situation of current or imminent insolvency to visit us and we will study their case without obligation.


Spanish labour reform adopted by the Council of Ministers

Already published in the Official State Gazette, the new Royal Decree-Law will develop changes in temporary contracts, subcontracting, ERTEs, collective bargaining and training contracts.

Click here to download a Labour Ministry press release (Spanish version).

We highlight the following aspects of the new regulation:

Temporary contracts

The contract for work or service disappears. Contracts are presumed to be for an indefinite period and, therefore, the types of contracts available are reduced.

The causes of temporary contracts are unified in two cases:

  1. Due to circumstances of production: this is due to productive causes, or It has a maximum duration of 6 months, extendable to 1 year if so established in the sectoral agreement, or If the contract is due to foreseeable production circumstances, the maximum duration of the contract is 90 days in the calendar year.
  2. By substitution: this is due to causes of substitution of the worker. This cause responds to a need for internal coverage of the company. The duration may not exceed 3 months (non-renewable). A shorter period may be fixed if the collective agreement so stipulates. This fixed-term contract is used to replace people during a suspension of the contract with job reservation, to cover the reduced working hours due to legal or conventional reasons, as well as to cover vacancies during a selection process.

Therefore, the fixed-term employment contract may only be concluded due to circumstances of production or for the replacement of a worker.

Prevalence of the permanent contract generally. The indefinite-term contract will be the ordinary contract. Six months, extendable to one year. Reduction in the chaining of contracts to consider a person as permanent: from 24 to 18 months.

A fixed-amount penalty is introduced for each leave on a temporary contract, so that the penalty that has existed until now, which was linear, is replaced by one that introduces a greater disincentive the shorter the contracts are. Temporary contracts of less than 30 days will have an additional Social Security contribution of 26 euros when they are terminated. This also means an increasing penalty (the shorter contracts, the greater the disincentive: with a short contract of 10 days, the penalty would be 26 euros; if the same working time were covered by two five-day contracts, 52 euros…).

Exceptionally, this contribution will not be applied to the special regimes for agricultural workers, domestic workers, coal mining workers, nor to substitution contracts.

Discontinuous fixed-term contracts will be promoted for seasonal work or seasonal productive activities, as well as those which are not of this nature but which, being intermittent, have certain, determined, or indeterminate periods of performance.

Workers subject to this type of contract shall be a preferential group for training actions. Sectoral agreements may establish employment exchanges to favour their recruitment and to improve their training during periods of inactivity.

Special case: In the construction sector, ordinary contracts will also be open-ended contracts. After the end of the work, the company must offer a relocation proposal to the worker, subject to the development, if necessary, of a training process at the company’s expense. If the worker rejects the offer or for reasons inherent to the offer that make relocation impossible because there is no suitable position, the contract is terminated, with compensation of 7% calculated on the salary concepts established in the collective bargaining agreement tables. Both the end of the work and the termination must be communicated to the legal representatives of the workers.

Collective agreements

Prevalence of the sectoral agreement except in the regulation of wages. It is maintained that wages may not be lower than those established in the sectoral agreement, referring both to the amount of the basic wage and the wage supplements, including those linked to the company’s situation and results, where the higher-level agreement prevails.

Indefinite ultra-activity, the agreement remains in force until a new one is signed, even after its express validity has expired

If after one year of its denunciation without agreement, i.e. after the negotiation process has elapsed without an agreement being reached, the collective agreement will remain in force.

Training. Two types of contracts: Training contract in alternating work and dual training contract.

Training contract alternating work and training. With the aim of acquiring the appropriate professional competence corresponding to a certain level of studies (vocational training, university, or catalogue of professional qualifications of the National Employment System).

They may be arranged with people of any age except in the case of the Catalogue of Professional Qualifications, with a limit of up to 30 years of age and will have a maximum duration of two years.

The working hours will be no more than 65% in the first year and 85% in the second year, with no overtime, shift work or night work. Remuneration will be adapted to the agreement and may not fall below 60% (the first year and 75% the second year). It will never be less than the minimum wage proportional to the working day.

A tutor with the appropriate training will oversee monitoring and ensuring compliance with the individual training plan designed for each person and the correct fulfilment of the contract.

Dual training contract is limited from 6 months to 12 months and will be allowed to be used only during the 3 years following the end of the studies.

The specific needs of people wiht disabilities are also considered.

Contracts for professional practice may be concluded up to a maximum of three (or five years in the case of persons with disabilities) after certification. They will last between six months and one year.

Both will be covered by the Social Security protective action, which will include the protectable contingencies and benefits, including unemployment and the coverage of the Wage Guarantee Fund.

Curricular or extracurricular internships will not be an employment relationship but will still be obliged to pay contributions.

Subcontracting

Contracts and subcontracts must comply with the corresponding sector agreement according to the activity they carry out.

The sectoral collective bargaining agreement applicable to contracting companies will be that of the activity carried out unless there is another applicable sectoral agreement. The sectoral agreement of the activity carried out in the main company or another one may be applied if so, determined by the sectoral collective bargaining agreement within its general rules.

When the contractor or subcontractor company has its own agreement, this will be applied in the terms resulting from article 84 of the Workers’ Statute.

ERTE

A special mechanism like the ERTE COVID-19, force majeure due to limitations and impediments, is included.

The RED Mechanism, these new ERTEs will be activated by the Council of Ministers and companies will be able to take advantage of them after consultation with the workers’ legal representatives and will be able to make collective applications through the SEPE’s electronic headquarters. They will have a maximum duration of 1 year (in the event of a crisis in the sector they will be extended to 2 years).

Unemployment. They will receive 70% of the regulatory base during the process (without grace period or unemployment consumption up to a maximum of 225% of the IPREM.

Social Security bonuses of between 20% and 90% linked to training.

Exemptions are established for ERTE, Force Majeure and ETOP linked to training and a commitment to maintain employment:

  • 20% ERTE ETOP
  • 90% ERTE Temporary Force Majeure
  • 90% ERTE Impediment or Limitation.

There are two modalities:

1. Cyclical network mechanism:

It will provide companies with a stable framework in the face of a transitory or cyclical fall in demand due to macroeconomic causes, in order to avoid dismissals, companies will be able to suspend part of their workers for a maximum period of one year instead of dismissing them. During this period of suspension, incentives will be provided for the training of workers and the following exemptions from Social Security contributions are established:

  • 60% in the first four months of activation.
  • 30% in the immediately following four-month period
  • 20% in the following four months

2. Sectoral network mechanism:

The most representative trade union and employers’ organizations may request the convening of the Tripartite Commission of the RED Mechanism to be accompanied by a retraining plan. This modality provides support for the re-qualification of workers in companies and sectors in transition that require permanent changes. The company can activate this mechanism for a maximum period of one year (six months, with the possibility of extending for a further six months) and facilitate the transfer of its workers to another company through their re-qualification. It has a 40% exemption (linked to training actions).

The company from which the workers leave must carry out an outplacement plan, including training activities that allow the workers to be relocated in another company, and pay the full amount equivalent to their wages for the first month in which the suspension or reduction of working hours is applied.

The indefinite (or permanent-discontinuous) hiring by the receiving company would produce a rebate of social security contributions for common contingencies during a certain period.

Outplacement must be accepted voluntarily by the worker.

The management of the RED Fund will be the responsibility of the SEPE and will be financed from the income from social security contributions for unemployment, from the contributions included in the General State Budget and from resources from European Union financing instruments.

The text of this Royal Decree-Law also fulfils the commitment made to the European Union in Component 23 and lays the foundations in labor matters for a fair and inclusive recovery within the Recovery, Transformation and Resilience Plan.


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Important information for British citizens who wish to enter Spain

The Embassy of Spain to the United Kingdom would like to clarify that UK nationals who were legally residing in Spain before 1 January 2021, and as such are beneficiaries of the Withdrawal Agreement, can prove their residence status when entering Spain while entry restrictions remain in place by presenting any one of the following documents:

  • Residence card issued under Article 18.4 of the Withdrawal Agreement (the TIE) – ‘la tarjeta de identidad de extranjero (TIE)’.​
  • Temporary or permanent EU residence certificate (green certificate) – ‘el certificado de registro de ciudadano de la Unión’ (tarjeta verde).​
  • Residence card as a family member of an EU citizen – ‘la tarjeta de familiar de ciudadano de la Unión’.​​
  • Receipt of application to exchange an EU residence certificate (green certificate) or residence card as a family member of an EU citizen for the new TIE (residence card issued under Article 18.4 of the Withdrawal Agreement) – ‘el resguardo de expedición de la tarjeta de identidad de extranjero (TIE) o de la tarjeta de familiar de ciudadano de la Unión’.
  • Confirmation of the positive outcome of your residence application from the Immigration Office – ‘la resolución favorable de reconocimiento como beneficiario del Acuerdo de Retirada emitida por la Oficina de Extranjería competente’.

It is possible to request proof of beneficiary of the Withdrawal Agreement on line, through the Mercurio application:
https://sede.administracionespublicas.gob.es/mercurio/inicioMercurio.html


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Pide cita previa en Moya & Emery para presentar tu declaración del impuesto sobre la renta – Campaña de la Renta 2020

Moya & Emery te ayuda a presentar tu declaración de la renta 2020. Es fácil: sólo tienes que concertar cita previa con nosotros y eso puedes hacerlo a través de:

  • whatsapp (escanea el código qr o sigue este enlace en tu móvil)
  • teléfono en el 971 728 010 (oficina de Palma) o en el 971 132 359 (oficina de Palmanova – Calvià)
  • correo electrónico en info@moyaemery.com

Desde 30 € podrás disfrutar de nuestro servicio para presentar tu renta, ahora también de forma telemática, que incluye la descarga de tus datos fiscales, la comprobación de su exactitud y la presentación de declaración en plazo voluntario. (* se excluyen las rentas con actividades profesionales *).

Y apunta las siguientes fechas de la campaña de la renta 2020 en tu calendario:



#moyaemery​ #asesores​ #abogados​ #campaña​ #irpf​ #impuestos​ #renta​ #renta2020​ #obligados​ #pagadores​ #trabajadores​ #ERTE​ #cesedeactividad​ #reinversión #deducciones​ #ingresomínimo​ #palma​ #calvià #cita #citaprevia

Reminder to United Kingdom nationals travelling to the European Union and Schengen area member states

United Kingdom nationals travelling to the European Union and Schengen Area Member States are already going through a lot of changes, including additional checks at ports of entry, and even entry restrictions which have been imposed on third countries amid COVID-19.

Frequent travellers to the block and the borderless zone will soon face another struggle – a limited period of permitted stay within the block.

Under the Schengen Area rules of stay for third-country citizens, non-EU citizens entering the territory under the visa-free regime can stay for a maximum of 90 days, for every 180 days.

Those who overstay this period – intentionally or unintentionally – may face penalties, including deportation and entry bans.

90/180 DAYS-OF-STAY RULE EXPLAINED

The 90/180 days rule may be confusing to many, in particular for Britons, who so far did not have to worry about how long they were staying in another EU or Schengen associated country.

Every third-country citizen travelling to the Schengen Area under the visa-free entry regime is permitted to stay for a period of a total of 90 days, in any 180 days.

The 180-day period keeps rolling, thus, anytime a traveller wishes to enter the Schengen zone, he/she just have to count backwards the last 180 days, and see if they have been present in the Schengen Zone for more than 90 days throughout that period.

Often, travellers are confused by this rule and fail to calculate how long they are permitted to remain in the EU, or they believe that overstaying is not a big deal. Yet, overstaying has its consequences, which often may be quite harsh.

Check the EU Period of Stay Calculator for British Citizens to find out how long you can stay in the EU.

WHAT CONSEQUENCES WILL BRITONS FACE FOR OVERSTAYING IN EU?

The consequences that a British national may face for staying in the EU longer than permitted depend a lot on the country where he/she is caught overstaying, as well as the number of days overstayed.

Since there is no common policy for penalties for overstayers, the Member States may apply the penalties differently, some by being softer and other harsher, like for example Germany.

Despite their differences, in general, the Member States apply the following penalties on those caught overstaying, including on Britons staring from this year:

  • Deportation – All third-country citizens caught overstaying the number of permitted days of stay in the EU are immediately forced to leave the block. Some of the countries will imprison overstayers and deport them by themselves, while others will give overstayers a certain period of hours or days to leave.
  • Fines – One of the most common penalties for overstaying in the Schengen Area is being fined with an amount of money, though the fees vary from one country to another. Fines are applied alongside with deportation and are not a substitute for it. They may often be followed with an entry ban too.
  • Difficulties in returning to the Schengen – Almost every deported person will face difficulties to travel back to the Schengen Area. They will face prolonged border checks upon entry and may even be turned back or banned from entering for a certain period.
  • Entry ban – Usually the Member States ban from entering only those who have overstayed for a longer period. Bans are applied for a period of three years or even more.

Despite the consequences listed above, some travellers may not be subject to any of them, in particular those who cannot travel for a strong reason that can be proved.


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Moya & Emery training sessions for First Mallorca real estate

A few days ago, Neus Lafuente, from Moya & Emery, finished one of the periodic training sessions carried out for the staff of the FIRST MALLORCA real estate agency. In this case, the training was directed to Rentals department. An analysis was carried out of the modification of LAW 29/1994 OF NOVEMBER 24 ON URBAN LEASING (LAU) carried out on March 5, 2019, which entered into force on March 6, 2019. A modification that affects the terms and extensions of the rental contracts, the right to terminate the contract, the increase in rent because of improvements, the expenses of the parties and the bond.

Specifically, references were also made to the following aspects:

• Modification of the terms and extensions of the contracts: Currently it is 5 years in natural persons, 7 in legal persons; extendable annually for 3 more years. If the time is not stipulated in the contract, it is understood that it is 1 year, and the minimum time without compensation that the tenant is is 6 months, from there with an anticipation of 30 days he can withdraw from it;
• Rights and obligations of both parties to the rental contract.
• Of the rent, the guarantee and the deposit: their legal maximums and the differences between these concepts;
• The legally established distribution of expenses;
• The most common abusive terms that can be found in a lease contract;
• The minimum and mandatory requirements that must appear in a lease contract;
• On express evictions and the suspension of evictions until May 9, 2021 because of Coronavirus new regulations
• Taxation of rental contracts.


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Will British nationals only be allowed to acquire real estate in the Balearics under military permit?

Real estate investments by British in the Balearics after Brexit

Since the United Kingdom left the European Union, the media filled their front pages with the following headline: The British will only be allowed to acquire property in the Balearics under military permit.

Although the abovementioned statement is true, it is not accurate. Pursuant to the Spanish Law 8/1975, of 12 March 1975, on areas and facilities of interest to the National Defence (hereinafter, the “Law”), in order to safeguard the interests of the National Defence and the security and effectiveness of its organisations and facilities, there are certain areas to which non-EU foreigners have restricted access to ownership.

The regulation implementing this law defines these areas as: islands, Cartagena, the Strait of Gibraltar, the Bay of Cadiz, the border area with Portugal, Galicia, the border area with France and the Spanish territories of North Africa.

In accordance with the Law and its implementing regulation, non-EU foreigners willing to acquire real estate in the areas described below are subject to the requirement of military authorisation. In addition, military authorisation will be required for Spanish companies when their share capital is owned by foreign individuals or legal entities in a proportion of more than 50 per cent, or when, even if this is not the case, the non-EU foreign shareholders have a situation of dominance or prevalence in the company, derived from any circumstance that makes it possible to prove the existence of a decisive influence by them in the management of the company.

Therefore, and contrarily to what might be thought, this restriction cannot be circumvented by the mere incorporation of one or more Spanish and/or foreign companies when their ultimate beneficial owners are, de facto, British.

As per the military authorisation, the applications for the acquisition of estates not exceeding 2,000 square metres in area, their granting will fall to the relevant General Captaincy; however, when it comes to estates exceeding 2,000 square metres in area, the application must be addressed to and will be processed by the Ministry of Defence.

In any case, it should be noted that both regulations provide for an exception to the above restriction. Military authorisation will not be required in the area occupied by existing urban centres or their existing built-up or expansion areas.

Hence, although this restriction affects the whole of the Balearic Islands (Mallorca, Menorca, Ibiza and Formentera), an exception is made, and therefore military authorisation will not be required, when non-EU foreigners acquire property in urban centres and built-up areas. In other words, the permit will only be required when British nationals intend to acquire property on rural land.

At this point, it is convenient to highlight the residence status in Spain that applies to them after the Brexit. Unless they apply for temporary or, where appropriate, permanent residence, British nationals must comply with the entry requirements established in the Schengen Borders Code, which allows them to stay in Spain for 90 days per 180-day period, either on one or several visits, and in which case they must identify themselves with their passport and will be exempt from visa requirements.

As an alternative, a few years ago the Spanish government introduced a special visa to attract foreign investment, which is commonly known as “Golden Visa”. Thus, the Golden Visa is a type of residence visa, suitable for non-EU citizens who undertake a real estate investment in Spain equal to or greater than € 500,000 free of charges or encumbrances, i.e. without mortgaging the property to be acquired. This visa allows both residing and working in Spain and has an initial duration of two years, which can be extended for another two. Moreover, it is possible to extend the visa to the spouse and children under 18 years of age, or children of full age who are objectively incapable of providing for their own needs.

Notwithstanding the above, British nationals may apply for temporary or permanent residence in Spain through the standard procedure. However, it should be borne in mind that, if so, their tax status would be affected, as they would be considered tax residents in Spain and, consequently, would be taxed on certain income in that country. Nevertheless, it should be noted that during their first years of residence in Spain they could benefit from the tax regulations known as the “Beckham Law”, which allows foreigners who move to Spain to be taxed as non-residents for a certain limited number of years.

Anyway, and going back to the subject matter, it is likely that the above-mentioned military regulation applies only for a limited period of time. Currently, citizens of countries that do not belong to the European Union but belong to the countries of the Single European Space or assimilated (Schengen Area), i.e. Iceland, Norway and Switzerland, are fully equated to nationals of EU countries and, accordingly, exempt from the need for military authorisation. It is therefore to be hoped that, in the not-too-distant future, the Spanish government will extend this status to the British and this obsolete regime of restricted access can be forgotten, at least as far as the British are concerned.

Marta Marina

Lawyer specializaing in commercial law and real estate law


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About property purchasing in Majorca by British after Brexit

Few days ago we could read in the papers, here in Majorca, some headlines like this one:

British will only be able to purchase properties (in Spain) with a military authorisation

Unfortunately, the provided information is not accurate and Moya & Emery wants to clarify that the mentioned military authorization is not required if a British wants to purchase an urban property (flats, villas, etc.) according to section 35.1 of the Royal Decree 689/1978.

We recommend you to get legal advice before purchasing a property to avoid any problem. For sure, as it is one of our finest expertises, you can choose our legal firm in case you need.


#moyaemery #lawyers #solicitors #majorca #mallorca #balearics #baleares #property #properties #purchase #buy #Spain #British #Brexit

Self-employed: Deadline for waiver of the covid-associated stopped activity benefit ends 31 January 2021 and provisional rulings to be reviewed

SELF-EMPLOYED. DEADLINE FOR WAIVER OF THE COVID-ASSOCIATED STOPPED ACTIVITY BENEFIT ENDS 31 JANUARY 2021 (unless extensions are approved in the next few days).

Article 13 of Royal Decree-Law 30/2020, of 29 September on employment protection measures, anticipating possible breaches of the requirements for access to the benefit by the self-employed, established two aspects to be taken into account: the possibility for the interested party to renounce the benefit or its refund.

Thus, after setting a series of requirements such as being registered and up to date in the payment of contributions, not being entitled to the “ordinary” unemployment benefit, not having income from self-employed activity in the last quarter of the 2020 financial year that exceeds the minimum interprofessional wage, or suffering, in the fourth quarter of 2020, a reduction in income from self-employed activity of at least 50% in relation to the income in the first quarter of 2020; the regulation allows the self-employed who have applied for payment of the benefit to renounce it at any time, and to do so at the same time as the self-employed who have applied for payment of the benefit:

  • – To renounce it at any time before 31 January 2021, with the renunciation taking effect the month following its communication.
  • – To return the benefit for cessation of activity on their own initiative, without having to wait for a claim from the mutual society collaborating with the Social Security or the managing body, when they consider that the income received during the fourth quarter of 2020 or the drop in turnover in the same period will exceed the established thresholds with the corresponding loss of entitlement to the benefit.

SELF-EMPLOYED. FROM 1 MARCH 2021, ALL PROVISIONAL RULINGS WILL BE REVIEWED.

The mutual insurance companies are already reviewing whether the self-employed who have been receiving unemployment benefits since 2020 meet the requirements, they have verified or will verify this in different periods and could request the return of the benefits if they do not meet the requirements.

From 1 March 2021, article 13.2 of Royal Decree-Law 30/2020, of 29 September, empowers the mutual insurance companies collaborating with the Social Security, or the Social Marine Institute, as the competent bodies for the recognition of the benefit, to request from the Ministry of Finance the tax data corresponding to the year 2019 and 2020 of the self-employed workers who are granted this extraordinary benefit.

Once the data has been checked by the collaborating or managing entity competent to recognize the benefit, it will proceed to claim the benefits received by those self-employed workers who exceed the income limits established in this provision, or who do not accredit a reduction in turnover during the fourth quarter of 2020 of at least 75% in relation to the same period in 2019.

The competent entity for the claim will set the date for payment of the amounts claimed, which must be made without interest or surcharge. Once the deadline has passed, the General Treasury of the Social Security will proceed to claim the outstanding debt, with the appropriate surcharges and interest.

In this mutual insurance company verification form, the self-employed person must attach – as a general rule – the income and expenditure ledger that includes all the invoices corresponding to the months in which they received the benefit and which they must compare to verify the drop of 75% or more in turnover with respect to the six months prior to the state of alarm (from September 2019 to February 2020).

In any case, the documentation to be provided will be required by the form itself, once you have entered and chosen the parameters that identify your type of taxation. In the event that the interested party is not entitled to the benefit, the procedures for claiming the amounts unduly received will be initiated.

To this end, the aforementioned entities will issue a decision setting the amount to be reimbursed, which must be made without interest or surcharge within the period indicated in the notification to the interested party.

Once the period established in the decision has elapsed, the Social Security General Treasury will proceed to claim the outstanding debt, with the appropriate surcharges and interest in accordance with the administrative collection procedure established in Royal Decree 939/2005, of 29 July, which approves the General Collection Regulations.

The institution would require the self-employed to pay a minimum of 2,000 euros – corresponding to 661 euros per month for three months at 70% of the minimum contribution base – together with the exemptions from contributions for the same period of time, which would amount to around 800 euros – once again, in the case of paying the minimum contribution base.

The refund must be made at once and within a period of around 10 days.

Measures to adapt the UK to the situation of a third country following the end of the transitional period for Brexit

On 30 December last, following the agreement of the Council of Ministers, Royal Decree-Law 38/2020 of 29 December was published in the Official State Gazette (BOE) number 340, adopting measures to adapt the United Kingdom of Great Britain and Northern Ireland to the situation of a third country following the end of the transitional period provided for in the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community of 31 January 2020 (access to BOE regulations, here)

Chapter II of this RD-Law establishes the rules applicable to “Professional and Labour Relations” and is divided into 5 sections:

  • Section 1: “Professions and public service”, regulates access to and exercise of professions, and the rules applicable to access to and maintenance of the status of public employees of United Kingdom nationals in the service of Spanish public administrations.
  • Section 2: “Industrial relations” contains two articles, one on the transitional arrangements applicable to workers temporarily posted in the framework of the provision of services and the other on European Works Councils in Community-scale undertakings or Community-scale groups of undertakings.
  • Section 3: on the exercise of research and innovation activities in a single article, Article 8, which allows United Kingdom nationals, who on 31 December 2020 are exercising these activities in Spain, to continue to do so on the same terms as those under which they are recognized, subject to the application of the Spanish legislation in force, provided that reciprocal treatment is recognized for Spanish nationals by the competent United Kingdom authorities.
  • Section 4: “Social Security”, contains, in a single article, Article 9, the rules for determining the applicable legislation on the same terms as those established prior to the date of the United Kingdom’s withdrawal from the European Union. This will allow Spain to continue to apply these same rules to those persons who are subject to UK social security legislation, provided that the United Kingdom acts reciprocally in respect of those persons who are subject to security legislation Spanish social security system.
  • In Section 5, Article 10 regulates measures to enable United Kingdom nationals to access unemployment benefits for periods of contribution up to 31 December 2020 (end of the transitional period), in any Member State of the European Union including periods of contribution in the United Kingdom, provided that the last contributions were made in Spain and that the right of legal residence in Spain is maintained.

By way of summary, among the measures included in this RD-Law, we highlight the following:

  • Companies established in Spain which on 1 January 2021 had workers temporarily posted to the United Kingdom or Gibraltar must continue to apply the legislation of that country, which transposes Directive 96/71/EC of 16 December, during the period of posting and provided that reciprocal treatment is recognized.
  • Similarly, companies established in the United Kingdom or Gibraltar with workers posted to Spain before 31 December 2020 may remain in Spain from 1 January and continue to provide their services until 31 December. After that, in order to continue the activity, it will be necessary to apply for a residence and work permit.
  • European Union citizens who commute to Gibraltar for work will be eligible for unemployment benefits until 31 December 2022
  • Workers who were posted to provide services will not have to apply for residence and work permits from 1 January 2021 if the planned duration of the posting is not extended
  • Workers posted to Spain as from 1 January 2021 must obtain the visas and/or residence and work permits provided for in Spanish immigration law, without prejudice to the agreements and commitments that may be assumed in a possible agreement between the European Union and the United Kingdom.
  • Access to unemployment benefit or cessation of activity is allowed until 31 December 2022, for citizens of the European Union who travel daily to Gibraltar to work without having to make contributions in Spain last. As from 1 January 2021, provision is made for the reimbursement of benefits paid by Spain to be claimed from the United Kingdom authorities, once an international instrument establishing the mechanisms for collaboration in this area has been agreed.
  • For nationals of EU Member States, periods accredited in the UK social security system up to 31 December 2020 will be considered for the calculation of unemployment benefits or benefits for cessation of activity, when these contributions are made last in Spain and provided that the right to reside legally in Spain is maintained, in accordance with the regulations on the co-ordination of social security systems. UK citizens will have their periods of work in any EU Member State recognized until 31 December for the purpose of calculating their pensions when contributions are made last in Spain.
  • Persons receiving unemployment benefits in Spain who were authorized to export their entitlement before 1 January 2021 may continue to receive them until the end of the initial three-month period for which they were authorized to export.
  • European Works Councils or procedures for consulting workers which have been set up or agreed before 1 January 2021 will be maintained. This measure concerns European companies in which workers or companies from the United Kingdom participate and which have their management centralized in Spain.

From 1 January 2021, the relationship between the United Kingdom and the European Union is based on the “Trade and Co-operation Agreement” which is a major change for citizens, companies and administrations in the EU and the United Kingdom.

The content of this Agreement is divided into four main blocks: the first on Free Trade, which eliminates quotas and tariffs between the UK and the EU and establishes conditions of fair competition. The second establishes a framework for economic, social, environmental and fisheries cooperation which includes provisions to ensure energy and transport connectivity, as well as coordination in areas related to social security. The third regulates a partnership on internal security based on existing mechanisms such as Europol or Eurojust and includes provisions on the surrender of detainees, the fight against money laundering and the fight against the financing of terrorism. Finally, a fourth block establishes a common governance framework with governance underpinned by an institutional framework that includes an “Association Council”, co-chaired by a member of the European Commission and a representative of the British government at ministerial level, which will supervise the implementation of the Agreement and will be assisted by specialized committees and working groups.