COVID line of direct aid to the self-employed and companies in the Community of Madrid

On 28 April 2021, by means of an Agreement of the Governing Council of the Community of Madrid, the call for direct aid to the self-employed and companies was approved within the framework of the measures to support the solvency of companies, in response to the COVID-19 pandemic provided for in Royal Decree-Law 5/2024 of 12 March

Under this agreement, the Community of Madrid will allocate an amount of 679,287,790 euros for the “COVID line of direct aid to the self-employed and companies” financed by the Spanish Government, and an additional amount of 220,000,000 euros financed by the Community itself.

This aid has a finalist nature and the applicants will have to use it to satisfy the debt and payments to suppliers and other financial and non-financial creditors, as well as the fixed costs incurred, provided that these have been accrued between 1 March 2020 and 31 May 2021 and come from contracts prior to 13 March 2021.

Eligible entrepreneurs and/or professionalsmay benefit from this aid if:

1. have their tax domicile in the Community of Madrid,
2. which carry out an economic activity as defined in the Annex V to the Agreement of the Governing Council of 28 April 2021
3. who are in one of the following situations:
   • That their annual volume of operations (figures declared in the VAT model) has fallen by more than 30% with respect to 2019.
   • That they apply the objective estimation regime for personal income tax.

Excluded are those entrepreneurs or professionals who, in the Personal Income Tax return corresponding to 2019, have declared a negative net result for the economic activities in which they had applied the direct estimation method or, where applicable, the taxable base for Corporate Income Tax or Non-Resident Income Tax, before the application of the capitalisation reserve and compensation of negative taxable rules, has been negative in said financial year. Financial companies are also excluded.

The amount of aid is determined according to the type of beneficiary:

1. In the case of entrepreneurs or professionals who apply the objective estimation regime in Personal Income Tax, the maximum aid will be 3,000 euros.
2. For those entrepreneurs and professionals whose declared annual turnover (in Value Added Tax or equivalent indirect taxation) has fallen by more than 30 % in 2020 compared to 2019, the maximum aid to be granted will be:
   • 40 % of the drop in the volume of operations in 2020 compared to 2019 that exceeds 30 %, in the case of entrepreneurs or professionals who apply the direct estimation regime in Personal Income Tax, as well as entities and permanent establishments with a maximum of 10 employees.
   • 20% of the drop in the volume of operations in 2020 with respect to 2019 that exceeds 30%, in the case of entities and entrepreneurs or professionals and permanent establishments that have more than 10 employees.

In any case, the maximum aid may not exceed EUR 200,000.

The deadline for submitting applications is 30 June 2021. And given that this aid will be granted to those applicants who meet the requirements of the call for applications in order of receipt of applications until the funds are exhausted, those self-employed and/or companies that could benefit from the same should speed up their processing.

You can find all the information on the COVID line of direct aid to the self-employed and companies at: Línea COVID de ayudas directas a autónomos y empresas | Community of Madrid

If you are interested, AddVANTE is at your disposal to process the applications and advise you on the process, as well as the subsequent preparation of the justification report.