Which SMEs and self-employed can ask for a rent moratorium

On April 23, Royal Decree Law 15/2020, of April 21, on complementary urgent measures to support the economy and employment, came into force, in which it is agreed, among other measures, a moratorium on the payment of the rent of commercial premises due to #COVID-19.

The moratorium must be requested by the lessee (tenant) to the landlord within ONE MONTH from the entry into force of the rule (that is, until May 23).

Which self-employed and SMEs can ask for a moratorium on rent

SMEs and the self-employed who meet the following requirements may apply for rental aid:

1. In the case of the self-employed person with a lease of a premises assigned to his economic activity:

– You must be affiliated and registered on the date of the declaration of the state of alarm of March 14 in the Special Social Security Scheme for Self-Employed or Self-Employed Workers or in the Special Social Security Scheme for Sea Workers or, where appropriate, in one of the substitute Mutuals of the RETA.

– That your activity has been suspended due to the entry of the state of alarm.

– In the event that economic activity has not been suspended, as a result of the state of alarm, the self-employed person must prove the reduction in the billing of the calendar month prior to which the postponement is requested by at least 75%, in relation to the average monthly invoice of the quarter to which that month refers to the previous year belongs.

2. In the case of SMEs with a lease of a property to develop their economic activity:

– That the limits established in article 257.1 of Royal Legislative Decree 1/2010, of July 2 (Capital Companies Law), are not exceeded. That is to say, that the total assets of the SME does not exceed four million euros for two consecutive years, or that the net amount of its annual turnover does not exceed eight million euros for two consecutive years, or that the average number of workers during the year does not exceed 50.

– That the activity has been suspended due to the entry into force of the state of alarm or by orders issued by the competent Authority.

– In the event that the activity is not suspended by the state of alarm, the SME must prove the reduction of its billing of the calendar month prior to the one in which the moratorium is requested by at least 75%, in relation to the average monthly billing of the quarter to which that month belongs referring to the previous year.

How to accredit the requirements to request the rent deferral

The tenant must prove that he is in a position to request the moratorium before the landlord with the following documentation:

– If you have suffered a reduction in activity, you must submit a responsible statement in which, based on accounting information and income and expenses, the reduction in monthly billing by at least 75% is stated, in relation to the average monthly billing of the same quarter of the previous year.

– In any case, when the landlord requests it, the tenant will have to show his accounting books to the owner to prove the reduction in activity.

– In case of having suffered a suspension of activity, the SME or the self-employed person must prove it by means of a certificate issued by the Tax Agency or the competent body of the autonomous community on the basis of the declaration of cessation of activity declared by the interested party.

Consequences of improper application of the moratorium

Tenants who have benefitted from the temporary and extraordinary postponement in the payment of the rent without meeting the requirements, will be responsible for the damages that may have occurred, as well as for all the expenses generated by the application of these exceptional measures, without prejudice to the responsibilities of another order to which their conduct may give rise.