On November 6, the Official State Gazette (BOE) published Royal Decree-Law 6/2024, of November 5, adopting urgent measures to respond to the damage caused by the Isolated Depression at High Levels (DANA) in various municipalities between October 28 and November 4, 2024. Firstly, the Royal Decree-Law includes a list of 78 municipalities that were particularly affected, to which the established measures will be applied.
Among the main measures, the following stand out:
Legal Measures
Extraordinary financial aid in the form of grants is granted to compensate for personal damage, damage to homes, household goods, and industrial, commercial, and service establishments. These amounts have been significantly increased compared to those provided for in Royal Decree 307/2005, of March 18, which regulates emergency and catastrophic situation aid. The specific amounts are as follows:
- €72,000 for death or permanent disability, with no requirement for economic dependency.
- €60,480 for destruction of the home.
- €41,280 for damage affecting the structure of the primary residence.
- €20,640 for damage that does not affect the structure of the primary residence.
- €10,320 for destruction or damage to essential household items.
- €36,896 for damage to common elements in a Community of Property Owners.
For industrial, commercial, and service establishments covered by the Insurance Compensation Consortium, a 7% subsidy on indemnifiable damage is offered, applicable to the deductible regulated under Order ECC/2845/2015. This aid must be requested within 2 months of the publication of the Royal Decree-Law in the BOE. For commercial, industrial, and service establishments indemnified by the Insurance Compensation Consortium, no deductible will apply if the annual net turnover does not exceed €6 million.
Additionally, direct assistance is available for self-employed workers and companies affected, with their tax domicile in the affected municipalities as of October 28, 2024. The amounts vary according to the annual turnover:
- €10,000 for legal entities with a 2023 turnover equal to or less than €1 million.
- €20,000 if turnover is more than €1 million but equal to or less than €2 million.
- €40,000 if turnover is more than €2 million but equal to or less than €6 million.
- €80,000 if turnover is more than €6 million but equal to or less than €10 million.
- €150,000 if turnover exceeds €10 million. For self-employed workers, a €5,000 grant is offered. Applications must be made between November 19 and December 31, 2024, with the condition that the beneficiary remains registered as a business owner until June 30, 2025.
Financial aid is also authorized for local authorities to cover up to 100% of the expenses caused by the DANA, excluding repairs to ministerial infrastructures, except in urgent public safety cases. Applications must be submitted within two months of the publication of the Royal Decree-Law.
Other Measures
The Ministry of Territorial Policy is authorized to grant direct subsidies to local entities for the execution of projects to repair or rebuild affected infrastructure.
A line of guarantees of up to €5 billion is established to support households, businesses, and self-employed workers in the affected municipalities.
A three-month moratorium is granted on loan and credit repayments, with the repayment period extended by an additional nine months. A 75% reduction in related notarial and registration fees is also foreseen.
Suspension of Deadlines and Procedural Measures
In Valencia, procedural deadlines are suspended from October 30 to November 10, 2024. Notaries are authorized to act electronically and free of charge in emergency matters. Additionally, the College of Registrars will issue free property location notes.
Consumer protection measures are implemented, and the statute of limitations and expiration deadlines are suspended for the affected parties. Flexible waste management is also planned for the affected areas, along with amendments to Law 39/2015 to suspend related administrative deadlines.
Fiscal Measures
Tax relief is offered to taxpayers with income up to €6,010,121.04 in 2023 or no economic activity, and with affected assets or establishments. Tax self-assessments due between October 28 and December 31, 2024, are extended until January 30, 2025, and the same extension applies to tax demands.
The deadlines for tax procedures and appeals are also extended until January 30, 2025, and a special deferral scheme of 24 months for payments is introduced, with the first six months being interest-free.
Additional Tax Exemptions and Benefits
Exemptions from the property tax (IBI) and a proportional reduction of the business tax (IAE) for 2024 are included based on the cessation of activity due to the damages suffered. The deadlines for cadastral matters are also extended. Finally, tax relief is approved for the personal income tax (IRPF), postponing the second payment until February 5, 2025, exempting aid for personal damages, and allowing reductions in performance indices for agricultural activities.
