Government aid to alleviate the effects of the DANA: What are they and who can apply for them?
News - 2024.11.20
Starting on 28 October, a DANA (Isolated High Level Depression) caused rainfall exceeding 600 litres per square metre in some areas of the Valencian Community, Castilla-La Mancha, Andalusia, Catalonia and, to a lesser extent, the Balearic Islands and Aragon. The rainfall caused flooding and damage to all types of infrastructure, roads, railways, bridges, houses and vehicles, causing more than 220 fatalities and numerous missing persons.
What are the most affected areas?
- A total of 78 towns in Valencia, Castilla-La Mancha and Andalusia have been particularly affected by the DANA. They include:
- In the province of Valencia: the area of Utiel-Requena, l'Horta Sud, la Ribera Alta and Baja and the Comarca de los Serranos.
- In the province of Albacete: the town of Letur.
- In the province of Cuenca: the town of Mira.
- In the autonomous community of Andalusia: various points in the provinces of Malaga, Almeria, Granada, Seville, Huelva and Cadiz.
Urgent government action to rebuild and revive areas affected by the DANA
The Government took immediate response measures to save lives, identify victims and ensure basic supplies and security. Given the scale and magnitude of this natural disaster, the first Council of Ministers following the DANA, held on 5 November, agreed:
- To declare the communities of Comunitat Valenciana, Castilla-La Mancha, Andalusia, Andalusia, the Balearic Islands and Aragon as areas seriously affected by a civil protection emergency . This declaration allows the Government to act urgently to care for the affected population and to speed up the implementation of actions.
- Also approved was the Royal Decree-law on urgent measures in response to the damage caused by the hurricane, which includes measures that complement those contemplated in the previous declaration.
Subsequently, the Council of Ministers on 11 November agreed:
- To approve the Royal Decree-law on urgent measures to promote the Immediate Response, Reconstruction and Relaunching Plan in response to the damage caused by the hurricane, with 110 additional measures.
To whom are the measures in the agreements addressed?
In general terms, to individuals and public or private entities that have suffered damage to their property or rights as a direct or indirect consequence of the DANA, in the towns included in the Royal Decree-laws, provided that they are accredited in accordance with what is established in the provisions, agreements or any other instruments formalised by the public administrations.
What support has been approved for households and families?
1. Direct aid
The Royal Decree-law quadruples the aid provided for in current legislation to meet the needs arising from emergencies or disasters. These are direct transfers from the government to citizens who have suffered the consequences of the DANA, and they do not have to be paid back.
- For death and disability.
- For total destruction of the dwelling.
- For damage affecting the structure of the dwelling.
- For damage that does not affect the structure of the home.
- For damage to common elements of a community of neighbours.
- For basic necessities, including furniture, household appliances and everything that makes the dwelling habitable.
2. Tax benefits
- Those affected will not have to pay the Property Tax (IBI) for the year 2024.
- No fees are payable to the Traffic Agency by those who have to deregister damaged vehicles or replace lost or damaged driving licences.
- Personal Income Tax (IRPF) will not be liable on aid received by those who have suffered personal injury.
- Citizens in the affected areas will be able to delay the voluntary payment period for the second income tax payment by three months, until 5 February 2025.
3. Increased benefits
- Some 33,000 households receiving Minimum Basic Income or non-contributory pensions in the areas affected by the DANA will see a 15% increase in the amount of their benefit for three months (from November to January 2025).
- The IMV's Child Income Support Supplement (CAPI) will be extended by 30% over the next three months.
4. Guarantee of basic supplies and deferment of invoices
- Power and gas cuts to households affected by the DANA are prohibited.
- At no cost to the consumer, it allows the modification and temporary suspension of supply contracts and the deferral of electricity and gas bills.
- Telecom operators must compensate their customers for the services they did not receive during the disaster.
More information on the amounts, deadlines and how to apply for the grants for households.
What support is available for workers and the self-employed?
1. Main aid for the self-employed
- Direct assistance: The self-employed in the affected areas can apply for a direct transfer of €5,000, which they will not have to pay back.
- Total cessation of activity: Self-employed people with affected businesses will be able to apply for a severance benefit corresponding to 70% of their contribution base, even if they have not completed the minimum 12 months required by law to qualify for it.
- Partial cessation of activity: The self-employed who take advantage of this benefit will, for three months, be able to combine their activity with the receipt of a benefit equivalent to 50% of their contribution base.
2. Social protection measures
In addition, social protection aid has been set up for workers suspended by companies that have had to stop their activities in the towns affected by the SWD, or have seen their activities severely damaged by the catastrophe even when they are not located in the affected towns. The main ones are:
- Improvement in the treatment of sick leave: Temporary incapacity processes initiated as a result of the DANA in the affected towns will be considered an accident at work, with no requirement for a prior minimum contribution period. Pensions for permanent disability, death and survivors' pensions resulting from the DANA in the affected towns will also be calculated as if they were the result of an accident at work.
- Special access to unemployment protection for domestic workers: Domestic workers will be eligible for protection measures for causes related to the DANA with coverage equivalent to that of other workers, even if they do not have the minimum contribution period.
More information on deadlines and how to submit applications for workers and the self-employed.
What aid has been approved for the private sector?
1. Direct aid
- The amount of aid depends on the company's turnover and does not have to be repaid.
- In addition, aid has been provided for damage to industrial, commercial and service establishments.
2. Improved access to ERTE
Companies that have suspended their activity because they are located in the towns affected by the DANA and those that have been severely damaged by the catastrophe, despite not being located in those areas, will be eligible for Temporary Redundancy Programmes (ERTE).
- The processing of ERTE due to Force Majeure has been simplified.
- The contributions of companies and ERTE workers will be 100% exempted until February 2025.
- There will be no prior contribution requirements (qualifying period) to access this coverage, which will not consume unemployment benefits for the purpose of future benefits.
3. Support to the agricultural sector
- Direct aid of €200 million for farms that have suffered a drop in income, damage that prevents them from carrying out the following season normally or losses of more than 40% of their productive potential. These transfers do not have to be returned.
- A €170-million programme to clean and repair agricultural infrastructure such as roads, terraces and irrigation systems. This investment is complemented by €10 million for the renewal of damaged agricultural machinery.
- Creation of a new line of subsidised loans and guarantees ICO-MAPA-SAECA, with a budget of €60 million.
4. Support for the cultural sector
- Direct transfers from the state that do not have to be repaid. They are aimed at cinemas and bookshops affected by the disaster.
More information on the amounts, deadlines and how to apply for grants for the private sector.
What other support measures has the Executive implemented in the most affected territories?
- ICO guarantee line: Households, the self-employed and companies can benefit from an ICO guarantee line to access loans on better terms until December 2025. This line also facilitates the collection of advance payments on the basis of claims to the Insurance Compensation Consortium. It is endowed with €5 billion.
- Compensation for vehicles and other insured property: These are direct compensations from the Insurance Compensation Consortium for the loss of property caused by the DANA.
- Moratorium on loans and mortgages: Households and businesses with a mortgage or consumer loan will be able to postpone full repayment of their loans for three months and pay only interest for a further nine months. In addition, the Code of Good Practices is extended so that households hit by the DANA can freeze their mortgages for an additional period of time, once the 12 months already included in the first royal decree law have passed.
- Tax benefits for the self-employed and companies:
PERSONAL INCOME TAX: The second payment of personal income tax for those living in towns affected by the DANA is automatically postponed until 2025.
IBI: Those affected will not have to pay Property Tax (IBI) for the year 2024.
IAE: Those affected will receive a reduction in the Business Activity Tax (IAE) for 2024.
Tax declarations: The deadline for filing tax returns and self-assessments due between 28 October and 31 December 2024 is extended to 30 January 2025. A special deferral of payment can also be requested.
Self-employed persons and companies that pay tax under the module system: They will have a 25% reduction in personal income tax and VAT. Exceptionally, they may also waive the application of the module system and be taxed under the simplified direct assessment system.
- More flexible Social Security obligations: facilities are provided for Social Security payments, with the suspension and extension of deadlines, and for requesting cancellations and changes in workers' Social Security details.
More information on the amounts, deadlines and how to apply can be found at INFO-DANA grants.
How will the Government support the affected local authorities?
The state will finance 100% of the emergency expenses of the towns for drinking water supply, evacuation, sludge removal, the housing and feeding affected people and the cleaning of roads, including the removal of unserviceable goods.
In addition, the state may subsidise up to 50% of the cost incurred by the affected local authorities to repair infrastructures, facilities and services.
To alleviate the budgetary situation of the affected towns, the state will also compensate the municipalities for the loss of revenue they will suffer after applying tax benefits in the Real Estate Tax (IBI) and the Economic Activities Tax (IAE). Their resources will thereby not be diminished.
In addition, local authorities' surpluses can be used to finance investments to repair damage, which will be considered to be financially sustainable.
Local authorities will also be able to finance the actions carried out to alleviate the damage caused by the DANA from the Local Entities Financing Fund in 2024 and 2025 .
In social matters, the agreements also include aid to finance actions against gender violence, such as the reconstruction of town resources for the care of victims of violence against women, the coverage of temporary accommodation costs, and the hiring of teams of specialised staff.
Other aid is intended to finance protection measures and basic services for children, adolescents and young people. These are immediate response actions for minors in situations of neglect, psychosocial care programmes, emergency actions on residential resources for minors, and initiatives to guarantee care or help for foster families or social entities, among others.
In addition, aid is envisaged to finance the immediate needs of local social services to assist the affected population in situations of vulnerability.
More information on the grants for municipalities.
Offices and telephone numbers for assistance related to the DANA
The Government has set up special offices in the areas affected by the DANA to facilitate the processing of aid for those affected. At these offices, which include the Guardia Civil, the National Police, the Tax Administration and Post Office service points, citizens can manage requests for assistance, receive information on available tax measures and access mobile office services. In the DANA Info section there is a map to locate the nearest office and get quick and personalised assistance.
To provide information and assist those affected in applying for assistance, the following telephone numbers have been set up.
Non official translation