Public grants from the Principality of Asturias

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The Principality of Asturias has published a Covid line of direct grants for the self-employed and businesses to mitigate the effects of COVID. This public grants scheme forms part of Royal Decree 5/2021, which sets out to provide companies and the self-employed with EUR 7,000 million in public grants.

What does the grant consist of?

The finalist grant consists of a sum of money which must be exclusively used to pay off debt and make payments to suppliers and other financial or non-financial creditors, and the fixed costs incurred, provided the payments accrued between 1 March 2020 and 31 May 2021, in relation to contracts prior to 13 March 2021.

The grants are divided into four eligible categories:

Direct grants for the commercial sector.
Direct grants for the tourism, hospitality and catering sector.
Direct grants for the sports sector.
Direct grants for the cultural sector.

What are the specifications in Asturias with respect to RD 5/2021?

Making use of the authorisations granted to the Autonomous Communities in RD 5/2021, the Principality of Asturias has extended the scope of the grant to sectors whose activity has been particularly affected, to a total of 148 eligible activities (53 CNAEs in addition to the 95 established in RD 5/2021).

Which persons can be beneficiaries?

The following persons and companies can be beneficiaries of direct grants:

Any entrepreneurs or professionals applying the objective-estimate personal income tax system (IRPF) and operating in the sectors defined in the appendices to the published notices for each of the eligible categories.
Any entrepreneurs or professionals and companies operating in the sectors defined in the appendices to the published notices for each of the eligible categorieswhose volume of business for value-added tax (VAT) fell by more than 30% in 2020 with respect to 2019.

Also, (i) any entrepreneurs or professionals who, in their personal income tax return for 2019, declared negative net earnings for any economic activities for which they applied the direct-estimate method for the purposes of determination or, where applicable, tax loss carryforwards for corporation tax or non-resident income tax, prior to application of the reserve for capitalisation and compensation of tax loss carryforwards; or (ii) finance companies, will not be eligible for the grants.

What requirements must I satisfy?

In order to qualify as a beneficiary, the following requirements must be met:

Have a tax address in the Principality of Asturias. However, those who, with no tax address in Asturias, had a volume of business in 2020 of more than EUR 10 million and undertook their economic activity in this autonomous community may participate in the call for applications.
Carry out one of the activities defined in the appendices to the public notices for each of the eligible categories in 2019 and 2020,which is still ongoing at the time of submission of the application..

Eligible activities in the commercial sector: See link
Eligible activities in the tourism, hospitality and catering sector: See link
Eligible activities in the sports sector: See link
Eligible activities in the cultural sector: See link

They must not have been convicted on a firm ruling barring them from obtaining subsidies or public grants, or for offences relating to prevarication, bribery, misappropriation of public funds, influence peddling, fraud and illegal collection of funds or urban development offences.
They must not have given rise to the definitive termination of any contract drawn up with the authorities. .
They must be up to date with the payment of their in relation to refunds of subsidies or public grants.
They must be up to date concerning compliance with their tax and social security obligations. .
They must be up to date in terms of compliance with tax obligations and not have any amounts outstanding with the tax department in the Principality of Asturias for debts due and payable.
They must not have requested voluntary bankruptcy proceedings, they must not have been declared insolvent in any proceedings, they must not be in bankruptcy, unless an agreement has been reached in such proceedings,, they must not be subject to judicial proceedings or have been declared ineligible as per Bankruptcy Law 22/2003 of 9 July if the period of ineligibility established in the bankruptcy ruling has not terminated.
Their tax residence must not be in a country or territory officially classified as a tax haven.

In addition to these requisites, the beneficiaries of the grants must undertake the following commitments and obligations:

Continue the activity corresponding to the grants up to 30 June 2022.
Refrain from distributing dividends in 2021 and 2022.
Refrain from approving any increases in the remuneration of senior management over a period of two years following approval of the subsidy.
Demonstrate compliance with the requisites and conditions demanded, or authorise verification of same by the body undertaking the procedure.
Notify the receipt of other grants, subsidies, income or resources financing the activities subsidised.
Notify any modification arising with respect to the circumstances considered for approval of the subsidy, and with respect to the commitments and obligations undertaken by the beneficiary.
Before the proposed approval ruling is issued by the approval body, they must accredit that they are up to date with their tax, labour and social security obligations, and they must not have any amounts outstanding in the Principality for debts due and payable.
They must submit to verifications, to be carried out by the approval body, and any other processes of verification and financial control that may be carried out by the competent control bodies in Spain or the EU, and furnish any information that may be requested of them.
They must return the funds received in the scenarios contemplated in regulations and in Article 37 of General Law on Subsidies 38/2003 of 17 November.
Retain the supporting documents on the use of the funds received, including electronic documents, until such time as they may be properly verified and checked.
In general, any other stipulation laid down in Article 14 of General Law on Subsidies 38/2003 of 17 November, and compliance with their obligations concerning transparency, as per the provisions of Law 8/2018 of 14 September on Transparency, Good Governance and Stakeholders.

How much is the grant?

The amount of the subsidy will be determined by the amount of eligible expenditure declared by the applicant, provided that it is within the following limits::

For entrepreneurs or professionals applying the objective-estimate personal income tax system: the maximum grant approved will be EUR 3,000.
For entrepreneurs, professionals or companies with a downturn of more than 30% in 2020 in their annual volume of business with respect to 2019, the maximum grant approved will be:

40% of the downturn in the volume of business in 2020 compared to 2019, in excess of said 30%, an amount which may not be less than EUR 4,000 or more than EUR 200,000, when the applicant has a maximum of 10 employees.
20% of the downturn in the volume of business in 2020 compared to 2019, in excess of the aforementioned 30%, an amount which may not be less than EUR 4,000 or more than EUR 200,000, when the applicant has more than 10 employees.

In the case of professionals or companies registered or incorporated between 1 January 2019 and 31 March 2020, the maximum grant will be:

EUR 3,000 if they apply the objective-estimate personal income tax system.
Otherwise, the aforementioned calculation criterion will be applied for applicants who experienced a fall of 30% or more in their annual volume of business in 2020. However, if the comparison with 2019 is not possible, the maximum grant will be EUR 4,000..

These criteria will also be applicable in the case of companies which made a structural modification to the company between 1 January 2019 and 31 December 2020, and with respect to entrepreneurs or professionals registered for a period of less than one year in 2019 or 2020.

What documentation will I be asked for in the application?

To apply for the grant, it is sufficient to fill in the specific application form which, by default and unless any specific objections are forthcoming, authorises the authorities in the Principality of Asturias to make the necessary consultations with other public authorities in order to ascertain compliance with the requirements set out in the public notice.

If any specific objections to these consultations are voiced by the party concerned, in addition to the application form, it must supply the documentation required to check the information on the form.

The application form requires the following information:

ID and tax address of the applicant.
Indication of whether they intend to apply for grants in territories other than that in which they are registered for tax.
Whether the objective-estimate personal income tax system was applied in 2019 or 2020.
Whether it is a consolidated group paying corporation tax.
Whether, in 2019 and 2020, they formed part of a group applying a special-territory tax consolidation system, the composition of this group in 2020, and whether any of its companies paid VAT to a special-territory tax authority exclusively during those years. If so, the territory or special territory in which it operates must be specified.
Whether, in 2019 and/or 2020, they formed part of a group applying a common-territory tax consolidation system, and whether any of its companies exclusively paid VAT to a special-territory tax authority during those years. If so, the territory or special territory in which it operates must be specified.
Specification of whether they exclusively carry out operations not liable for tax or exempt from tax with no obligation to submit periodic VAT self-assessments, and determine payment in instalments of corporation tax.
Amount requested to cover debts, payments and fixed costs accrued between 1 March 2020 and 31 May 2021 from contracts prior to 13 March 2021, for which the grant is requested.
Specification of whether the company has ongoing senior management contracts. .
Responsible declaration of compliance with the commitments and obligations established in the public notice.
Responsible declaration stating that the total amount of public grants received to date since the start of the National Temporary Framework does not exceed EUR 1.8 million, where applicable.
Authorisation by the beneficiary for the authorities in the Principality of Asturias to send the data obtained pursuant to this public notice to the Treasury Ministry.
Authorisation by the beneficiary to obtain all the necessary information for approval of the subsidy requested.

Any additional corroborative documentation that may be demanded of applicants/beneficiaries will be sent electronically to the Principality of Asturias' website.

How is my grant justified when it is approved?

Within four months following publication of the approval ruling in the Official Gazette of the Principality of Asturias, the beneficiary must justify the application of the funds received to the intended purpose,, on the specific form on the Principality of Asturias' website, along with the following documentation:

In the case of grants of less than EUR 60,000: the beneficiary must furnish a simplified justificatory account which will contain the following information:

A report on justificatory action for compliance with the conditions imposed in the public notice pertaining to the grant.
A classified list of the expenditure covered with the grant received, identifying the creditor and the invoice, the amount of the tax base, date of issue and date of payment.
Breakdown of any other income or subsidies that have financed the activity subsidised, with an indication of the amount and origin.
Where applicable, letter of payment of a refund in the event of any remainders not applied, and the interest they carry.

In the case of grants equal to or more than EUR 60,000: the beneficiary must provide the following documentation:

A report on justificatory action for compliance with the conditions imposed in the public notice.
A list in chronological order of the expenditure covered with the grant received, identifying the creditor and the invoice, the amount, date of issue and date of payment.
Invoices in order pursuant to the list in section a), issued by suppliers and other creditors, and employee wages, paid by the beneficiary against the subsidy approved.
Banking evidence of payment of invoices. When the creditors are financial institutions, certificate from the financial institution attesting to total or partial cancellation of the debt. A certificate showing banking debt priorities must also be furnished.
When invoices and payment obligations are subsequent to 13 March 2021, contract or contracts from which payment obligations to suppliers and other creditors arise or, if there is no written contract, order or acceptance of the offer or the estimate, with attestation in any case of the date on which the debt or payment obligation is undertaken.
Breakdown of any other income or subsidies that have financed the activity subsidised, with an indication of the amount and origin.
Where applicable, letter of payment of a refund in the event of any remainders not applied, and the interest they carry.

The Principality of Asturias will also run a check on the basis of the information supplied by the tax agency to ensure that the beneficiary did not distribute dividends in 2021 or 2022, and that it maintained the economic activity up to 30 June 2022.

Also, within one month after two years have elapsed since approval of the grant, beneficiary companies must furnish a certificate demonstrating that they have not approved any increases in the remuneration of senior management over a period of two years since approval of the grant.

What is the deadline, and how can I apply for the grant?

The applications may be submitted from 1 July 2021 up to 14 July 2021..

Applications pwill be submitted electronically through the Principality of Asturias' website,, in the personal area, pursuant to the specific form which will be available for each of the eligible categories (see link).

In order to access the procedure applicants must identify themselves with one of the electronic certificates recognised by the Principality of Asturias' website.

*For more information on the terms and conditions and the public notice of the four categories of grants, see the Official Gazette of the Principality of Asturias of 30 June 2021 (see link).

Appendix. List of CNAE-09 activities added by the Principality of Asturias.

CNAE-2009	ACTIVITY DESCRIPTION
1013	Preparation of meat and poultry products
1053	Production of cheese
1102	Winemaking
1105	Production of beer
1330	Textile finishes
1512	Production of leatherwork items, travel wear, saddlery and harnesses
1629	Production of other wood products; cork items, for basketmaking and esparto grass products
2331	Manufacture of ceramic tiles and slabs
2341	Manufacture of ceramic items for household and ornamental use
2410	Manufacture of basic iron, steel and ferrous alloy products
2550	Metal forging, stamping and drawing, powder metallurgy
4511	Sale of cars and light motor vehicles
4520	Maintenance and repair of motor vehicles
4611	Trade intermediaries in raw agricultural and textile materials, animals and semi-finished products
4619	Trading intermediaries in miscellaneous products
4641	Wholesale trading in textiles
4642	Wholesale trading in clothing and footwear
4643	Wholesale trading in household appliances
4645	Wholesale trading in perfumes and cosmetics
4647	Wholesale trading in furniture, carpets and lighting equipment
4649	Wholesale trading in other household items
4665	Wholesale trading in office furniture
4674	Wholesale trading in hardware, plumbing and heating
4690	Non-specialised wholesale trading
4743	Retail trading in audio and video equipment in specialist establishments
4752	Retail trading in hardware, paint and glass in specialist establishments
4753	Retail trading in rugs, carpets, wall and floor claddings in specialist establishments
4754	Retail trading in household appliances in specialist establishments
4759	Retail trading in furniture, lighting equipment and other household items in specialist establishments
4763	Retail trading in recordings of music and videos in specialist establishments
4764	Retail trading in sport equipment in specialist establishments
4765	Retail trading in games and toys in specialist establishments
4775	Retail trading in cosmetic and hygiene products in specialist establishments
4776	Retail trading in flowers, plants, seeds, fertilisers, pets and pet food in establishments
4778	Other retail trading in new items in specialist establishments
4779	Retail trading in second-hand items in establishments
4781	Retail trading in food, beverages and tobacco in stalls and in markets
8553	Driving school activities
9602	Hairdressing and other beauty treatments
8559	Other education not included elsewhere
8551	Sport and recreational education
9312	Sports club activities
3220	Manufacture of musical instruments
5811	Book publishing
5912	Activities involving post-production of films, videos and television programmes
5915	Activities involving film and video production
5916	Production activities for television programmes
5917	Activities involving film and video distribution
5920	Activities involving sound and music recordings
8552	Cultural education
9003	Artistic and literary creation
9105	Library activities
9106	Archiving activities