Canary Islands Government COVID-19 Support Measures

Overview

The Canary Islands government announced the approval of direct financial aid for small businesses and self-employed individuals affected by the COVID-19 pandemic.

Under Decreto ley 6/2021, the funds are targeted at two main groups:

• Sole proprietors paying estimated income taxes
• Businesses whose turnover dropped over 30% in 2020 compared to 2019.

The aid aims to help cover:

• Debts to suppliers
• Reduce bank debt
• Pay fixed costs

There are strict rules on how the recipients must justify the expenditure.

Recent Developments

A notable development is the recent resolution granting funding to Seit-52, S.L. and setting a clear deadline of 15 days for the company to submit proof of spending and repayment documentation.

"Failure to comply could result in demand for repayment, including interest accrued."

This measure underscores the importance of transparency and auditing standards for recipients, ensuring taxpayers’ money supports businesses that are genuinely struggling.

Oversight and Accountability

The process emphasizes strict oversight, requiring beneficiaries to:

• Provide detailed accounts
• Undergo audits conducted by certified professionals.

As the government continues supporting businesses in the post-pandemic era, these measures reinforce accountability while providing crucial cash flow relief to keep the local economy afloat.