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Royal Decree-Law 8/2020 of March 17, 2020 Launches Urgent and Extraordinary Measures to Confront the Impact and Social Impact of COVID-19 

Published: March, 2020

Submission: March, 2020

 



The March 18, 2020 edition of the Official State Gazette has published Royal Decree-Law 8/2020 of March 17, 2020 on urgent and extraordinary measures to confront the economic and social impact of COVID-19. The decree-law comes into force on its publication date, for a one-month term, and allows this term to be extended.


The adopted measures cover many different fields of business activity. Below is a summary of the main measures classified by area. 


Individual support measures during the state of emergency


  • Guaranteed supply of electricity, natural gas and water during the month following the entry into force of the royal decree-law for groups classified as vulnerable consumers, severely vulnerable consumers or consumers at risk of social exclusion pursuant to Royal Decree 897/2017, of October 6, 2017.

  • The validity of the energy assistance relief (bono social) is automatically extended until September 15, 2020 for those beneficiaries for whom the 2-year period provided for in said Royal Decree 897/2017 expires beforehand.

  • Moratorium on the payment of mortgage debts for acquisition of the principal residence for mortgagors who are unemployed or who, as entrepreneurs or professionals, suffer a substantial loss of income or drop in sales greater than 40%, or mortgagors whose family unit, in the month prior to the request for the moratorium, does not reach a certain level of income, depending on its members, the mortgage payment represents more than 35% of their income and the health emergency has altered their economic circumstances. The moratorium must be requested by the debtor from the creditor, providing certain regulated documentation. It may be requested up to 15 days after the end of the valid term of this royal decree-law and the creditor has a maximum period of 15 days in which to process the request. Once the moratorium has been granted, its existence and duration must be notified to the Bank of Spain for accounting purposes and so that it is not included in the risk forecast calculation.

  • The benefit of discussion is granted, even where it has been contractually waived, to mortgage guarantors or sureties who are in a situation of vulnerability.

  • While the state of emergency is in place, maintenance of electronic communication services and broadband connectivity is guaranteed to all current users, as is the provision of the elements making up the universal telecommunications service, for which purpose the electronic communication service provider designated to provide the universal telecommunications service must guarantee the continuity and quality of the service to all current beneficiaries.

  • Additionally, the possibility of launching extraordinary commercial campaigns for the contracting of electronic communication services requiring number portability is temporarily suspended, and all operations for portability of fixed and mobile numbers that are not already underway are suspended, save in exceptional cases of force majeure.

  • While the state of emergency is in place, the periods for returns of any products bought by any means, whether in person or online, are suspended, and will resume upon expiry of the royal decree-law or any extension thereof.

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