THE declaration of a disaster area – either area seriously affected by a civil protection emergencyas it is officially called – involves the launch of extraordinary remedial measures after a major emergency. In this sense, the General State Administration is the one who intervenes to help return to normal to neighbors of the affected area.
Of course, beforehand, the Executive itself must analyze whether there have been bodily injury and property damage which disrupt the living conditions of the population in a given area or if some or all public services have been paralyzed of a specific specific area, as shown in the article 23.2 of law 17/2015 of July 9of the National Civil Protection System.
THE declaration of a seriously affected area as a civil protection emergency is made by “Agreement of the Council of Ministers“, on the proposal of the Ministers of Finance and Public Administration and the Interior and, where applicable, the heads of the other ministries concerned, and will include, in any case, the delimitation of the area concerned”, specifies the document . Thus, she adds, said declaration may be requested by interested public administrations.
How does the disaster zone declaration affect residents?
THE declaration of a disaster area provides for measures for bodily and material damage of different natures, as well as tax measures and also labor and social security measures for the neighbors of the affected area. Here are some of the measures that can be adopted, after approval by the Council of Ministers:
- financial aid to individuals for damage caused to their habitual residence and their essential goods.
- Remuneration of local companies for expenses arising from actions that cannot be postponed.
- Aid to natural or legal persons having carried out the personal benefit or property.
- Assistance intended for industrial establishmentssales and services.
- Grants for infrastructure damage municipal, provincial and island road network.
- Help for damage to production agriculture, livestock, forestry and marine aquaculture.
- opening of loan lines preferential loans subsidized by the Official Credit Institute.
Along with this, the aforementioned law also includes assistance with material and personal damage (death or absolute and permanent disability). Concerning material damage, it indicates that it must be “certain, economically evaluable and referring to assets who have the insurance coverage, public or private“.
Tax benefits for residents of a “catastrophe zone”
At the same time, those affected undergo a series of tax advantagesas exempt from paying IBI either tax cuts on economic activities. These are the eight measures that the aforementioned law repeats verbatim:
- Property tax exemptioncorresponding to the budgetary year during which the emergency situation which affects homes, industrial, tourist and commercial establishments, agricultural, livestock and forestry operations, work premises and the like occurred, when they have been damaged and it is proven that both the people and the property therein had to be totally or partially rehoused in other homes or in different premises until the damage suffered is repaired, or that the destruction of crops constitutes losses not covered by any public or private insurance formula.
- Reduction of the tax on economic activitiescorresponding to the fiscal year during which the emergency situation occurred, to industries of all kinds, to commercial, tourist and professional establishments, whose commercial premises or assets used for this activity have been damaged, provided that they had to be moved or damage occurred requiring the temporary closure of the activity. The reduction indicated will be proportional to the time elapsed from the day of cessation of the activity until its resumption under normal conditions, whether in the same premises or in other authorized for this purpose.
- THE exemptions and reductions in tax quotas indicated in the preceding ordinals will include those of the surcharges legally authorized thereon.
- Taxpayers who, being entitled to the advantages established in the previous ordinals, have paid the revenue corresponding to said financial year, can request the reimbursement of amounts registered.
- Exemption from taxes of the autonomous body Central Traffic Headquarters for the processing of vehicle cancellations requested following the damage caused, and the issuance of duplicates of driving or circulation licenses destroyed or lost for these causes.
- THE decrease in local tax revenue which, where applicable, occurs in municipalities, provincial councils, island councils and island councils as a result of the application of this article, will be compensated from the general state budgets, in accordance with the provisions of the Article 9 of the consolidated text of the law regulating the Local Treasury, approved by Royal Legislative Decree 2/2004, of March 5.
- THE help in case of bodily injury They will be exempt from personal income tax.
- Exceptionally, the Minister of Finance and Public Administration may authorize a reduction in net rates of return on agricultural holdings and agricultural activities carried out in the affected areas. You can also establish moratoriums on payment of fees to Social Security or suspend contracts due to force majeure.
