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During the two episodes of destructive flooding that Malaga province experienced as the result of two 'Dana' storms between the end of October and mid-November, more than 500 residents were left without their vehicles, according to the latest data from the Consorcio de Compensación de Seguros. The body is Spain's state-run agency that manages a compensation fund that pays out for damage from natural disasters to those with a valid insurance policy. Now, in the event that they need to buy a used vehicle to replace their loss, those affected will be exempt from paying the transfer of ownership tax (Impuesto de Transmisiones Patrimoniales').
This is one of the urgent measures that was approved in the extraordinary, online meeting of the Junta de Andlaucía's governing council held on Thursday. The meeting approved a new decree that will become law, detailing actions by the regional government to alleviate the effects of the Danas, "with the idea of speeding up the payments of the incentives that the Andalusian government committed to those affected", stated the regional minister for the economy, Carolina España.
The decree law has three points, the first of which is a 100% rebate on the transfer tax (ITP) for used vehicles that are purchased to replace another damaged by the Dana. The regional minister highlighted that normally, when a second-hand vehicle is purchased, it is subject to this tax, which "is going to be reduced to 100%." This means that for a vehicle with a purchase price of 10,000 euros, the new owner will have a saving of 400 euros (the ITP rate being 4%).
Carolina España pointed out that new cars are subject to IVA sales tax, which falls to central government, "so we encourage [them] to also make an IVA rebate for those affected by the Dana."
The second point refers to the incentives that are aimed directly at local councils. The two decrees provide for 20 million euros in aid: 12 million in one and eight million in the other (the deadline for the latter was this Thursday). "We want to pay them quickly and for them to arrive as soon as possible to fix infrastructure, and that is why we have set up an advance payment procedure so that they are paid out before 31 December." A total of 440 Andalusian municipalities are eligible and the deadline for applying for the advances will be extended until 13 December.
The final key item on the agenda was to include an amendment, which was already reported days ago, to the Law on Universities to address and resolve exceptionally difficult financial situations in some of these institutions, as in the case of the University of Malaga (UMA). The Junta will come to the rescue of the latter with a bailout loan of 48.5 million euros, for which UMA will have a three-year grace period and then 21 years to repay the loan at an interest rate of 1%. In addition, UMA has committed itself to an adjustment plan to cut expenditure and boost income streams.
"It is an urgent decree because we want to pay the 'Dana' incentives before 31 December, and we are implementing it thanks to the political and budgetary stability of this [regional] government, which is not subject to blackmail from either the right or the left", said the regional minister for the economy. "We are working with the Andalusian public in mind, who are our only partners, and what we want is for both local councils and individuals to be able to return to normality as soon as possible."
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