If you wish to capitalize your unemployment benefit to start a business, any expense incurred to acquire assets or rights that form part of the business’s equity as assets (for example, real estate, machinery or computer equipment, furniture, merchandise, leasing, etc.) and that are necessary for launching the activity is considered an investment.
You may allocate the capitalized benefit to expenses for starting the business, as well as to the payment of fees and taxes.
You may also allocate up to 15% of the capitalized benefit amount to the payment of specific advisory, training, and information services related to the activity you are going to undertake.
Additionally, expenses anticipated during the first three months of operation are considered an investment: tax charges, rent, premises conditioning, etc.
2. DO I NEED TO JUSTIFY THE INVESTMENT OF THE LUMP-SUM PAYMENT? DO I HAVE TO RETURN IT IF I DO NOT JUSTIFY IT?
Once you have received the capitalization amount, you must start the activity within one month and submit documentation proving that you have invested the money in said activity. You must allocate the amount received to the planned activity, as stated in the project report that forms part of the file.
If the activity you have started differs from the one stated in the application and report, but complies with the applicable regulations, you must submit a new report and any supplementary documentation required by the State Public Employment Service (SEPE).
Three possibilities may arise:
1. The new activity meets the legal requirements, the project is considered viable, and the amount required for its launch matches the initially granted amount. In this case, the recognized right is maintained.
2. The new activity meets the legal requirements and the project is considered viable, but the granted amount does not match the new report. In this case, the State Public Employment Service will issue a new resolution adjusting the recognized amount to the new project, and if there are differences between the two amounts, it will claim any undue payments that apply.
3. You do not meet the legal requirements, nor is the new project considered viable. In this case, the State Public Employment Service will claim the entire amount paid as a lump-sum payment.
Undue payment of the total net capitalized amount paid to you will be claimed in the following cases:
If you do not start the activity and do not sufficiently justify the reason.
If you do not allocate the granted amount to your incorporation as a member or worker of a cooperative or labor company.
If you do not allocate the amount to carrying out self-employment activity.
If you do not apply or divert the unemployment benefit to purposes other than the activity subject to capitalization, this may be considered a very serious offense.
This is sanctioned with the loss of unemployment benefits and, furthermore, with exclusion from the right to receive any financial benefit and, where applicable, employment promotion assistance for one year.
SOURCE: Frequently Asked Questions section of the website https://www.sepe.es