Justice reviews the Covid aid granted to the Sand and Sea resort

The Contentious-Administrative Chamber, Second Section, of the High Court of Justice of the Canary Islands, in Santa Cruz de Tenerife, will review the Covid Line grant awarded to Sand and Sea Resorts, S.L. The Technical General Secretariat of the Ministry of Economy, Industry, Trade and Self-Employed ordered on September 29, 2026, the referral of the administrative file to the court, a resolution published in the Official Gazette of the Canary Islands no. 202, of October 8, 2026, section V (Other announcements), page 36587, with reference 3489.

The file travels to the TSJ due to appeal 259/2026

The Resolution of September 29, 2026, of the Technical General Secretariat orders the referral to the Contentious-Administrative Chamber, Second Section, of the High Court of Justice of the Canary Islands of the administrative file regarding the presumed dismissal of the administrative appeal filed against the Resolution of July 11, 2025, of the General Directorate for Economic Promotion and Diversification.

That regional resolution agreed upon the granting and payment to Sand and Sea Resorts, S.L. of the Covid Line grant for direct aid to self-employed persons and companies. The litigation is processed as appeal no. 259/2026, filed by the appellant entity itself.

The Chamber’s agreement that leads to the referral is dated September 22, 2026, and is adopted by virtue of articles 48 and 49 of Law 29/1998, of July 13, regulating the Contentious-Administrative Jurisdiction.

A state aid for business solvency

The disputed grant comes from the line provided for in Title I of Royal Decree-Law 5/2021, of March 12, on extraordinary measures to support business solvency in response to the COVID-19 pandemic, financed by the Government of Spain and published in the BOE no. 62, of March 13, 2021.

In the Canary Islands, that line was developed through Decree-Law 6/2021, of June 4, which regulates the granting of subsidies within the regional scope (BOC no. 115, of June 5, 2021). The distribution was organized into two lines:

• Line 1: self-employed persons who pay taxes under the objective estimation method in the IRPF.
• Line 2: self-employed persons, companies, and groups of companies whose volume of operations in IGIC and VAT fell by more than 30% in 2020 compared to 2019.

The amount of the aid received by the entity is not detailed in the announcement. Decree-Law 6/2021 sets the minimum amount for Line 2 at 4,000 euros, requires a simplified justification account between 4,000 and 100,000 euros, and an auditor’s report above that figure.

Summons to interested parties and nine-day deadline

The announcement is published under article 45.1.a) of Law 39/2015, of October 1, on the Common Administrative Procedure of Public Administrations, which allows for notification via the official bulletin.

• Who: those appearing as interested parties in appeal no. 259/2026.
• Where: Contentious-Administrative Chamber, Second Section, of the High Court of Justice of the Canary Islands, in Santa Cruz de Tenerife.
• Deadline: nine days from the day following the publication of the resolution.
• Signature: the Technical General Secretary, Marcos Barrera González.

Why it matters

The case opens the door to judicial review of one of the largest volumes of public aid distributed during the pandemic. The Covid Line mobilized state funds transferred to the autonomous communities: for Line 2.1 of the Balearic Islands and Canary Islands alone, 650,000,000.00 euros were allocated, as stated in the Official Bulletin of the Canary Islands no. 188, of September 18, 2026. The court’s decision will establish criteria on how the administrative appeals of the Canarian beneficiaries were resolved and on the legal certainty of subsidies already paid.

Source: Official Bulletin of the Canary Islands, no. 202, of October 8, 2026, section V (Other announcements), page 36587 (official reference: 3489).