FINANCE

Rental cut for April and May?

rental-cut-for-april-and-may

The government is preparing to extend the exemption of some 200,000 enterprises from paying commercial rent for April and possibly even May (for those that will remain shuttered), so as to help them survive upon reopening. The 40% rental cut for enterprises suffering but still operating will likely be extended into next month.

The continuation of the 100% rental relief – with landlords compensated by the state – concerns the sectors of retail commerce, food service, culture, sports, tourism and transport. The cost of the measure amounts to about 70 million euros per month, which means that if the government proceeds with the extension of the measure for another couple of months, the cost this year will run to €350 million (from January to May).

Landlords will continue to receive 80% compensation if they are individuals who rent their assets to shuttered companies, while also receiving 40% less for assets rented out to people who work for companies whose operation has been suspended – the same applies to any students who are dependent on them.

Tuesday saw the start of the flow of state credit into the bank accounts of property owners for rental losses incurred in January; today the state will also start paying compensation for the reduced rents of November and December. During the week the Independent Authority for Public Revenue will use dues to landlords for the period from March to December 2020 to offset any tax obligations they may have.

The federation of property owners (POMIDA) reported that Deputy Finance Minister Apostolos Vesyropoulos said payments will top €70 million and concern more than 150,000 taxpayers. He added that after the necessary stage of corrections, the offsetting process for last year’s dues will begin.

Vesyropoulos said the ministry has also made plans for resolving all outstanding issues that concern landlords regarding the forced reduction of rents, noting that there will soon be some formal announcements on the matter.