ECONOMY

Mandatory 40% rental reduction for companies in red and gray zones

mandatory-40-rental-reduction-for-companies-in-red-and-gray-zones

All enterprises in the country’s emergency (red) or lockdown (gray) zones, belonging to the 522 activity code numbers (KAD) – i.e. are directly affected by the pandemic – are entitled to a mandatory 40% reduction in their November rent.

There is also a 40% rental cut for their employees and their employees’ children studying in cities away from home.

The tax authorities will reimburse landlords for 30% of the revenues lost.

For the rest of the country’s enterprises, there is always the option of negotiating a rent reduction by at least 30% between the landlord and the tenant, which the tax authorities will also offset up to an extent.