ECONOMY

Rent cut for shuttered shops

rent-cut-for-shuttered-shops

The 80% rental discount that Prime Minister Kyriakos Mitsotakis announced on Tuesday for January and February will concern the enterprises that were closed on Wednesday. Therefore this regards retail commerce, food service, cultural businesses, sport centers, gyms, tourism, transport and enterprises that will remain shut over Christmas by state order.

The rental reduction will concern retail stores regardless of whether they are utilizing the click-and-collect system or accept online and phone orders for delivery at home. Likewise, the measure will concern food service companies whether or not they offer any delivery or takeaway services.

The cut will benefit hotels, travel agencies and transport companies that have been hit particularly hard by the ban on travel between regional units. Culture and sports enterprises – such as theaters, cinemas, music stages, gyms, ski centers etc – stand to benefit from the rental cut too.

More than 200,000 corporations in all those categories are now guaranteed an 80% cut to their rental expenses whatever the course of the pandemic and the relevant measures over the next couple of months.

The measure for the coverage by the state of 60% of the rent means that out of the full rental amount, 20% will be payable by the tenant and 60% by the state, so that the landlord only loses 20%.

After the submission of the “Covid rent” applications by landlords on the Independent Authority for Public Revenue’s online platform, the state will immediately credit their bank accounts with the 60% compensation, which will be tax exempt and cannot be confiscated or offset against any debts to the state.

For the companies that lease out properties to other enterprises, there is no provision yet about any compensation toward the losses they have incurred. However, Finance Ministry officials have not ruled out the possibility that they will also be compensated for lost revenues.

For workers in contract suspension, the rental cut of 40% remains, including the cost of any dependent children studying in other cities.