The zero rent extensions apply to the retail, catering, culture, sports, tourism and transportation sectors.
Rent exemptions in April are foreseen for some 200,000 businesses that have remained closed to date. At the same time, an extension is possible in May (for those who will still be closed).
This is the plan of action that the Greek government intends to implement to help businesses survive until the trading market finally opens up. At the same time, it looks like the 40% cut in rents for the affected companies will continue in April.
The April Zero Rent Extension will affect the retail, catering, culture, sports, tourism and transportation sectors at a monthly cost of € 70 million. This means that if the government moves forward and sets zero rents for another two months, the amount will be 350 million euros (January to May).
Under these conditions, the Greek state will continue to issue compensation to property owners in the following amount:
1. Payment of compensation, which will amount to 80% of lost rent for April and May, applies to those individual owners who rent out their properties to companies that will not pay rent.
2. Exemption from the obligation to pay 40% of the monthly rent for April and May for companies still suffering from the financial crisis. The exemption will also apply to the rent of the primary residence of employees of these companies with whom they have been contracted to suspend their work, as well as to rent for student housing for the children of these employees.
3. Payment of compensation to taxpayers who lease their property to affected companies, and to employees of these companies whose employment contracts have been suspended. Compensation corresponds to 50% of the loss.
Until when can amendments be made to the statement about the “cut” rent:
• Until April 12, 2021, you can declare old leases that have expired by June 12, 2020.
• Until April 12, 2021, and especially November and December 2020, landlords with a 40% rent reduction may submit initial or revision COVID Declarations and Property Lease Information Reports.
• By April 19, 2021, reports will be submitted with corrections of errors and inaccuracies submitted between March and December 2020.
• Until April 12, 2021, companies (kiosks and catering) can submit a “COVID Declaration” and a “Property Lease Information Declaration” for November and December 2020, as well as for January 2021.
• Until March 29, 2021, companies operating discount stores (outlets), shopping centers or discount villages can file returns for January 2021.