Rent reduction: Mandatory “scissors” by 40% – Landlords react



Changes in the rent reduction regime due to the coronavirus crisis brought the new package of measures to support the economy and the market. The government’s decision to restore the mandatory rent reduction of 40% for the month of November to thousands of companies based in regional units that are at the level of “increased risk” provoked the reaction of property owners. But also in companies based in “surveillance” areas, the rent is reduced by at least 30% by agreement between landlord and tenant. The decision to reduce the rentAfter the new restrictive measures due to the pandemic, the government decided in November to apply a mandatory 40% reduction in rent for properties rented by state-owned companies or affected by coronavirus, based on the extended list of companies in April above, by employees of the above companies. and whose contract is suspended Student housing if the parent is an employee whose contract has been suspended. In particular, any business that rents real estate based in a regional unit located in the “red” for at least 14 days and is considered affected has the right to pay 60% of the rent in November. According to the new map of health safety and protection from COVID 19 infection, the 40% reduction in rent concerns companies based in the regions of Attica, Evros, Rodopi, Xanthi, Kavala, Drama, Serres, Kilkis, Thessaloniki, Halkidiki, Pelli, Imathia, Pieria, Florina, Kastoria, Kozani, Ioannina, Trikala, Larissa, Boeotia and Cyclades are active based on the expanded list of Activity Codes, which was implemented last April or is currently active. Read also: These are the KADs included in the new support measures. Regarding the optional reduction of rent by at least 30%, it concerns the companies based in regional units that are at the level of “supervision” and are included in the “affected KADs”. More specifically the areas: Etoloakarnania, Andros, Argolida, Arcadia, Arta, Achaia, Grevena, Evia, Evritania, Zakynthos, Ilia, Heraklion, Thassos, Thesprotia, Ithaca, Ikaria, Kalymnos, Karditsa, Karpathos-Kasos, Kea-Kythnos, Corfu, Kefallinia, Corinth, Kos, Laconia, Lassithi, Lesvos, Lefkada, Lemnos, Magnesia, Messinia, Messinia, Messinia , Paros, Preveza, Rethymno, Rhodes, Samos, Sporades, Syros, Tinos, Fthiotida, Florina, Fokida, Chania, Chios. What do the property owners say? The owners, for their part, express strong dissatisfaction with the expansion of the list. mandatory rent reduction in November. According to POMIDA, this list is based on April. At that time, not only the companies that were closed at that time (restaurants, shows, gyms, etc.) were included, but also all the hundreds of marketing and service activities due to the general traffic restrictions (via SMS, etc.). Today, however, these businesses will remain in normal operation! So what is the reason for extending the rent reduction to these? ”For mandatory rent reductions, landlords acknowledge that they are entitled to 30% of the loss with their tax liabilities, but, as they say, they are not entitled to“ any direct subsidy, as it would be right, or a reduction in liabilities, facilitation, regulation or any other immediate relief measure, such as so many others provided for so many other categories of taxpayers ”For the general lack of response to voluntary rent reductions, landlords blame the government and The problems are due to: – Firstly, the fragmentation (month-month for September and October) of the ministerial decisions so far that determine for which categories of leases the tax offsets will apply, instead of the whole legislated four months of September-December. completion of the posting of COVID-19 tax refunds still Mr. Follow the Google News and be the first to know all the news. See all the latest news from Greece and the world, at



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