News

The issue of rents which will not be collected by property owners due to coronavirus support measures is in the gray zone. Although it has been clarified how much rent should be paid by the affected companies, critical details of the measure have not been clarified.

More specifically, according to what is provided in an Act of Legislative Content:

Businesses that have been temporarily shut down by administrative order, such as restaurants and shops, are entitled to pay 60% of the rent for their business premises for the month of March and for the month of April. What has not been clarified is what happens in cases where the professional has already paid the rent for March (the relevant provision was introduced at the end of March). Will the extra amount paid in March be offset by the April rent reduction or will the rent reduction only apply to April?

- Employees of companies that were decommissioned by administrative order are entitled to pay for the months of March and April reduced rent for their main residence. The rent they are entitled to pay is 60% of what is agreed with the lessor. In this case, too, it has not been clarified what will happen in cases where the March rent has already been paid.

Another issue and uncertainty of the owners of the above properties is, however, how they will be taxed for the rents that they will not receive due to their extraordinary reduction. Although it makes sense, according to experienced tax experts, that rents that are not collected and are not going to be collected should not be taxed, this is not self-evident. They bring, for example, the issue of uncollected rents, which in order not to be taxed, the landlord who has not received them must have appealed, such as the application for a payment order, the lawsuit for expulsion from the lease, etc.

For its part, the federation of property owners (POMIDA) has raised the issue of uncertainty for owners. What they are asking for is 60% of the rents that will be collected not to be taxed.

The issue of rents has, in any case, caused confusion in the relationship between landlords and tenants. Many landlords are reportedly being informed by commercial tenants that they will not pay any rent for April and that they will try to cover the relevant amount in installments in the future.

SOURCE: Capital.gr