I. Applicable provisions:
I. Partial payment or total exemption from rent payment:
According to the decision A.1228/14.10.2020 of the Ministry of Finance
“3. The provisions herein also apply to the case of the concession by the lessee to another of the use of the lease in exchange, and in particular in the case of subletting,to establish a business of par. 1.
In the case of the previous paragraph, the beneficiary of a partial exemption can only be the third party to whom the use of the lease is granted (sublessee) and who meets the conditions of the present and not the lessee, (note . our sublessor) with the reservation of the case where the tenant (note our sublessor) is entitled to a partial exemption from the payment of rent, in accordance with the provisions hereof.
The partial payment of rent to the lessee/sublessee, in accordance with the provisions herein, does not affect the main lease relationship”.
Iv. Beneficiary of the discount or compensation:
1one According to circular E.2184/19.11.2020 of the Governor of AADE Mr. Giorgos Pitsilis and the relevant issues related to the submission of the “Covid Declaration” retroactively for the months of March to August 2020 (note, but also due to the continuity of the measures, it also applies to the following months):
“9. With the Joint Ministerial Decision of the Ministers of Finance, Development and Investments, Labor and Social Affairs and Maritime and Island Policy A. 1228/2020 (B’ 4582) it was defined that the provisions on the reduction of rent by 40% are also applied in cases of subletting of real estate.
In this case beneficiary of the deduction of par . 2 of article 13 of the law4690/2020 (A’104) (note ours: 20% times 60% , i.e. 12% of the nominal rent) can only be the sublessor, subject to the assistance of the rent reduction conditions and in the person of the sublessor for his professional establishment, in which case the beneficiary of the discount of para. 2 of article 13 of Law 4690/2020 (A’104) is and the lessor for this lease”. months of November and December 2020
a) A. 1251/24.11.2020 as amended by decision A.1047/08.03.2021,
b) A.1274/17.12.2020 as amended by decision A.1048/08.03.2021 and
c) A. 1003/11.1.2021 always in conjunction with pol. 1162/22.08.2018
as beneficiaries of compensation are also “The sublessors , natural persons, who, based on the right to sublease, have entered into a sublease contract and collect a reduced sublease for the month of November and from now on from the contracting parties, sublessees, as required by law in the context of dealing with the effects of the COVID-19 coronavirus”.
3on According to decision A. 1030/18.02.2021), as beneficiaries of the compensation for January – February 2021 are also “The sublessors, natural or legal persons and legal entities, including the public law legal persons of subpar. 3 of para. 1 of article 68 of the law 4235/2014 (A’ 32), as well as private non-profit legal entities, which based on the right to sublease, they have entered into a sublease agreement and do not collect sublease for the months of January and February 2021 from the contracting parties, sublessees, as required by law in the context of dealing with the effects of the COVID-19 coronavirus”.
II. Based on the above provisions and due to continuous questions from owners, sub-lessees and sub-lessees, we list the following examples:
Example with a “closed” tenant ” or “affected” professional:
The owner of the shop (lessor) leases his shop to a professional (lessee) who is active with a KAD of activity “closed by government order” or “affected” and with the right to sublease it.
The lessee sublets the store to the entrepreneur (sublessee) who carries out an activity in it ” closed” or simply “affected”.
The sublessee is entitled to reduce by 40% or 100%, depending on the KAD of his activity, the subrent he pays to his tenant/sublessee.
Correspondingly, the tenant/sublessee is also entitled to submit a COVID declaration to receive 20% or 80% of the subrent, unless he is legal entity, in which case the sublessee’s “closed” business will receive 60% of the sublease.
Subsequently, the lessee/sublessee is also ENTITLED to request a reduction of the rent which he pays to his owner/lessor because he is independently entitled to a rent reduction, by 40% or even 100% depending on the KAD of his own activity, even though he himself does not carry out an activity that is characterized as “closed” or “affected” in the rented property .
Consequently the owner/lessor of the property is ENTITLED to submit a COVID declaration to receive compensation from the State of 20% or 80% of the agreed rent, unless it is a legal entity, in which case the lessee will receive 60% of the rent on a “closed” business.
Example with private tenant or non-“affected” professional.
The owner of the store (lessor) rents out the store to an individual, his relative or a pensioner, etc. who does not carry out a professional activity, or to an entrepreneur with a business license who does not belong to the “closed” or “affected” (lessee), and with the right to sublease it.
This tenant subleases the leased shop to an entrepreneur (sublessee) who carries out a “closed by state order” or simply “affected” activity in it.
The sublessee is entitled to reduce by 40% or 100%, depending on the KAD of his activity, the subrent he pays to his tenant/sublessee.
However, the lessee/sublessee DOES NOT HAVE THE RIGHT to request a reduction of the rent he pays to his owner/lessor because he is not entitled to a reduction of the rent on his own, as long as he does not carry out an activity that is characterized as “closed” or “affected”, and therefore he is obliged to pay him the full rent.
Consequently, the owner/lessor of the property is NOT entitled to submit a COVID declaration to receive compensation from the State, since is entitled to collect the entire rent.
