LAW 4690/2020 ON RENT REDUCTION AND TAX RELIEF FOR LANDLORDS HAS BEEN PUBLISHED!

This law contains regulations both in relation to the issue of the extension, and termination, as we hope, of the rent reduction, as well as the tax relief of real estate lessors from these reductions. 

A. EXTENSION OF THE RENT REDUCTION for May-June and for July-August.

Article 4 Extension of the rent reduction for commercial leases, principal residence leases , leases of dependent members – students and seamen leases for the month of May 2020.

1. The second article of the Legislative Content Act from 20.03.2020 (A’ 68), which was ratified by Article 1 of Law 4683/2020 (A’ 83) is replaced by the entry into force of the PNP as follows:

“Article Two Rent Reduction of Professional Leases and Principal Residence Leases

1. The lessee of a professional lease to install business, for which special and extraordinary measures have been taken to suspend or temporarily prohibit operations for preventive or repressive reasons related to the COVID-19 coronavirus, is exempted from the obligation to pay 40% of the total rent for the months of March, April and May 2020, in derogation of the written provisions on leases. Stamp duty and VAT as the case may be are recalculated and imposed on the rent resulting from the above partial payment. The partial non-payment of the rent of the first paragraph does not give rise to the right to terminate the contract at the expense of the lessee or any other civil claim. The provisions in the previous paragraphs also apply to the case of tenants who have been granted the use of a thing, movable or immovable, or both together, intended exclusively for professional use in the context of financial leasing, and concerns businesses for which special and extraordinary measures have been taken to suspend or temporarily ban operations for preventive or repressive reasons related to the COVID-19 coronavirus, through the extension of the repayment time of the above rate of 40% in up to twelve (12) monthly installments for contracts real estate leasing and in up to six (6) monthly installments for mobile leasing contracts through lease restructuring agreements entered into by leasing companies. The increased capital depreciation rents payable at the start of the financial lease are repaid in full on the agreed dates.
2. Paragraph 1 also applies to lease contracts for a main residence, in which the lessee is an employee or a spouse or the other party to a cohabitation agreement of an employee in a company of the same paragraph, whose employment contract has been temporarily suspended due to the measures to avoid the spread of the COVID-19 coronavirus. For the application of the previous paragraph, it is required that the employee, regardless of whether he or his spouse or the other party to a cohabitation agreement has been contracted as a tenant, was associated with an employment relationship with the company at the time of the start of the application of the special and extraordinary suspension measures or temporary prohibition of operation for preventive or repressive reasons related to the COVID-19 coronavirus.
3. The lessee of a commercial lease to establish a business, which has been severely affected by the epidemic of the COVID-19 coronavirus, by virtue of the decisions which have been issued under the authority of par. 2 of article 1, par. 2 of article 2 and Issue A’ 104/30.05.2020 GOVERNMENT GAZETTE 1889 par. 1 and 2 of article 3 of 11.3.2020 Act of Legislative Content (A’ 55), as ratified by article 2 of Law 4682/2020 (A’ 76), is exempted from the obligation to pay 40% of the total rent for the months of April and May 2020, in derogation of the texts provisions on leases, in accordance with the other provisions in par. 1. The provisions in the previous paragraph also apply to the case of tenants to whom the use of a thing, movable or immovable, or both together, intended exclusively for professional use in the context of financial leasing, and concerns businesses of the first paragraph, through the extension of the repayment time of the above percentage of 40% in up to twelve (12) monthly installments for property leasing contracts and in up to six (6) monthly installments for mobile leasing contracts through lease restructuring agreements entered into by leasing companies. The increased capital depreciation rents payable at the commencement of the finance lease are repaid in full on the agreed dates. The provisions of the first paragraph also apply to the rental contracts of a main residence, in which the lessee is an employee or the spouse or the other party to a cohabitation agreement of an employee in a company of the first paragraph whose employment contract has been temporarily suspended due to the measures to avoid the spread of the COVID-19 coronavirus -19, subject to the conditions of par. 2.
4. By joint decision of the Ministers of Finance, Development and Investments and Labor and Social Affairs, following a proposal by the Governor of the Independent Public Revenue Authority, the procedure, the necessary supporting documents, the most specific terms and conditions, as well as any other detail for the implementation of this.”
5. Article 3 of Law 4684/2020 (A’86) is replaced as follows:
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“Article 3 Rent reduction for conditional student leases

1. The exemption from the obligation to pay 40% of the total rent for the months of April and May 2020, in derogation of the written provisions on leases, in accordance with the provisions of paragraphs 1 and 3 of the second article of the Legislative Content Act of 20.3.2020 (A’ 68), as ratified by article 1 of Law 4683/2020 (A’ 83), also applies to real estate lease contracts to cover the housing needs of a child – a dependent member, who attends a higher education institution outside the of his place of permanent residence, as long as at least one parent is an employee in a company of par. 1 or par. 3 of the above article, and whose employment contract has been temporarily suspended due to the measures to avoid the spread of the COVID-19 coronavirus, observing and of the other conditions of the same article.
2. By joint decision of the Ministers of Finance, Development and Investments and Labor and Social Affairs, following a proposal by the Governor of the Independent Public Revenue Authority, the procedure, the necessary supporting documents, the most specific terms and conditions, as well as any other detail for the implementation of this.”
3. Paragraph 4 of the sixty-third article of the Legislative Content Act dated 30.03.2020 (A΄ 68), ratified with article 1 of Law 4684/2020, is replaced as follows: “4. Seafarers whose chartering contract is suspended in accordance with par. 2 or their spouse or the other party to a cohabitation agreement are exempted from the obligation to pay 40% of the total rent of the main residence for the months of April and May 2020, in derogation of the written provisions on leases. By a joint decision of the Ministers of Finance, Development and Investments and Maritime and Island Policy, following a recommendation by the Governor of the Independent Public Revenue Authority, the procedure, the necessary supporting documents, the most specific terms and conditions, as well as every other detail for the implementation of the present.”.

Article 15 Extension of the rent reduction for professional leases, principal residence leases, dependent member – student leases and seafarer leases and in the month of June 2020.

1. In the second article of the Legislative Content Act of 20.3.2020 (A΄ 68), which was ratified by Article 1 of Law 4683/2020 (A’ 83), as applicable, paragraph 5 is added as follows: “5. The lessee of a business lease to establish a business for which special and extraordinary measures of suspension or temporary prohibition of operation have been taken during the months of March, April, May 2020 or are taken in the month of June 2020 for preventive or repressive reasons related to the COVID-19 coronavirus, is exempted from the obligation to pay 40% of the total rent also for the month of June 2020, in derogation of the written provisions on leases, in accordance with the provisions of the second and third paragraphs of par.1.

(Extension to July and August in certain categories of businesses that continue to be affected).

The lessee of a commercial lease to establish a business, which continues to suffer financially due to the appearance and spread of the COVID-19 coronavirus, is exempted from the obligation to pay 40% of of total rent for the months in which it is affected and at the latest until the month of August 2020, in derogation of the written provisions on leases, in accordance with the provisions of the second and third paragraphs of par. 1. By decision of the Minister of Finance, after a proposal of the Governor of the Independent Public Revenue Authority (AADE), the affected businesses of the previous subsection are specified by sector and by month, as well as any other necessary detail for the implementation of this. The provisions herein also apply to principal residence lease contracts, in which the lessee is an employee or the spouse or the other party to a cohabitation agreement of an employee in a company of the first and second paragraphs, whose employment contract has been temporarily suspended due to the measures to avoid his dispersion of the COVID-19 coronavirus, subject to the conditions of par. 2.

2. In article 3 of Law 4684/2020 (A΄ 86), paragraph 3 is added as follows:

“3. The provisions in par. 1 are also valid for the month of June 2020, as long as at least one parent is an employee of an enterprise of the first paragraph of par. 5 of the second article of the Act of Legislative Content from 20.3.2020 (A΄ 68), which was ratified by Article 1 of Law 4683/2020 (A’ 83), and whose employment contract has been temporarily suspended due to the measures to avoid the spread of the COVID-19 coronavirus, or at the latest until the month of August 2020 if at least one parent is an employee in a company of the second paragraph of paragraph 5 of the above article, as determined by sector and month by the decision of the same article, and whose employment contract has been temporarily suspended due to the measures to avoid the spread of the COVID-19 coronavirus, observing the other conditions of par. 2 of the same article.”

3. At the end of par. 4 of the sixty-third article of the Legislative Content Act of 30.3.2020 (A΄ 68), ratified by article 1 of Law 4684/2020, as applicable, is added par. 4.a as follows:

“4.a. Seafarers whose chartering contract is suspended in accordance with par. 2 or spouse or the other party to a cohabitation agreement are exempted from the obligation to pay 40% of the total rent of the main residence for as long as the chartering contract is still suspended and at the latest until the month of August 2020, in derogation of the written provisions on leases. With the decision of the second paragraph of par. 4, the matters of application of this are also regulated.”

B. MEASURES TO SUPPORT LANDLORDS FROM NON-COLLECTION OF RENT

Article 13. Measures to support landlords from non-collection of rent as required by law in the context of dealing with the effects of the COVID-19 coronavirus

1. Article 72 of Law 4172/2013 (A΄ 167) is added .42 as follows:

“42. It does not constitute income and is not subject to income tax and special solidarity contribution of article 43 A of the C.F.E. the amount of rent that was not collected or is not collected as required by law in the context of dealing with the effects of the COVID-19 coronavirus, for all the months that the measure of reduced payment on the monthly rent was in force or will be in force at a rate of forty percent (40% ).».

2. The persons referred to in par. 42 of article 72 of Law 4172/2013, as added by par. 1, if they received a reduced rent of at least 40%, have the right to a deduction of an amount equal to a percentage 20% on 60% of the rents of those months calculated before the above reduction, from debts with a final payment date to the tax authority from 31.7.2020 onwards, except for debts from installment payment arrangements/facilities, debts in favor of a foreign public and from the recovery of state aid.
3. By decision of the Minister of Finance, following the recommendation of the Governor of AADE, every necessary detail for the implementation of the above provisions may be regulated.

Article 14 Extension of deadlines for the payment of confirmed debts and installment arrangements/partial payment facilities, suspension of collection of arrears and 25% set-off with confirmed debts for real estate lessors

1. For natural persons who rent real estate to persons who, as part of the measures to deal with the effects of the COVID-19 corona virus, are exempted from paying a rate of forty percent ( 40%) of the agreed rent, the deadlines for the payment of the confirmed debts and installments of arrangements/facilities for partial payment to the Tax Administration are extended and the collection of their overdue debts is suspended as follows:

a) for those who rent properties to tenants who are exempt from paying 40% of the rent during the months of March and April 2020 and the due dates for paying their debts and installments were within these months, these are extended until 31.8.2020 and correspondingly the collection of their overdue debts is also suspended,

b) for those who rent properties to tenants who are exempt from paying a 40% rate of the rent during the month of May 2020 and the final dates for payment of their debts and installments were within the same month, these are extended until 30.9.2020 and correspondingly the collection of their overdue debts is also suspended,

c) for those who lease properties to tenants who are exempt from paying 40% of the rent during the month of June 2020 and the due dates for paying their debts and installments were within the same month, these are extended until 30.10.2020 and correspondingly the collection of their overdue debts is also suspended.

2. For the period of suspension, interest and late payment surcharges are not calculated.
3. Twenty-five percent (25%) on the debts of c.b and c ΄ of par. 1 that may have been paid and repaid from 11.3.2020 until the entry into force of this, or will be paid on time, is set off against other confirmed debts or installments of arrangements/facilities for partial payment to the Tax Administration, which have final payment dates from 31.7 .2020 and beyond. Especially for the lessors of par. 2 of the second article of the PNP from 20.3.2020 (A’ 68), as ratified by law 4683/2020 (A’ 83), the provisions of the previous paragraph are also applied to debts with a final date within the months of March and April 2020, which were paid and paid on time. Especially for the lessors of article 3 of Law 4684/2020 (A’ 86), the provisions of the first paragraph are also applied to debts with a due date within the month of April 2020, which were paid and repaid on time. In the case of debts that are in a regime of settlement/facilitation of partial payment, a percentage of twenty-five percent (25%) of the amount of the installment of the settlement is deducted. Excluded from this benefit are debts from VAT and withholding taxes that have not been subject to a partial payment adjustment/facilitation regime, as well as debts arising from the recovery of state aid and debts owed to a foreign State. The provisions of par. 1 which provide for the extension of payment deadlines, as well as the provisions of this paragraph, do not apply to installments of installment arrangements based on a court decision or a temporary order.
4. By decision of the Minister of Finance, following the recommendation of the Governor of AADE, may regulate any details necessary for the application of the above provisions.