Firstly the piecemealness (literally “torture of the drop”, month by month for September and October) of the ministerial decisions so far that determine for which categories of leases offset tax refunds will apply, instead of covering the entire legislated September-December quarter, and without so far any declaration or indication of what will apply in November and December.
Secondly the non-completion of the posting of the COVID tax refunds even for the first quarter of March-June, although the application for the declaration of the October reductions has already been opened.
These problems must be addressed immediately by the Ministry of Finance, as they have created justifiable confusion and mistrust among property owners in entering into rent reduction agreements, though they would desire it, and reasonable remonstrances of their tenants, especially of the commercial sector which ought from the outset to have been determined to cover the whole of the statutory quarter.
continuous steps of POMIDA, a series of serious issues arising from the forced rent reductions of 40% in broad categories of leases, commercial and residential, are being regulated. “text-align: justify?”>
Specifically, the above GTC defines the following:
No. A. 1228, Official Gazette B 4582/16.10.2020
Regulation of special issues with more specific terms and conditions for the application of the provisions regarding the partial payment of rents as part of the measures related to the spread of the COVID-19 coronavirus.
THE MINISTERS
FINANCIAL –
DEVELOPMENT AND INVESTMENT –
LABOR AND SOCIAL AFFAIRS –
SHIPPING AND ISLAND POLICY
Having regard to:
……………………………….. ………………………………..
We decide:
Article 1
Beneficiaries of a partial exemption from the payment of professional leases
- The lessees of professional leasesto establish businesses , for which special and extraordinary measures have been taken to suspend or temporarily ban operation for preventive or repressive reasons related to the COVID-19 coronavirus, areexempted from the obligation to pay 40% of the total rent for the months of March, April , May and June 2020, in derogation of the written provisions on leases and in accordance with the provisions of the second article of the Legislative Content Act of 20.03.2020 (A’ 68), which was ratified with article 1 of Law 4683/2020 (A’ 83) , as replaced by article 4 of Law 4690 /2020 (A’ 104) and article 15 of Law 4690/2020 (A’ 104).
The lessees of commercial leases to be installed businesses, which have been seriously affected by the epidemic of the corona virus COVID-19, by virtue of the decisions issued under the authority of paragraph 2 of article 1, paragraph 2 of article 2 and paragraphs 1 and 2 of article 3 of the Legislative Content Act of 11.3.2020 (A΄ 55), are exempted 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 .
The lessees of commercial leases for the establishment of businesses who have been financially affected by the epidemic of the coronavirus COVID-19, by virtue of the decisions are issued under the authority of par. 5 of the second article of the Act of Legislative Content from 20.03.2020 (Α΄ 68), exempted from the obligation to pay 40% of the total rent for the months of June, July, August and September 2020 , in derogation of the written provisions on leases.
- This is also applicable in the case of a professional lease for the establishment of a business, for which completely necessary auxiliary spaces of other properties are used, in which the activities of the business of par. 1 are carried out. The vehicle parking spaces of company for the parking of the executives’ vehicles are considered completely necessary auxiliary spaces, when they are in an enclosed space, i.e. closed from every side, from every direction and as long as this space is listed in the E9 statement as an auxiliary space.
- The defined 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 subletting, for the establishment of a business of par. 1. In the case of the previous paragraph, the beneficiary of a partial exemption may only be the a third party to whom the use of the lease is granted (sublessee) and to whom the conditions herein apply and not the lessee, with the exception of the case where the beneficiary of a partial exemption from the payment of rent, in accordance with the provisions herein, is also the lessee .The partial payment of rent to the lessee/sublessee, in accordance with the provisions herein, does not affect the main lease relationship.
Article 2
Beneficiaries of partial exemption from the payment of principal residence leases
- The lessees of a principal 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 par. 1 of the article 1 hereof, whose employment contract has been temporarily suspended due to measures to prevent the spread of the COVID-19 coronavirus, are exempted from the obligation to pay 40% of the total rent for the months of March, April , May, June, July, August and September 2020, as the case may be. 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 COVID19 coronavirus.
- The provisions in par. 1 of this article also apply to the case of the lessee granting to another the use of the lease with in return and especially in subletting. 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 (subtenant) is granted for the lease of the main residence and who meets the conditions of the present and not the tenant, with the exception of the case where the beneficiary of a partial exemption from the payment of rent, according to the present provisions, the lessee is also independent. The partial payment of rent to the lessee/sublessee, in accordance with the provisions herein, does not affect the main lease relationship.
Article 3
Rent Reduction Beneficiaries for Conditional Student Dependent Leases
- The exemption from the obligation to pay 40% of the total rent, in derogation of the written provisions on leases,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 his place of permanent residence, as long as at least one parent is an employee of an enterprise referred to in article 1 hereof and whose work has been temporarily suspended the employment contract due to the measures to avoid the spread of the COVID19 coronavirus. The exemption is valid for the months of April, May, June, July, August and September 2020, as the case may be.
- The provisions in paragraph 1 of this article also apply to the case of concession by the lessee to another of the use of the lease in exchange and in particular in subletting. In the case of the previous paragraph, the beneficiary of a partial exemption may 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, with the exception of the case where the beneficiary of a partial exemption from the payment rent, in accordance with the provisions herein, is also the lessee’s responsibility. The partial payment of rent to the lessee/sublessee, in accordance with the provisions herein, does not affect the main lease relationship.
Article 4
Beneficiaries of reduction of hire for seafarers with a suspended charter
- Seafarers whose chartering contract is suspended in accordance with par. 2 of article sixty-three of the Legislative Content Act (A’ 75) from 30.03.2020, 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 the months of April, May, June, July, August and September 2020, in accordance with the provisions of the relevant regulatory acts, in derogation of the provisions on leases.
- The provisions in par. 1 of this article also apply to the case of the concession by the lessee to another of the use of the lease and in particular to subletting. 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), subject to the conditions of the present and in the person of the lessee. The partial payment of rent to the lessee/sublessee, in accordance with the provisions herein, does not affect the main lease relationship.
Article 5
Other arrangements
- In the event that the conditions for partial rent payment are met, in accordance with the provisions in articles 1 to 3 hereof, and the rent has been paid earlier than the month for which partial payment is specified,40% of the rent for which the lessee is exempted from the payment obligation is set off in the next rent payments. In the case of non-existence of subsequent rent payments due to the termination of the lease relationship, the monetary amounts of the exemption are sought as unduly paid amounts.
- In the case where the lease relationship involves more tenants and the conditionspartial rent payment, in accordance with the provisions of articles 1 to 3 hereof,are not applicable for all tenants, with the exception of the provisions for the case of a spouse or other party to a cohabitation agreement , the partial rent payment is calculated proportionally according to the beneficiary tenant’s participation share in the rent. rent is paid at the end of the lease or at shorter intervals and in any case longer than a month, the exemption from articles 1 to 3 of 40% of the total rent for the prescribed months is calculated proportionally. li>
- The provisions in paragraph 1 of article 2 and in paragraph 1 of article 3 of this apply for the entire month for which partial rent payment is provided,as the case may be, regardless of the days per month during which the employee’s employment contract has been temporarily suspended. >
a) the Bodies of the General Government, as defined in para. 1 of article 14 of Law 4270/2014 (A΄ 143),
b) the other legal public law entities (N.P.D.D.), c) Private Law Legal Entities (N.P.I.D.) belonging to the state or to a N.P.D. D. or OTA – in the sense of achieving a state or public or self-governing purpose, supervision, appointment and control of the majority of their Management, or are regularly subsidized, in accordance with the written provisions, from state resources at least fifty percent (50%) of their annual budget,
d) the public enterprises and organizations of Chapter A΄ of .gr/laws/law/2445/dhmosies-epixeirhseis-kai-organismoi-d-e-k-o”>n. 3429/2005 (A’ 314), regardless of whether they have been exempted from its application and
e) businesses which fall under Chapter B of the immediately above law.
- The following are excluded from the application of this, in the case in which they are tenants:
a) the bodies of the General Government, as defined in paragraph 1 of article 14 of Law 4270/2014,
b) legal entities under public law (N.P.D.D.), p>
c) the Legal Entities of Private Law (N.P.I.D.) belonging to the state or to a N.P.D. .D. or OTA – in the sense of achieving a state or public or self-governing purpose, supervision, appointment and control of the majority of their Management – or are regularly subsidized, in accordance with the written provisions, from state resources of at least fifty percent (50%) of their annual budget ,
d) the public enterprises and organizations of Chapter A of n. 3429/2005 (A’ 314), regardless of whether they have been exempted from its application and
e) businesses which fall under Chapter B of n. 3429/2005 (A΄ 314).
Article 6
Entry of force
This decision is valid from the entry into force of the Act of Legislative Content “Urgent” from 20.3.2020 Measures to address the consequences of the risk of spreading the covid-19 Coronovirus, supporting society and entrepreneurship and ensuring the smooth operation of the market and public administration “(A68), which was ratified by Article 1 of Law 4683/2020 (A΄ 83). October 2020
Ministers
Finance Christos Staikouras
Deputy Minister of Finance Theodoros Skalakakis
Undersecretary of Finance Apostolos VESSYROPOULOS
Spyridon-Adonis Georgiadis Development and Investment and Investment
IOANNIS PLAKIOTAKIS Island Policy
