POMIDA’S QUICK GUIDE TO CORONAVIRUS RENT REDUCTION. INDIFFERENCE OF THE AUTHORITIES FOR THE OWNERS!

POMIDA notes with intense disappointment not only the exclusion of owners from any substantial support measure (e.g. housing landlords still subject to the reduction of 25%!), but also the complete indifference of the competent actors to the establishment of a specific method of procedural documentation and announcement of the right to rent reduction to the affected landlords. The result of leaving the owners to their fate is that the claim prevails in practice that the reduction of the rent of the professional leases will be done allegedly by only showing the owners the gazette of the PNP!

“>POMIDA is also waiting for the finalization of the essential measures that the government will take for their financial support, according to the recent official commitment of the Ministry of Finance. POMIDA’s proposals are:

*All rents collected at a reduced rate should be tax-free. 

*Or subtract 50% of the cuts from the owners’ tax burdens.

* To establish a substantial discount on the early payment of ENFIA 2020.

The following is a short POMIDA’s guide to rent reductions due to coronavirus. More information and documentation at www.pomida.gr

What applies to rent reduction due to coronavirus

A short guide of POMIDA

Which leases apply: The March and April 2020 leases for businesses that were compulsorily closed and the April rents for those designated as affected.

WHAT ARE TENANTS RIGHT: Traders & professionals: 40% reduction in the rent of their professional accommodation :  40% reduction in the rent of their main residence, and the student residence of their child studying in another city

Tenants or spouses: The right to a reduction exists only when the suspended employee is himself declared as a tenant of the residence in the lease and in the TAXISNET Leasing application. In the case of co-tenants (usually spouses) where only one of them is entitled to the reduction, this will be calculated on his own share of the rent, i.e. the reduction will be 20%. When the suspended party is the tenant’s spouse, so typically they are not entitled to any reduction, POMIDA proposes that a 20% rent reduction should also apply there.

Necessary condition for the validity of exercising the right of reduction:

The submission of a responsible declaration to “ERGANI” by all without exception professional tenants, even those who do not employ staff, or the above employed tenants, with the name and tax number of the owner and the address of the property, and thedelivery to the lessors of a copy of this declaration!

If the responsible declaration is not submitted: ALL LOSE: The tenants lose the 40% discount and owe the full rent because the arbitrary payment of reduced rent is unacceptable and invalid. and they will get all the tax reliefs provided and will ultimately be taxed for the entire rent which they will be forced to claim in court and without any deduction!

WHAT OWNERS ARE ENTITLED TO: *Four-month interest-free suspension of current debts.

*25% reduction of March current debts, but so far only for those who have lost rents from business leases!

*The Ministry of Finance has officially announced that it is considering introducing favorable tax arrangements for property owners, who are paid only 60% of the rent, based on the measures it implements, i.e. depending on the lost rents.

Where are real estate landlords grossly unfair in relation to tenants?

*When their incomes are cut as landlords, no rent reduction is foreseen for them for their rented main residence or their child’s student residence!

p style=”text-align: justify;”>*When house rents are cut, there is no provision for a 25% reduction in their debts!