This content was published in the period between 21 January 2019 and 8 July 2021.

Temporary discount for fixed rental costs in vulnerable sectors


The Government has proposed a temporary discount for fixed rental costs in vulnerable sectors to mitigate the economic impact of the COVID-19 virus outbreak. The proposal is based on an agreement between the Government, the Centre Party and the Liberal Party.

The COVID-19 virus outbreak has rapidly had a major economic impact across Sweden. The situation is now very serious for large parts of the hotel and restaurant sector, and the durable consumer goods sector. In its additional amending budget, the Government is allocating support of SEK 5 billion to reduce fixed rents for vulnerable sectors such as durable consumer goods, hotels, restaurants and certain other activities.

Under this initiative, landlords who reduce fixed rents for tenants in these vulnerable sectors during the period of 1 April to 30 June will be able to apply for support to compensate part of the rental reduction. The compensation provided will be at most 50 per cent of the reduction in fixed rent, but at most 25 per cent of the original fixed rent.

Compensation can be applied for after the fact from county administrative boards. The Government is currently working on producing a regulatory framework to ensure it is in place as soon as possible. As this initiative involves state aid, it must be approved by the EU. More information will follow. 

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