Extension of reintroduced rent rebate
In January this year, the Government announced that the State aid to businesses that rent properties would be reintroduced for the first quarter of 2021. As a result of the increased community transmission and the negative economic impact on many businesses, the Government now also proposes that this rent rebate be extended for the period 1 April–30 June 2021. The Government’s proposal is based on an agreement between the government parties, the Centre Party and the Liberal Party.
On 10 March, the Government notified the European Commission of the rent rebate for the period January–March. On Wednesday, the Commission announced its approval and the Government therefore intends to adopt the legal framework in the near future. The Government, the Centre Party and the Liberal Party have also agreed to extend the rent rebate for the period 1 April–30 June 2021. However, the decision on this extension will have to be taken at a later date, following further approval by the European Commission.
A landlord who, during the period April–June, chooses to provide a rebate for rental costs for tenants in vulnerable sectors will be eligible to apply for aid to compensate part of the rent rebate for the property. Under the proposal, the State compensation may be provided for 50 per cent of the rent rebate, which is the same level as for the period January–March.
The rent rebate is a way to help particularly vulnerable businesses through the crisis and is primarily intended for activities that have close contact with consumers. It also covers customer-facing services.
The aim is for it to be possible to apply for aid for the period April–June as of the end of June. However, there is nothing to prevent a landlord from granting the rebate before the State aid is paid.
As in the previous support period, the aid will be processed by the county administrative boards.