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The secrets about 40% discount on rents

by Ella on April 27, 2020
The secrets about 40% discount on rents


The Panhellenic Federation of Real Estate Owners (POMIDA) has issued a short guide to implementing the 40% reduction in rent provided by the PNP to deal with the coronation crisis.

In detail, it gives the following instructions:

What rents are involved

The March and April 2020 rents are mandatory for businesses that have closed and the April rents are for those that have been classified as affected.

What tenants are entitled 

Traders and professionals: 40% reduction in the rent of their professional housing

Employees fired or suspended from work: 40% reduction in rent for their main residence, and for the student residence of their child studying in another city

Employees or spouses: There is a right of deduction only when the employee who has been suspended is the same as the tenant of the residence in the lease and in the application of TAXISNET Leases. In the case of co-workers (usually spouses) who are only entitled to the reduction, this will, in fact, be calculated on their own share of the rent, ie the reduction will be 20%. When the suspended person is the tenant’s spouse, so formally they are not entitled to any reduction, POMIDA proposes to apply a 20% reduction in the rent there as well.

Prerequisite for the validity of the exercise of the right of reduction: The submission of a responsible statement to “ERGANI” by all regardless of the professional employees, even those who do not employ staff, or the above employees, with the name and TIN of the owner and manager real estate, and the delivery to the lessees a copy of that declaration.

If the responsible statement is not submitted, then everyone loses. The tenants lose the 40% discount and owe the entire rent because the arbitrary payment of a reduced rent is unacceptable and invalid. Correspondingly, the landlords, due to the lack of a statement, also lose all the foreseen tax reliefs and will be fatally taxed for the entire rent which they will be forced to claim judicially and without any discount.

What are the owners entitled to?

Four-month interest-free suspension of current debts.
25% reduction of current March debts, but so far only for those who have lost rents from professional leases!
The finance ministry has officially announced that it is considering setting up favorable tax arrangements for property owners, who are paid only 60% of the rent, based on the measures it is implementing, ie depending on the lost rents.