Landlords angry at Greek PM offering 80% rent discount for businesses

Greek Prime Minister Kyriakos Mitsotakis announced on Wednesday 80% rent discount for January and February for businesses closed due to pandemic. Real estate owners are angry saying that he makes “social policy” at their cost.

The discount refers to businesses such as retail stores, food services, sports and gyms facilities, tourism, transport and culture enterprises (theaters, cinemas etc) that will remain shut down over Christmas by government order.

The reduction will be implemented also to retail stores regardless of whether they use the click-away service and to catering businesses independently of whether they offer delivery or take away service.

The measure will affect more than 200,000 businesses across the country.

The state will cover 60% of the full rental amount, which means that the tenant will pay 20% of the rent, the state 60% and the landlord will lose 20%.

Landlords can submit their “Covid rent” application on the online platform of the Independent Authority for Public Revenue. Once the application is submitted, the state will immediately credit their bank accounts with the 60% compensation, media report. The money will be tax exempt and cannot be confiscated or offset against any debts to the state.

For the companies that lease out properties to other enterprises, there is no provision yet about any compensation toward the losses they have incurred. However, Finance Ministry officials have not ruled out the possibility that they will also be compensated for lost revenues.

For workers in contract suspension, the rental cut of 40% remains, including the cost of any dependent children studying in other cities.

Για όλες τις πληττόμενες επιχειρήσεις που θα παραμείνουν κλειστές στις γιορτές μειώνεται το ενοίκιο για Ιανουάριο & Φεβρουάριο κατά 80%. Το 60% του ενοικίου θα αποζημιωθεί στους ιδιοκτήτες ώστε να μην έχουν περαιτέρω απώλειες, ενώ οι επιχειρήσεις θα πληρώσουν μόνο το 20%. #Βουλή

— Prime Minister GR (@PrimeministerGR) December 15, 2020

Mitsotakis’ announcement also on Twitter on Wednesday triggered angry reactions with people saying that instead of assuming the cost the Prime Minister practices ‘policies’ at the cost of property owners.

Some claimed that the compensations for March -October have not been paid yet.

Angry are, of course, also the legal entities that rent to businesses saying that they have neither tax cuts nor compensation for the losses.