EXPERTISE

Slovakia: Rent subsidies paid by the state

17 June 2020 – On 9 June 2020 the Slovak parliament adopted Act No. 155/2020 Coll., amending Act No. 71/2013 Coll. on the provision of subsidies within the competence of the Ministry of Economy of the Slovak Republic (the “Act”), based on which the state will provide rent subsidies to enterprises closed due to measures adopted in relation to the COVID-19 pandemic. The Act is effective as of 17 June 2020 (Pre slovenskú verziu, prosím, kliknite sem).

Further details are specified below:

1 Main conditions

1.1 Applicable to lease relationships existing as of 1 February 2020.

1.2 Amendments to leases after 12 March 2020 do not affect the amount of subsidy.

1.3 An agreement on rent discount between the landlord and tenant is required.

1.4 The subsidy may be applied for even if the rent (or its part) has already been paid.

1.5 Applicable also to sub-lease relationships.

1.6 The subsidy is provided only for the period during which the premises were closed or limited in use due to measures adopted by the Public Health Office.

2 Relevant premises

2.1 Applicable to premises:

(i) used for purposes other than residential (as identified by the decision of respective building authority),

(ii) used by the tenant for selling goods or providing services to end users (including areas for handling and storage), and

(iii) used as a market place.

2.2 As a result of measures adopted by the Public Health Office, use of the premises for the agreed purpose was:

(i) impossible due to its closure, or

(ii) limited due to the prohibition of the presence of the public.

3 Application form

3.1 The subsidy must be applied for. The application form must be submitted by electronic means by the landlord (natural or legal person) on his own account and in the name of the tenant.

3.2 The tenant must not:

(i) be facing insolvency proceedings or restructuring,

(ii) be banned from receiving subsidies or subventions, and

3.3 If the subsidy exceeds EUR 100,000, the ultimate beneficial owner must be indicated.

4 Subsidy

4.1 May be provided in the amount equal to the amount of the agreed rent discount, with a maximum of up to 50% of the total rent.

4.2 For the purposes of granting the subsidy, rent does not include:

(i) service charges (if such charges cannot be paid separately, they are calculated as 5% of the rent),

(ii) a turnover component (if rent is determined by turnover),

(iii) VAT (if the right for its deduction may be exercised).

4.3 A notice confirming that a subsidy has been granted to a landlord will be delivered by electronic means to both the landlord and tenant by the Ministry of Economy.

5 Rent instalments

5.1 The tenant has a right to pay rent (reduced by the agreed rent discount and granted subsidy) in a maximum of 48 equal instalments.

5.2 The right for rent instalments may be exercised even if the rent (or its part) has already been paid

5.3 The landlord or his legal successor can unilaterally increase the rent amount during the payment of rent instalments above only if this option was agreed in the lease agreement before 1 February 2020.

 


For more information please contact Matúš Kočíšek, Junior Associate, at

e-mail

.