Subsidies for rent compensation

Tuesday, 09. June 2020
The Slovak Government approved a draft amendment to the law,
which allows business entities and entrepreneurs to apply for rent compensation through subsidies

 
The subsidies apply to those entrepreneurs who were not able to use their rented premises (a room, set of rooms or a market stand) for agreed business purposes or the use of these premises was significantly limited due to the restrictive measures imposed to prevent the spread of COVID-19.
 
The extent of the financial compensation (subsidy) will be equal to the amount of the discount on rent based on the agreement between the landlord and the tenant, maximum up to 50% of rent for the rent period affected by the restrictions. If the landlord is a state property administrator, the rent payment is reduced by half.
 
The tenant pays rent for the period of restricted use in the final amount reduced by the rent discount as well as by the rent compensation subsidy provided to the tenant. The tenant can repay the overdue rent in no more than 48 equal monthly repayments.
 
In the case the tenant is not given any discount on rent, the tenant can repay the full overdue rent for the affected period in maximum 48 equal monthly repayments. If the tenant has already/previously paid the rent, he is entitled to pay the landlord additional rent in installments for the same period as the duration of the actual restricted use, again in maximum
48 equal monthly repayments.  
 
In all cases the monthly repayments will be due on the 15th day of a given month, starting from the 15th day of the calendar month following the month in which the state of emergency is lifted, provided the tenant and landlord do not agree on a different repayment conditions.
 
It is the landlord who officially applies for the subsidy on behalf of the tenant (who then receives the subsidy). Applications will be submitted through the electronic form published on the official website of the Slovak Ministry of Economy, which is consequently required to send the tenant and landlord an electronic notification confirming the approval of the subsidy.
 
The expected total amount of the financial aid for these rent compensations constitutes 200 million euros.