Covid19: Business rental? These are your deferment possibilities
The Spanish government offers entrepreneurs the opportunity to defer payment of business rentals in case business activity has been shut down by the government as a result of the state of emergency (such as catering or retail) or if, in case of continuing business activity, turnover has fallen by at least 75% compared to the same period last year.
The measure allows tenants to defer the payment of business rentals without any interest during he duration of the state of emergency and repay it in 24 equal installments during the two years following the end of the state of emergency. The landlord can offer alternative solutions, such as a rent reduction.
Not for all tenants/landlords, for whom?
The measure only applies to self-employed entrepreneurs (so-called autónomos) and SMEs (PYMES).
Only public rental organizations and “large landlords” are required to accept the postponement of the rent. Large landlords include all owners of a minimum of 10 rental properties or landlords who rent out a total of more than 1,500m2 of industrial space.
Who is a “large landlord”?
There is no clear register or database for this category of landlords. If you think that this measure applies to your lease, we would advise you to request the postponement referring to this measure. If you receive a negative answer and are not sure, there are several registers and public databases that can be consulted that demonstrate the landlord’s situation with reasonable certainty.
How do I request deferment?
You must submit the application to your landlord within one month, i.e. before May 23, 2020. We can help you with this. Depending on your situation, the landlord may, for example, request tax certificates or access to your administration to determine whether you are indeed entitled to this postponement.
EuroEconomics Covid-19 emergency measure updates Spain (in English):
- Deferment tax payments from April to May for small businesses
- Deferment social security contributions
- State guaranteed financing
- New economic emergency measures COVID-19
- Spanish government announces first corona measures
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