“Cut” rents: What will apply in January and February – Detailed examples

The rents January and February that will be paid by companies that have rolled out state-owned shutters or are affected by the pandemic will be reduced by 80% with the state paying 60% of the monthly rent as compensation to property owners.

THE A relevant announcement was made yesterday by Prime Minister Kyriakos Mitsotakis, without a relevant line being provided in the state budget 2021. Although on page 138 of the presentation report of the 2021 budget there is a provision of 29 million euros for the immediate return of 50% of the reduction of rents for 2020, however for what Kyriakos Mitsotakis announced yesterday there has been no provision.

Landlords will be paid 60% of the income loss they will suffer due to the rent reduction or more simply they will receive a subsidy of 20% of the rent for January and February.

For example:

  • For a rent of 300 euros the landlord will receive a rent of 60 euros for the month of January. That is, he will not receive 240 euros. 60% of the loss of 240 euros, ie 144 euros, will be paid by the State. In total, he will receive 204 euros, for 300 euros.
  • For a rent of 600 euros the landlord will receive a rent of 120 euros for the month of February. That is, he will lose 480 euros. 60% of the loss, ie 288 euros, will be paid by the State. In total, he will receive 408 euros, for 600 euros.
  • For a rent of 1,000 euros the landlord will receive a rent of 200 euros for the month of January. That is, he will lose 800 euros. 60% of the loss of 800 euros, ie 480 euros, will be paid by the State. In total, he will receive 680 euros, for 1,000 euros.
  • For a rent of 2,000 euros, the landlord will receive a rent of only 400 euros for the month of January. That is, he will lose 1,600 euros. 60% of the loss, ie 960 euros, will be paid by the State. Thus, he will receive a total of just 1,360 euros out of a total of 2,000 euros.

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