Approval of the provision of rent subsidies



On 9 June 2020, the National Council of the Slovak Republic approved an amendment to Act No. 71/2013 Coll. on the provision of subsidies in the exercise of the competence of the Ministry of Economy of the Slovak Republic. It is a measure taken in order to mitigate the negative effects and unfavourable financial situation of entrepreneurs–tenants caused by government restrictions of their activities in connection with the COVID-19 disease.

Pursuant to this amendment, the state will provide tenants with a rent subsidy up to the amount forgiven by the landlord, but not more than 50% of the rent for the period of obstructed use (i.e. for the period during which the tenant could not use the subject of rent for the agreed purpose as a result of government measures related to the spread of the COVID-19 disease).

Such subsidies may be provided:

  • for a rental relationship, according to which the tenant became entitled to use the subject of rent no later than from 1 February 2020, whereas the subject of rent shall be the space in which the tenant carries out its economic activity, i.e. sells goods or provides services;
  • if the use of the subject of rent was prevented in connection with the prevention of the consequences of the spread of dangerous contagious human disease COVID-19, by “governmental” measures in the form of closure of establishments, interruption of teaching in schools and school facilities, or substantially restricted by a ban on the presence of the public in establishments;

The landlord shall apply for the subsidy on behalf of the tenant and on its own account, electronically using a form published by the Ministry of Economy of the Slovak Republic.

If non-compliance with the conditions stipulated by law is proven, the tenant shall be obliged to return the subsidy.

 

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