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Coronavirus - COVID-Rent support programme – Czech Republic

  • Czech Republic
  • Coronavirus
  • Coronavirus - Country overview
  • Coronavirus - Real estate

20-07-2020

The Ministry of Industry and Trade of the Czech Republic has launched the program “COVID – Rent.” The program supports entrepreneurs whose establishments have been compulsorily closed due to the "anti-Covid" measures.

The state aid amounts to 50% of the rent for the period from April to June 2020. The lessor must provide the lessee with a 30% discount on the rent and the lessee bears the remaining 20% of the rent.

Applications for the aid can be submitted from 26 June 2020.

Who can apply for a COVID-Rent subsidy?

The applicant will have to meet the following conditions:

  • the applicant is a person - an entrepreneur or a legal entity performing business activities according to the Trade Licensing Act
  • the applicant operates in leased premises on the basis of a lease agreement concluded before 12 March 2020; the lessor and the lessee must not be related parties
  • as a result of the extraordinary measures taken in connection with COVID-19, the applicant was prohibited from selling goods and services in the establishment for, at least, a part of the period from 13 March to 30 June 2020
  • the applicant has no outstanding liabilities to public institutions (e.g. Tax Office, Social security administration, Customs Administration, etc.)
  • the applicant is not in liquidation or bankruptcy, neither has bankruptcy been declared over their property

Amount of the COVID-Rent aid

  • the aid amounts to 50% of the rent for April, May, and June 2020
  • if the state is the lessor, the aid amounts to 80% of rent for the said period

Conditions for providing COVID-Rent aid

  • provision of a 30% discount by the lessor, ie an agreement with the lessor or an amendment to the lease agreement, on the basis of which the rent for the relevant period is reduced by 30%; the applicant will bear 20% of the rent
  • payment of at least 50% of the rent for the relevant period before submitting the application for the aid, or payment of 80% of the rent, if the lessor is the state (that payment will be subsequently compensated by the state aid)
  • waiver of further compensations from the state in connection with the rent for March, April, May, June 2020
  • for each leased premises only one application for the aid can be submitted
  • the aid cannot be provided / used for VAT payments (if it is charged on the rent)
  • the aid is provided up to a maximum of CZK 10 million per one applicant

Form and components of the application

The applications will be submitted electronically via an information system which will be available on the website www.mpo.cz.

The application must include, among others:

  • affidavit of the applicant stating that they meet all conditions of the program and waive other claims for compensation from the state in connection with the rent for the period from March to June 2020
  • affidavit of the lessor confirming the existence of a lease agreement concluded with the applicant
  • proof of payment of the rent for January and February 2020
  • proof of payment of the minimum part of the rent for March to June 2020

COVID-Rent timeline

  • from 26 June 2020 to 30 September 2020: submission of the applications
  • 31 December 2020: termination of provision of the aid

We will be happy to help you with preparation and submitting of the applications.