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Coronavirus – Covid-Rent support program - Czech Republic

  • Czech Republic
  • Coronavirus - Country overview
  • Coronavirus - Trade and State Aid issues

02-11-2020

Second call for applications

The Ministry of Industry and Trade of the Czech Republic launched a second call for applications for state aid within the “COVID - Rent” program. The program supports entrepreneurs who are restricted in retail sale or provision of services in leased establishments due to the "anti-Covid" measures.

The state aid amounts to 50% of the rent for the period from July to September 2020.

Applications are to be submitted from 21 October 2020 to 21 January 2021.

Who can apply for a 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 or similar
  • the applicant operates in leased premises on the basis of a lease agreement concluded before 1 July 2020
  • the lessor and the applicant must not be related parties
  • as a result of the extraordinary measures under the decision of the Czech government No. 1079 dated 21 October 2020 (“2nd lockdown”), the applicant is restricted in retail sale of goods or provision of services in the establishment
  • the applicant has no outstanding liabilities to public institutions (e.g. Tax Office, Social security administration, Customs Administration, etc.)
  • the applicant has not reached the maximum amount of state aid of EUR 800,000 per enterprise

Amount of the aid

The aid amounts to 50% of the rent for July, August, and September 2020.

Conditions for providing the aid

  • payment of at least 50% of the rent for July to September 2020 before submitting the application for the aid
  • 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 (the aid received for the rent for April to June 2020 shall not be taken into account)
  • the applicant shall receive no other state aid related to the rent for June to September 2020
  • no rent discounts provided by the lessors are required

Form and components of the application

The applications will be submitted electronically via an information system 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
  • affidavit of the lessor confirming the existence of a lease agreement concluded with the applicant
  • proof of payment of the rent for two consecutive months within the period from 1 July 2019 to 30 June 2020
  • proof of payment of part of the rent for July to September 2020, at least in the amount of the aid required

Timeline

From 21 October 2020 to 21 January 2021:

  • submission of the applications

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