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Moratorium on Rent for Businesses


Real Estate - Fuente: Spanish Solutions - 7th May 2020
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Tenants of commercial premises have until the 23rd of May 2020 to request a moratorium on rent for businesses.

This was ap­proved by Royal De­cree-Law 15/​2020 to sup­port the eco­nomy and em­ploy­ment of Spain dur­ing the State of Alarm. This Royal De­cree-Law 15/​2020 was quite a com­plic­ated one cov­er­ing meas­ures of all kinds.

In­clud­ing a morator­ium of rent for busi­nesses. A morator­ium be­ing a tem­por­ary post­pone­ment. This de­pends on the type of owner of the prop­erty. And also if a vol­un­tary agree­ment between both parties (owner and ten­ant) on the morator­ium, tem­por­ary de­fer­ment or re­duc­tion of the rent could not be reached.

Formal Requirements
Companies
a) WHEN THE LAND­LORD IS A COMPANY OR OR LARGE PROPERTY HOLDER (more than 10 urban prop­er­ties or more than 1,500m2 of prop­erty use not in­clud­ing gar­ages and stor­age rooms). In this case up un­til 23rd May 2020, the ten­ant, whether a per­son or legal en­tity, may re­quest to the owner a morator­ium on the pay­ment
of the rent. This is rent due dur­ing the State of Alarm and its ex­ten­sions, month by month, and up to a max­imum of four more months after in case that period was in­suf­fi­cient for the situ­ation of eco­nomic vul­ner­ab­il­ity caused by COVID-19 to end.

No in­terest is ac­crued and agree­ment is ap­plied auto­mat­ic­ally. It does­n’t re­quire the con­sent of the land­lord. Al­though spe­cific formal and doc­u­ment­ary re­quire­ments must be met. The de­ferred rental pay­ments will be paid to the land­lord without any type of pen­alty and may be paid gradu­ally over the next two years max­imum. From the mo­ment the State of Alarm is lif­ted or from the end of the term of the four months re­ferred to above.

Not a Company
b) WHEN THE LAND­LORD IS NOT A COMPANY OR A LARGE PROP­ERTY HOLDER the same ap­plies. Un­til 23rd May, the ten­ant, whether a per­son or legal en­tity, may re­quest to the owner a morator­ium on the pay­ment of the rent due dur­ing the State of Alarm. And for its even­tual ex­ten­sions, month by month, and up to a max­imum of four more months after. (In case that period was in­suf­fi­cient in re­la­tion to the situ­ation of eco­nomic vul­ner­ab­il­ity caused by COVID-19).

Rquirements
c) FORMAL RE­QUIRE­MENTS

When the ten­ant is self-em­ployed: – they must be af­fil­i­ated and re­gistered, at the time of the de­clar­a­tion of the State of Alarm, in the Spe­cial Scheme
for Self-Em­ployed Work­ers. So that your activ­ity has been sus­pen­ded
due to the State of Alarm.

If your activ­ity has not been sus­pen­ded, you must prove a re­duc­tion in the billing of the cal­en­dar month prior to the one for which you re­quest the morator­ium. This needs to be by at least 75%. This is re­l­at­ive to the av­er­age monthly turnover of the quarter, with ref­er­ence to the pre­vi­ous year.

The ten­ant must prove the re­duc­tion to the land­lord, based on ac­count­ing in­form­a­tion, in­come and ex­pense. Which will ini­tially be sup­por­ted by present­ing a “re­spons­ible state­ment” if you do not have all the pa­per­work needed.


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