Spain Slashes Rents for Struggling Restaurants and Bars

Spain passed a decree on Wednesday morning forcing landlords all across the country to slash rents for COVID-19-hit restaurants and bars by up to half, and announced plans to distribute European Union COVID-9 recovery funds through public-private partnerships.

Spain passed a decree on Wednesday morning forcing landlords all across the country to slash rents for COVID-19-hit restaurants and bars by up to half, and announced plans to distribute European Union COVID-9 recovery funds through public-private partnerships.

During a press conference in Madrid, government spokeswoman Maria Jesus Montero told local reporters that landlords with over 10 properties in urban centers who have not agreed on a temporary discount with tenants in the hospitality sector will have to cut rates by 50 percent until a national state of emergency is lifted.

“The aim is to provide aid and resources to significantly relieve the burden on businesses and facilitate liquidity,” the government spokeswoman said after the weekly cabinet meeting, pointing out that the move should have a positive impact of $3.18 billion.

According to an El Pais report, companies in the sector will receive tax credits against rent and will be able to defer other contributions, while property owners will receive tax incentives to lower rents.


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