COVID-19: Moratorium on Payment of Leases for Non-residential Uses
On 23 April came into force, the Royal Decree-Law 15/2020 of 21 April, that approves certain resolutions regarding leases for non-residential uses, which is applicable in essence to self-employed (“autónomos”) tenants whose activity has been suspended due to the declaration of the alarm state or whose turnover has fallen by 75% compared to turnover for the same month in the previous year, or to SMEs, which meet the requirements for approving an abbreviated balance sheet or whose activity has been suspended or whose turnover has fallen by 75% as in the previous case.
In these cases, the tenant may request from the owner within one month from the entry into force of this regulation, until May 22th 2020, a temporary and extraordinary moratorium on the payment of rent which shall apply automatically, provided that a moratorium or reduction of rent has not been previously agreed by both parties. In addition, the tenant may freely dispose of the deposit paid, to be returned during the following year.
For owners who are companies, public entities or “large holders” (owners of more than 10 urban properties, excluding garages and storage rooms, or a built-up area of more than 1,500 m2 ) they may also be asked to defer their payments, without penalty or interest, until 22 May 2020, during the period of the alarm state and its extensions, but in no case more than 4 months, which will be paid in installments within two years.
We will keep you informed about any additional news that may arise.