Spain begins to slash rents for struggling bars and restaurants
Spain has passed a decree forcing landlords to slash rents for coronavirus-hit bars and restaurants by up to half and announced plans to distribute EU COVID-19 recovery funds via public-private partnerships.
Landlords with more than 10 properties in urban centres who have not agreed on a temporary discount with tenants in the hospitality sector must cut rates by 50% until a national state of emergency is lifted, government spokeswoman Maria Jesus Montero said.
Firms 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.
Before the pandemic, Spain had the highest density of bars in the world but the coronavirus restrictions have delivered a body blow to the industry, forcing some 85,000 establishments to close.
With the economy forecast to shrink 11.2% in 2020, Spain is betting the vaccination scheme due to kick off on Sunday, and an injection of 140 billion euros from the EU, should help kickstart a recovery next year.