On 3 May 2020 the Lithuanian Ministry of Economy and Innovation approved a state aid scheme for partial rent compensation for businesses most affected by COVID-19. This aid scheme entered into force on 4 May 2020; to take advantage of it, tenants must apply to INVEGA.
Who qualifies for compensation
Tenants wishing to claim partial rent compensation must meet the following requirements:
- the tenant’s main activity during the quarantine period was or is prohibited by the Government and the tenant did not perform this activity during the prohibition period;
- the landlord has reduced the rent to the tenant by at least 30% after the date of the quarantine announcement;
- the tenant’s annual income in 2019 did not exceed EUR 50 million or the book value of the property on 31 December 2019 did not exceed EUR 43 million;
- the lease agreement was signed no later than 15 March 2020 and at the time of submission of the application is valid and registered in the Center of Registers;
- at the time of applying for partial rent compensation, the tenant has submitted a set of annual financial statements to the Centre of Registers for the year 2019.
Compensation amount and period
The maximum amount of partial rent compensation monthly is 50 % of the rental fee; the total amount of financing to one tenant may not exceed EUR 800 000.
Compensation covers the period from 16 March 2020 until at least 60 calendar days after the end of the quarantine period.
Information to be submitted
Along with their application, tenants must submit invoices for rental services received in February 2020 and during the months when they were granted a discount up to the date of their application.
More detailed information about rent compensation and an application form can be found on the INVEGA website.
Lease agreement registration at the Centre of Registers
The lease agreement can be registered at the Centre of Registers by both the tenant and the landlord. To register a lease agreement, the following documents must be submitted to the Centre of Registers:
- the original of the real estate lease agreement;
- if a mortgage is registered at the Real Estate Register for leased premises or building(s), the mortgage creditor’s consent (permission) to the lease of the mortgaged real estate must be submitted together with the original lease agreement, unless the mortgage agreement provides for the mortgage lender’s consent.
Our Real Estate team is at your disposal, should you need advice on any legal issues you are facing.