Catalonia pledges 50% rent reduction for businesses closed in anti-Covid push

Government promises relief aid for bars and other establishments

A restaurant owner in Vilobí d'Onyar stacks chairs and tables as both indoor and outdoor dining areas must remain closed (by Xavier Pi)
A restaurant owner in Vilobí d'Onyar stacks chairs and tables as both indoor and outdoor dining areas must remain closed (by Xavier Pi) / ACN

ACN | Barcelona

October 20, 2020 12:20 PM

The Catalan government has pledged rent reductions of up to 50% for bars, restaurants, and other businesses ordered to close or affected by measures to curb coronavirus contagion.

The Catalan executive says that the new decree will either grant a 50% discount for businesses that have been closed down, like bars, restaurants, or massage parlors, or a proportional deduction if restrictions only affect their opening hours, like 24/7 stores that now must close at night.

While prioritizing agreements between landlords and tenants, the decree will provide a safety net if they fail to reach one after a month of negotiations.

The decree is expected to be approved by the Catalan government on Tuesday, but cabinet sources say a new law will also be needed within two years that allows rent contracts to be renegotiated if there are "unexpected changes of circumstances."

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