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THIS DOCUMENT DETAILS THE Estate Markets Government Response · PDF file COVID-19 European Real Estate Markets Government Response Denmark 4 Germany 4 Netherlands 4 Sweden 4 United

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  • COVID-19 European Real Estate Markets Government Response

    Denmark 4 Germany 4 Netherlands 4 Sweden 4 United Kingdom 4 Finland 3,5 Norway 3,5 Switzerland 3,5 Austria 3 Belgium 3 France 3 Turkey 3 Bulgaria 2,5 Czechia 2,5 Greece 2,5 Ireland 2,5 Israel 2,5

    Italy 2,5 Latvia 2,5 Portugal 2,5 Romania 2,5 Slovakia 2,5 United Arab Emirates 2,5 Croatia 2 Poland 2 Serbia 2 Spain 2 Hungary 1,5 Kingdom of Saudi Arabia 1,5 Russia 1 South Africa 1

    1 4

    Colliers has collated key data to provide an outline of the measures that have been taken by governments across EMEA, to counteract the negative economic consequences created by the COVID-19 pandemic. This is based on information we have received from across Colliers offices and other public sources. It has been structured in a way to be directly relevant to businesses, occupiers and landlords/investors alike. It is a guide, not investment advice and will be updated weekly as policy responses change to support business and households. For more detailed information please reach out to your Colliers contact.

    THIS DOCUMENT DETAILS THE FOLLOWING INFORMATION BY COUNTRY - Force majeure impact on lease contracts - an

    indication of the extent to which this comes into effect, as a result of the COVID-19 pandemic

    GOVERNMENT SUPPORT ON - Commercial Rent/Mortgage – direct or indirect

    government support to landlords or business occupiers to support rent/mortgage payments

    - Business Loans – direct support for businesses impacted in terms of loans, grants and other financial support

    - Taxation – direct support in terms of the variety of tax deferral options available e.g. VAT, social security contributions

    - Local taxes/Business Rates – any specific support to particular occupiers/landlords at a local/ municipal level

    - Households/Salaries – government support for businesses to maintain employees and their income; the self-employed position and benefits available

    - Residential Rent/Mortgage - – direct or indirect government support to households to support rent/ mortgage payments

    DEPTH & BREADTH OF NATIONAL POLICY RESPONSE

    POLAND

    FINLANDNORWAY SWEDEN

    DENMARK

    HUNGARY

    BULGARIA

    BELGIUM GERMANY

    NETHERLANDS

    FRANCE

    CROATIA PORTUGAL

    IRELAND UNITED KINGDOM

    ISRAEL

    TURKEY

    ITALY

    SLOVAKIA

    CZECHIA

    SERBIA

    GREECE

    ROMANIA

    SWITZERLAND

    AUSTRIA

    SPAIN

    LATVIA

    KINGDOM OF SAUDI ARABIA

    UNITED ARAB EMIRATES

    RUSSIA

    09.04.2020

    E M E A

    Damian Harrington Director | Head of EMEA Research

    +44 7867 360489 [email protected]

    SOUTH AFRICA

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    Country Force Majeure Explicitly Applicable to Forgoing Lease Contract?

    Government Support - Commercial Rent/ Mortgage

    Government Support - Business Loan/Other Government Support - VAT/tax Government Support - local tax/business rates

    Government Support - Households/Salaries Government Support - Residential Rent/ Mortgage

    Austria Yes - when in line with civic code

    Yes - rent subsidies if sales declined >50%

    EUR 38 Bn aid package Credit lines and financing available to firms

    Not yet No 80% support for salaries introduced March 14th

    n/a

    Belgium Not clear - case by case No Loans cover via banks, other financial support via regional investment vehicles

    VAT, income tax and personal/ corporate tax can be deferred

    see govnt loans Temporary unemployment benefits for 3 months, up to 70% (of salary TBD?) - EUR 1,450 per month government grant

    No

    Bulgaria Not in general, but it may be applicable in case of premises closed by the authorities

    No, but sanctions for delayed payments are suspended until the end of emergency

    TBC - Interest free loans for employees of up to BGN 1,500 have been announced, but not yet official.

    Extension of terms for declaration and payment of certain tax obligations (but NOT VAT); Extension of terms for financial reporting

    No Employers can apply for state support to cover 60% of insurable employee earnings where they meet the criteria determined by the Council of Ministers

    Right for parents of children aged up to 12 yrs. to request paid or unpaid annual leave

    No, but sanctions for delayed payments are suspended until the end of emergency

    Croatia TBD No Loan moratoriums and liquidity loans, but unclear Tax can be deferred for 3 months Not yet, loans being given to municipalities

    Grants to self-employed, Personal income tax refunds for 2019 paid in June

    n/a

    Czechia No (Case by Case)

    Not yet State budget deficit increased from 40 to 200 billion CZK

    CMZRB provides Guarantee for commercial loans for small and medium-sized enterprises Interest free-loans to be made available

    Tax deferred to 1 July 2020. Some social and health security payments deferred as well.

    No TBC - goverment wants to support the employment by suplementing wages

    6 month deferral on mortgage payments

    Denmark No No Yes, 75% government loan guarantee; irrecoverable cost compensation of 25%-80%

    Yes, VAT, corporate tax and social security contributions postponed

    No Yes, 75% of salaries for 3 months, up to 90% for PT/hourly paid staff

    n/a

    Finland No- case by case adjustments

    No EUR 15 Bn Aid package for business, including loans via Finnvera, plus support for SMEs and midcaps

    Tax liquidity measures in place (tax payment deferrals)

    Changes to insolvency proceedings being considered

    No Specific labour market support TBD, but earnings-related unemployment allowance in- situ, ca 60%+ of gross salary + benefits

    Banks offering repayment holidays, so interest only applicable

    France No. Courts in discussion Emergency Covid law protects SMEs from eviction, where they cannot meet rent/service charge payments; from 12 March +2 months after end of state emergency

    EUR 300 Bn fund - Financial help for companies via loans and grants, including for SMEs

    Can postpone taxes and social security contributions due March & April for 3 months

    Tax rebates available for most distressed individuals

    No Compensation available to companies keeping on employees, but amount not clear

    n/a

    Germany No - new COVID-19 Pandemic Act of 27 March 2020 created time-limited exclusion preventing landlords evicting tenants of all premises for non- payment of rent from April to June.

    No, bar noratorium on evictions

    EUR 400 Bn Guarantee fund SME accelerated access to loans, but unclear;

    Bail-out fund for larger companies

    No insolvency claims until Sept 2020

    Can apply for relief;

    Tax enforcement deferred to Dec 2020

    No Yes, 67% of pay inc. all payroll taxes for 12 months

    Grants of EUR 15,000 for 3 months available to self-employed/small companies

    New COVID-19 Pandemic Act of 27 March 2020 created time-limited exclusion preventing landlords evicting tenants of all premises for non- payment of rent from April to June.

    Greece Yes Yes, 40% reduction in the rent of March and April 2020 on all commercial leases of any type of businesses impacted

    Banks to facilitate payment of loans to households and businesses affected by the crisis, as per MoF advice.

    Yes, VAT, corporate tax and social security contributions postponed. Payment of VAT owed 11 March 2020 until 30 April 2020 postponed to 31 August 2020. 25% of tax-certified debt deductible for businesses and individuals that fall under the support measures - with specific conditions.

    No Financial support of EUR 800 to employees of businesses which do not operate due to the Coronavirus - to end April, could be extended. In total, it can cover 1.7 million employees, so 81% of all private sector workers. This aid is tax-free, non-taxable and non-offsetting,and social insurance contributions, on their nominal salary, are covered for 45 days.

    Corresponding 40% reduction of the residential rent of employees in affected companies for two months.

    Hungary No - There are case by case agreements/ renegotiations

    No, but evictions are suspended till the end of the state of emergency

    Moratorium on loans repayments for companies and for retail lending until the 31 of December 2020

    Private-enterpreneurs in the most impacted sectors get exemption from paying taxes from March to June 2020.

    No No support considering the salaries, however maternity/childcare fee cover extended until the end of the state of emergency

    No, but evictions are suspended till the end of the state of emergency

    Ireland No No Loans and credit schemes available; Bank capital buffers reduced to 0%, releasing EUR 1 billion.

    Not yet No Short Time Work Support for self-employed, plus sick pay benefits.

    Pandemic Unemployment Payment scheme unclear on actual financial benefit.

    Moratorium on rental increases and evictions

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