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COVID-19 European Real Estate MarketsGovernment Response
Denmark 4Germany 4Netherlands 4Sweden 4United Kingdom 4Finland 3,5Norway 3,5Switzerland 3,5Austria 3Belgium 3France 3Turkey 3Bulgaria 2,5Czechia 2,5Greece 2,5Ireland 2,5Israel 2,5
Italy 2,5Latvia 2,5Portugal 2,5Romania 2,5Slovakia 2,5United Arab Emirates 2,5Croatia 2Poland 2Serbia 2Spain 2Hungary 1,5Kingdom of Saudi Arabia 1,5Russia 1South 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
CROATIAPORTUGAL
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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Israel No No State loan funds; Credit relief for real estate sector
Social security and VAT can be deferred Council taxes postponed Grants for self-employed n/a
Italy Yes Cura Italia Law Decree of 18th March provides tax credit = 60% of the rent of March 2020 for shops and boutiques. Subject to extension
EUR 10 Bn worth of support SME specific loans/support
All fiscal payments postponed to 31st May
Can convert NPLS to tax assets;
No Yes, but limited.
Entitled to social security benefits if made redundant
15 days parental leave at 50% of salary
n/a
KSA No No Stimulus packages to banks to defer loan payments from SMEs for 6 months
3 month deferrals on VAT, excise and income taxes and levies on imports/exports
Local government fees covered for 3 months
No n/a
Latvia No No Loans, credit and payment holidays Income tax pre-payments for 2020 not required;
Tax deadlines extended to July 2020
Municipalities can introduce tax reliefs
State support of 75% of gross salary up to EUR 700 per month - no tax on this support
n/a
Netherlands No Not yet, banks starting to offer 6 month repayment 'holiday'
Yes - loan repayments of <€2.5 million suspended until August
All tax payments can be postponed 3 months Not yet (suspending tourist tax under consideration)
Yes, 90% of salaries inc self-employed n/a
Norway No No NOK 50 Bn government guarantee fund. (EUR 4.5 Bn)
New loans offered and various stimulus/supportpackages for specific industries inc.loans for SMEs
Can be up to 25% of company turnover in 2019
2 month cut in social security payments; Postpone wealth tax payments
Re-allocate losses to previous years taxed surplus;
No Self-employed are paid 80 per cent of their average income over the past three years.
Unemployment benefits already high and in-situ- worth 62.4% of previous salary
n/a
Poland No - but new law as of 1st April 2020 has suspended lease agreements in shopping centres above 2000 m2 - no rent or service charges are payable during the ban.
No Credit instalments for individuals and SMES/small companies
5,000PLN loans for micro-businesses
Social security contribution holidays for micro-businesses, self-employed (3 months for <9 employees)
Retroactive settlement of PIT and CIT tax losses -2020 losses offset against 2019 income; donations related to coronavirus prevention considered deductible
Extension of deadline to pay tax on commercial real estate in March-May to July; payroll taxes for March & April pushed to June; CIT deadline also extended + changes in bad debt relief
No Government will guarantee 40% of wages, employers must match 40% where turnover fallen by 15%>
Foreman Funds for micro, small and medium-sized entities up to 50% of salary costs plus social security contributions.
No
Portugal TBD - parliament discussing law allowing tenants to postpone rents during state emergency
No EUR 3 Mn of creditlines. Specific subsidies and credit lines for tourism, fisheries, restaurants, micro and small cmpanies
Social contributions cut by two thirds for March, April & May;
VAT deferred for 3 months
No Extended unemployment and social security benefits
Yes - temporary regime, but as yet unclear
Romania No No Direct funding support for SMEs, micro enterprises and small businesses
Tax can be deferred to June 30th and waiver of late payment penalties
No 75% of gross salary for paid leave due to closure of schools
n/a
Russia No Yes but only for government owned property.
Program to be determined by April 15. To defer all taxes on small and medium-sized businesses, except for VAT, for the next six months.
Decreased social taxes for SME organisations (from 30% to 15%).
Micro businesses granted a deferral on social insurance contribution.
No Yes. The unemployment refundance is increased up to minimum statutory monthly wage. Local authorities can increase the refundance from their budget (in Moscow for example). Additional payments for families with 2+ children during 3 months.
New 13% income tax on interests for private person's savings from 1M roubles.
Mortgage grace period for loan debtors in case of income decrease of >30%
Serbia No, not typical No 3 month moratorium on repayment of loans and all other bank products (guarantees, letter of credit, letter of intent etc)
New economic measures to be published on April 1st, including 3 month support to all SME's, state guarantees to banks to facilitate disbursment of cheap loans
Economic measures should allow the postponement of VAT, corporate tax and social security contributions until the end of 2020
No Proposal that each Serbian citizen of legal age given 100 EUR to spur consumption, and those furloughed to be paid minimum wage.
n/a
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
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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
Slovakia No - case by case No Bank guarantees will amount to EUR 0.5 Bn for employers, to be able to finance their business.
In April, the state will contribute €180 per employee toward salaries for companies whose revenues dropped by more than 20% - this rises to €540 per employee where revenues dropped 80%.
Payroll taxes / income tax delayed for those whose revenues drop by more than 40 percent.
Entrepreneurs will start paying the advance payments as of October. Companies will be able to include loss carryback since 2014 (including) if they have not included their loss carryback so far.
No Employees in quarantine and parents at home with their kids will get 55 percent of their gross salary from the state.
n/a
South Africa No - only if stated in lease contract
No No Tax relief measures for businesses with an annual turnover of <R50 million. Small businesses can defer 20% of their employees’ tax payment from 1 April to 31 July Only 15% of the first provisional tax payment payable, instead of 50%. Second provisional payment of 50% to be paid. Residual estimated tax liability should be paid by the third top up date to avoid interest.
No No No
Spain Not clear - case by case No Necessary liquidity' to be offered to Spanish companies via loan guarantees
75% discount to social security contributions where redundancies
No ‘Force majeure’ redundancies allows workers to collect unemployment benefits.
No
Sweden No No SEK 500 Bn of loans via the banks (ca EUR 50 Bn)
Credit guarantees to specific industries (SEK5 Bn for airlines inc SAS), plus specific SME measures
3 months of tax deferrals No New regs for short-term layoffs inc. 65%+ of salary capped at SEK 44,000 /month
Government also pay full cost of sick-pay in April & May
n/a
Switzerland TBD No All Swiss companies can obtain bank credits worth up to 10% of turnover, up to a maximum of CHF20 million (EUR19 million)
Social security deferred; tax payment deadlines extended without interest; VAT and other duties cut to 0%
No RWH provides compensation for unavoidable job losses but amount unclear as of yet
n/a
Turkey No - moratorium on evictions due to breach of rent payments between March 1 - June 30, 2020 forall commercial and residential
No, bar moratorium on evictions
No funds - Company debts deferred for three months where cashflow impacted
VAT, corporate tax and social security contributions for specific sectors (retail, tourism, ariline, auto) postponed for 6 months VAT of airlines decreased to 1% from 18% for three months
Hotel accodomation tax cancelled for six months
60% of salaries of all legal entities guaranteed for 3 months, where the working time is physically reduced by at least one third due to COVID-19
No, bar moratorium on evictions
UAE No Specific packages by major UAE landlords in Dubai Free Zones
Abu Dhabi 20% rebate on rents for the restaurants, tourism and entertainment sectors.
Collateralised loans, specifc focus on SMEs
Market maker fund to buoy stock market
Utility and road toll subsidies
Government fees frozen or cancelled for doing business in Dubai.
Land leasing fees reduced by 25% on new contracts.
Government fees frozen or cancelled for doing business in Dubai.
Abu Dhabi - suspended municipality fees for tourism & entertainment sectors
No Higher LTV ratios possible for first time buyers
UK No moratorium on commercial space evictions for initial fixed 3 months to end June 2020
No, bar moratorium on evictions
Yes, Coronavirus Bill worth GBP 330 Bn+ set aside, plus additional sums for individuals and charities; Business loans and grant funding available 3 month extension to filing accounts, flexibility of AGMs and improve insolvency system
Yes, no VAT until end June Yes, 12 month business rate exemptions for retailers, leisure and hospitality businesses
Yes, inc self-employed - 80% of salary/profits up to £2,500pcm
Annual leave can be pushed back two years, if due to be taken during lockdown
Charity fund established, £750 million struggling with funding as a result of closed charity shops
Yes, 3 month deferral for mortgages;
Eviction notice on renters pushed from 2 -3 months
Service LineContacts
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E M E A
Andrew Hallissey Executive Managing Director Occupier Services | EMEA
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Dirk Bakker Chief Executive Officer | Netherlands
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Peter Kunz Head of Industrial & Logistics | EMEA
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Etienne van Unen Partner | Director Food & Beverage | Co Head EMEA Retail
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Sam Addison Head of Project Management | EMEA
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Richard Divall Head of Cross Border Capital Markets I EMEA
+44 7831 254673 [email protected]
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JanJaap Boogaard Head of Workplace Advisory | EMEA
+31 62 181 71 42 [email protected]
James Moy Head of Valuations | EMEA
+44 7917 613014 [email protected]
Paul Souber Head of Retail Agency London | Co-Head EMEA Retail
+44 7710 077979 [email protected]
Peter Leyburn Head of Cross Border Tenant Representation | EMEA
+44 7785 115108 [email protected]
Karel Stransky Director | Head of Corporate Industrial Advisory EMEA
+420 603 457 242 [email protected]
