HomeSwedenRental support notified to European Commission for approval

Rental support notified to European Commission for approval

To mitigate the economic impact of the increasing number of COVID-19 cases, the Government has proposed that the State aid in support of certain commercial tenants receiving a rent rebate – introduced in spring 2020 – be reintroduced for a three-month period, January–March 2021. Today, the Government notified the support to the European Commission for approval. The Government intends to adopt the legal framework as soon as the support is approved by the Commission.

Due to the increased transmission of the COVID-19 virus in society and its negative impact on many businesses, the Government proposed in January that State aid for commercial rent costs be reintroduced for the period January–March 2021. The Government today notified the European Commission of the support measures, which are based on an agreement between the government parties, the Centre Party and the Liberal Party.

As in the previous support period, the support will target businesses in particularly vulnerable sectors such as retail and hospitality, as well as parts of the consumer goods sector and service sectors that depend on physical proximity to customers. [The complete list of sectors proposed to be included in the support will be published on this page.]

Landlords who reduce fixed rents for tenants during the period 1 January to 31 March 2021 will be eligible to be compensated for 50 per cent of the reduced fixed rent. The tenancy must predate the beginning of this year, and a written agreement between landlord and tenant on a rental rebate must have been signed no later than 30 April 2021. Between 15 April and 30 June, landlords can apply for the support, which will be managed by the county administrative boards. In all other respects, the rental support will be modelled on the previous system.

Once the European Commission has approved the support, the Government intends to adopt the regulatory framework as soon as possible and will provide more information at that time.


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