Covid-19 Subsidies and Rent discounts: What you need to know if you are a small business, self-employed or an employee
Since many of you have asked for clarifications, Athens Insider has compiled a list of subsidies announced by the Greek government to offset the economic repercussions of the pandemic (in Greece, 240,000 are expected to be unemployed in 2020 and more than 100,000 small businesses are expected to go bankrupt). Here are some of the measures announced by the Greek government to alleviate the hardship for those whose income has been affected by the lockdown.
800 € subsidy: (covering a 45-day period, non-taxable) for employees and small entrepreneurs:
The measure concerns workers in companies with up to 20 employees, who have closed or been severely affected by the crisis and who have suspended their employment contracts. Concretely, this concerns all companies closed by decree and those whose activity code is part of the list of activities which has been established by the administration (and concerns 90% of all economic activity in Greece), if the company cannot work remotely.Employees who are entitled to this subsidy also benefit from a postponement of their tax deadlines (or a tax reduction of 25% for deadlines not postponed) and the possibility of reducing up to 40% the amount of rent for their registered office. Their social security contributions are paid by the state on the basis of their gross salary for 45 days.Companies have to (and must) declare whether they have suspended some of their employment contracts and indicate the persons whose employment contract is suspended. Affected workers, for their part, must claim the subsidy which is automatically granted to them if the employer has made the declaration.
Steps to Help Small Businesses:
Companies declaring themselves in this situation benefit from a deferral of all their tax obligations and social security contributions (or a 25% reduction of these if they waive the deferral) and can obtain a 40% reduction in rents for their professional premises and loans at a subsidized rate over 5 years on the condition that they undertake not to make any redundancies (this measure concerns all companies employing from 1 to 500 employees).
A grant of 800 € for self-employed professionals:
The subsidy of 800 euros has been extended to owners of sole proprietorships (auto-entrepreneurs, independent professionals, personal partnerships) who do not employ employees and who have had for at least one month during the last 6 months a positive VAT balance. In the case of companies with several partners, the grant can only concern one of the partners. These self-employed also benefit from a postponement of their tax deadlines and their social charges (or a tax reduction of 25% for deadlines not postponed).
A subsidy of 600 euros for the liberal professions:
The liberal professions (Economists, Accountants, Lawyers, Doctors, Engineers, Teachers, Researchers and Architects) are not entitled to 800 euros but are entitled to a training subsidy of 600 euros on condition of following an approved training of 100 hours in April. In May, they will benefit from the subsidy of 800 euros.
A subsidy of 400 euros for the long-term unemployed:
Subsidy of 400 euros for the long-term unemployed (12 months of unemployment registration on April 1).
Rents for small businesses, primary residences:
40% reduction in rents for professional premises. 40% reduction in rents for primary residence for individuals whose work places have been closed due to the pandemic. (You will need to furnish a letter from your employer stating that the business has been closed for the period.) 40% off on student rents.