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Draft law adopted by the Parliament on rent facilities

The draft law did not yet enter into force (it is yet to be promulgated by the Romanian President and published in the Official Gazette).

Focus: deferral of rent payment for tenants impacted by Covid-19

Main measures:

  • tenants such as companies whose activity was interrupted during the state of emergency or which incurred a decrease of revenues or cashed-in amounts by at least 15% in March 2020 when compared to the average for the previous year may benefit from deferral of rent payments during the state of emergency and the month after that;
  • in such cases, rent will be paid by the tax authorities to the landlord; the supporting file must include an addendum signed with the landlord and the tenant regarding rent deferred payment and documents attesting the tenant cannot the payment at the initial due date.
  • the tenant may file such request with the tax authority provided that the deferred monthly rent (a) does not exceed RON 10,000 per location in the case of companies and (b) is lower or equal to the rent for February 2020;
  • the tenant will then have to pay the deferred rent amount to the tax authority by 31 December 2020 at the latest;
  • tax incentives regarding taxes on rent income for landlords having agreed to rent reductions.