Prague businesses in city-owned properties can now apply for rent reductions

The Prague administration is offering a rent reduction to businesses and entities on city property that have been affected by the coronavirus crisis.

Thanks to a Prague City Council resolution, it is now possible to submit an electronic application for a discount on rent in city-owned premises as part of the city’s COVID – Nájemné (COVID – Rent) program. The form can be filled out on the Prague real estate portal. The measure is intended to help mitigate the financial impact of coronavirus on business.

Prague City Hall said it decided to provide a rent discount in accordance with the prepared government program. The discount on the rent of business premises is intended for entities that have been prevented or significantly hampered by their activities as a result of extraordinary measures against the spread of novel coronavirus. These program only applies to non-residential premises where the landlord is the capital. It does not apply to rent for residential property such as flats, or to properties not owned by the city.

Applicants must meet the conditions set by the Prague City Council. The conditions and precise instructions on how to proceed when completing the application are available on the Prague real estate portal.

“The current crisis situation related to the spread of COVID-19 has serious economic consequences for tenants of non-residential premises in the capital city of Prague, which can lead to closures, increased unemployment and reduced availability of services in the metropolis,” City Councilor Jan Chabr (United Force for Prague), responsible for property, said on the City Hall website.

“For these reasons, it is necessary for the city of Prague — as the owner of real estate — to support its tenants who are affected by the crisis so that the relevant establishments are maintained and business activities continue in the future,” he added.

Many businesses in Prague are reliant on international tourism, which has been shut down since the middle of March. Even now that businesses such as hotels, restaurants and pubs have been allowed to reopen their interiors, there is still a lack of tourists as most foreign travel is restricted. Businesses that do not rely on directly on tourist trade also saw losses due to two months of forced closures.