Positive Vote: Swiss Business Forced to Closed Down by COVID-19 to Receive 60 % Rent Discount

According to the new support, Commercial tenants, such as shops and restaurant owners, who were forced to close down by the government due to COVID-19 will only liable 40% of the agreed rent during the epidemic period, provided that the usual monthly rent does not exceed CHF 20’000. The other 60% of the rent will be borne by the landlord. However, the government has made 20 million Swiss Franc available to support landlords who have been negatively impacted by the epidemic. 

If the landlord and the tenant have already agreed on a reduced or waived rent before the new agreement has been in force, the previously agreed rent will remain valid. 

 This regulation aims to help small and medium sized business owners. According to Christian Levrat, President of the Economic Affairs, 92% of commercial tenancies will be covered by the new regulation, which are most tenants in the country. At the same time, only 44% of the total amount of money paid in commercial rent would be affected as the higher rents (more than CHF 20’000 per month) are excluded.

However, it will still take few months before the regulation comes into force. The Federal Council will have to draft a law for this regulation which, according to Federal Councilor, Guy Parmelin, will take at least until mid-September. 

If you are interested in applying for governmental supports for your Swiss business or have any questions in general regarding our services for a Swiss company, please get in touch.