Legislative Act (20th March 2020) and Ministerial Decisions on Measures for Mitigating the Spread of COVID-19 and providing Financial Aid to Society & Business entities

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A new Legislative Act was published on the 20th of March 2020 aiming among others to mitigate the spread of COVID-19, Support and Financially Assist private persons and businesses as well as ensure that the Greek market remains functional. Some of the measures contained in 72 Articles and the subsequent Ministerial and Joint Ministerial Decisions include:

Tax Related Provisions:

• Reduction of the VAT rate down to 6% for medical supplies including antiseptic liquids and wipes, surgical masks and gloves , ethyl alcohol etc;
  
• Fast process for tax returns regarding income tax and VAT. Applications for refunds of amounts up to the value of 30,000 EUR will be immediately handled and refunds shall be processed at once;
  
• Payments for VAT amounts due from the period starting from 11/03/2020 until 30/04/2020 are postponed for the affected businesses (business activities have been described in a subsequent Ministerial Decision);
  
• The same applies to debts assessed by the tax authorities due for the same  above period;

Employment & Social Security Provisions:

• Employers that belong to certain categories that have been severely impacted by the COVID-19 crisis, may suspend the employment contracts of all or part of their employees for a period of 1 month, which may be further extended by virtue of a ministerial decision;
• During the suspension period employers are prohibited from dismissing any of their employees. If effected, such dismissals are invalid and the effect is as of the 18th of March 2020;
• Employees whose employment contracts have been suspended either following an  order of the authorities or due to suspension of their employment by decision of the employer are entitled to a special payment of EUR 800 (a state benefit), which will be paid in early April;
• The same state benefit is due also to employees who have been dismissed or resigned during the period from 1 to 20 March 2020;
• In order to receive such benefit, both the employer and the employees must submit an electronic declaration.

Real Estate Related Provisions:

• Legal persons and individuals affected by the outbreak of COVID-19 (i.e. entities whose business has closed by virtue of the recent government measures) are entitled to a 40% reduction of the rent of their premises (commercial leases). The same applies to employees of these businesses for their residential leases. Landlords are not allowed to terminate such leases due to partial payment. Currently the above applies for the months of March and April;
• Uploading of lease agreements notifications through the Independent Authority of Public Revenues (ΑΑΔΕ) for lease agreements or amendments for the period from 01.02.2020 until 30.04.2020 as well as declarations of short-term accommodation for commencement of accommodation or cancellations thereof for the period from 01.02.2020 until 31.05.2020 is extended until 30 June 2020;
• The Ministry of Finance further announced that there will be a postponement of the revision of the real estate property objective values (αντικειμενικές αξίες) for property tax calculation purposes. The 2020 annual uniform real estate property tax (ENFIA) will be assessed and issued on the current/last year's objective values. Any revisions taking place in 2020 shall apply for the assessment of next year's ENFIA Tax.

Business Related Provisions:

• Businesses or sole proprietorships falling under particular business activities (ΚΑΔ) will be eligible for a series of support measures including a state aid of 800 EUR for the months of March and April (more specific measures will be announced at a future date);
  
• The same businesses or sole proprietorships will enjoy a benefit of suspension of national insurance contributions and installments of past installment arrangements.
• The Hellenic Development Bank’s Entrepreneurial Fund and the European Investment Bank will be granting new loans to businesses affected by COVID-19  with a 100% interest rate subsidy for a period of two months.
• By virtue of a Decision of the Hellenic Capital Market Commission (Επιτροπή Κεφαλαιαγοράς) on the 18th of March 2020, short selling and other transactions that create or increase the net short position in shares listed on the ATHEX, are prohibited.

Market Related Provisions:

• Up to 3 items on antiseptics, ethyl products etc. are allowed per customer by retailers. Fines for non-conforming with the above range between 1,000 and 100,000 EUR (pursuant to a subsequent circular by the Ministry of Development on the 24th of March the items are now down to 2 per person).

Various Provisions and Measures:

• Greece's borders are now temporarily closed from and to several destinations including Italy, Spain, UK, Turkey, Albania (there are exceptions for cargo whereas in respect to individuals entrance depends on the country and status of residence of the individual in Greece, whereas on several cases a 14 day house quarantine is compulsory).;
• As of the 23rd of March 2020, strict home quarantine measures have been applied to all citizens until the 6th of April 2020 whereby: Citizens are not allowed to leave their home quarantine unless such leave is in relation to getting to their work, visiting drug-stores, supermarkets and other food stores, hospitals, banks, doctors, physical exercise and for walking a pet (up to 2 people allowed at the same time). Several more exceptions have been made e.g. in relation to attending funerals etc;
• Donations' acceptance processes from individuals legal persons to the State are abolished and donations get automatically accepted for the purposes of being utilized to the end of purchasing medical supplies and equipment.

pdf of the Legislative Act in Greek