Rent Refund Scheme

4 September 2020

As part of the Economic Stimulus Package announced on 8 June 2020 to assist businesses impacted by the COVID-19 pandemic, the Minister for the Economy, Investment and Small Businesses has launched the Rent Refund Scheme. 

This economic regeneration initiative will be administered by Malta Enterprise Corporation.

Who is eligible for this Scheme?

Similarly to the Electricity Bill Refund Scheme announced last week, the Rent Refund Scheme is applicable to businesses that have benefited from the COVID-19 Wage Supplement (Annex A, Annex B or Annex C).

What will be the aid awarded?

The aid will amount to a full reimbursement of the rental cost for the year 2020 resulting from a rental agreement entered into before 9 March 2020 and in relation to commercial property that is rented from private sector third parties for the carrying out of the business’ activities (i.e. intercompany rent agreements fall outside the scope of this measure). Cappings may apply depending on two criteria: number of rent agreements and number of employees.

Businesses having just one rent agreement may claim up to a maximum of €2,500 as aid. However, this may increase to a maximum of €7,500 in the case of businesses having more than one rental agreement and depending on the number of employees that received the COVID wage supplement. The following scale was announced by the Minister:

Effective businesses
Eligible rental agreements No of employees receiving the wage supplement Maximum aid awarded

1

1-9

€2,500

2

10-19

€4,000

3

20-29

€5,500

4

30-39

€7,000

5

40 and over

€7,500

What is the application process?

As from 9 September 2020, Malta Enterprise Corporation will send an email to eligible persons and entities containing a link to the Rent Refund Scheme application form.

The application process will require the submission of a number of documents, including scanned rent agreements, an Enterprise in Difficulty Declaration Form, and a declaration relating to aid already received through schemes administered by Malta Enterprise Corporation. The latter declarations may be the same as those already submitted for the Electricity Bill Refund Scheme.

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Other conditions

The aid will be granted subject to the condition that the rent due for the year has been settled. Following the verification process of the application form by Malta Enterprise Corporation, the refund would be issued directly to the beneficiaries.

Further information and Guidelines on this Scheme may be found on the website of Malta Enterprise Corporation

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Contact us

Neville Gatt

Neville Gatt

Head of Tax, PwC Malta

Tel: +356 2564 6791

David Ferry

David Ferry

Tax Partner, PwC Malta

Tel: +356 2564 6897

Victoria Muscat

Victoria Muscat

Senior Manager, Tax, PwC Malta

Tel: +356 2564 6739

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