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100% rent exemption on city premises extends across the city

100% rent exemption on city premises extends across the city

With the package of additional support measures proposed by the Tallinn City Government, Tallinn plans to exempt traders, caterers and other enterprises operating in the city's commercial premises across the city from paying rent until the end of April.

In addition, the measures include handling the invoices of companies more promptly, continuing to support the digital solutions of small businesses and exempting the city's sports clubs and associations from rent.

According to Aivar Riisalu, Deputy Mayor of Tallinn, the benefits will be extended throughout the city to companies operating in commercial premises belonging to the city, such as caterers and traders, which are subject to restrictions imposed by the Estonian Government. "The rent exemption rate for the above-mentioned companies is 100 percent over the city. The city's facilities or outdoor terraces in the city centre are also exempt from rent. This is valid until the end of April, but we may have to review it in the spring," said Riisalu.

Until the end of April, Tallinn will not ask rent for the city’s business premises from non-profit associations or from companies engaged in catering, trade, services, education, pre-school education, welfare, sports, hobbies, youth work, art and culture. To do that, City Government plans to introduce a 100% discount under the city property lease agreement to premise users across the city.

According to Riisalu, during the crisis, the city pays its bills to its partners as soon as possible. "As a rule, institutions tend to pay the bills within 21 or 30 days. We intend to pay the bills to our partners within ten working days until the end of the year," said Riisalu.

In addition, various alleviations will be applied to the city’s contractual partners until the end of the year. "Tallinn does not apply interests on arrears or contractual penalties to the companies that have concluded agreements with the city and have problems in fulfilling the terms of agreement due to the situation in the world. If necessary, we will extend the deadlines for deliveries or fulfilment of orders by a reasonable time," said Riisalu. "With our popular digital support measure, small businesses can improve their resilience to the crisis. Most of our enterprises are small, which is why they all play a very important role in the Estonian economy. Small businesses can apply for up to 6,000 euros for the whole year to acquire and develop software or licenses."

With the digital solution grant for small enterprises, the city supports the costs of programming, implementation or testing related to the acquisition or development of software licenses or software up to a maximum of 6,000 euros per company per year. 

The organizers of cancelled conferences or cultural and sports events who have incurred proven sunk costs before the restrictions were imposed do not have to repay Tallinn the support allocated for these costs.