Central Tallinn tourist business tenants to get 80 percent rental relief

A relatively deserted Raekoja plats (Old Town Square) in late summer.
A relatively deserted Raekoja plats (Old Town Square) in late summer. Source: Siim Lõvi /ERR

Tallinn city government has ruled to offer catering, retail and entertainment businesses operating on city-owned premises in the city center, principally the Old Town, a rent discount of 80 percent from the beginning of September

Private sector commercial tenants of City of Tallinn-owned real estate will get rental discounts of up to 80 percent under a scheme aimed at supporting businesses hit by the COVID-19 crisis, particularly in the catering, retail and entertainment sectors.

The measure has been announced after being approved by the European Commission and is set to run to year-end.

Deputy Mayor Aivar Riisalu Center) says that measures were drawn up in late summer following an earlier round of measures introduced in spring to help a sector blighted by the coronavirus pandemic, with the package passing European Commission rules on state aid earlier this week.

Riisalu says the second aid package gives discount terms for business operators active in the city center, whose peak season is usually summer.

While the discount is generally 80 percent, in some cases the figure is different, for instance on Viru tänav in the Old Town, where tenants of 26 commercial premises will get a 30 percent rental discount.

One nightclub operator will get a 100 percent discount, city government spokespersons say, as will those who use city-owned properties for retail businesses, including souvenir shops and similar.

Those in arrears with no payment rescheduling agreement in place for clearing the debt this year, as of October 31, will not be eligible under the scheme, and neither will institutions, businesses or foundations or nonprofit associations co-owned by the city, or any activity using a building as directed by the city council itself.

Agricultural product processors or sellers who would pass on the discount in part or in full to the producer, and tenants of properties used for cultural purposes such as theaters and museums, will also be broadly exempt.

The measure comes into effect retroactively dated from September 1 and runs to year end.


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Editor: Andrew Whyte

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