Tallinn extends rent discount for city center business tenants until April

An empty street in Tallinn's Old Town.
An empty street in Tallinn's Old Town. Source: Siim Lõvi /ERR

The Tallinn city government has agreed to extend rent discounts for businesses operating on city-owned premises in the city center until April 30, 2021 and to make the discount of up to 80 percent available also to tenants of commercial premises outside the city center.

Under the measure, a rent discount of 80 percent is available from January 1 to April 30 next year to tenants of city-owned commercial premises in the City Center (Kesklinn) district who are active in food services, retail or entertainment. Specific terms apply to the building at 26 Viru Street, where the tenant gets a rent discount of 30 percent and the tenant operating a nightclub a discount of 100 percent, spokespeople for the city said.

Tenants who use a structure of the city, such as a terrace, for their business can get a discount of  100 percent.

Previously the rent discounts were extended by the city government on October 22, Deputy Mayor Aivar Riisalu said. 

"The discounts constitute state aid, and thereby the negative impacts arising from the COVID-19 virus are mitigated," Riisalu said, explaining that the collapse of tourism has delivered the hardest blow to business operators active in the city center whose business is geared mainly towards tourists. 

The discount can be offered until April 30 also to business operators active in food services, retail or entertainment who use city-owned properties outside the City Center district on the basis of a regulation of the city council from June 13, 2013. The discount of up to 80 percent is to be made available to tenants who applied for tenancy or were granted it prior to September. 1, 2020.

The granting of the discount will be decided by a committee.

It is expected that most of the aid whose characteristics correspond to those associated with state aid can be awarded in the legal form of de minimis aid. 

The discount will not be available to business operators who have arrears to the city as at the 15th day of the month when the discount is awarded.

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Editor: Helen Wright

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