Instrument suspended Compensations to self-employed persons for rent and related costs
What are the benefits?
The objective of the measure is to reduce the financial burden on self-employed persons affected by COVID-19 by compensating the costs related to renting premises and operating thereof (rental fee, water, heat, electricity supply, elevator, cleaning and storage of premises, handling of building and environment, the costs of building renovations and repairs of equipment, parking spaces or indexing under the original lease agreement).
Who is eligible?
Persons employed on the basis of the certificate of an individual activity or business licence(s) who fulfil all of the following conditions:
- Operate in rented premises for which reimbursement of part of the fixed costs incurred is applied for, carry out an economic activity which is included in the list of economic activities that are restricted and indirectly restricted during the Quarantine;
- The economic activity in the rented premises was carried out prior to the Quarantine announced by Resolution No. 1226;
- On the date of submission of the application, the applicant’s activities are/are still carried out in the rented premises and the lease agreement is valid;
- The applicant’s individual activities according to the certificate has been carried out for at least 90 calendar days continuously or intermittently over 2020 until the Quarantine declared on 6 November 2020, and the business certificate(s) has been (have been) valid for at least 90 calendar days continuously or intermittently until the Quarantine declared on 6 November 2020.
If the person has changed the form of individual activity during 2020, the total duration of the individual activity carried out on the basis of the certificate and business certificate(s) during 2020 shall be at least 90 calendar days continuously or intermittently until the Quarantine declared on 6 November 2020;
- The applicant has not received any compensation for fixed costs during the period of reimbursement from other budgets of the State of the Republic of Lithuania and/or municipal budgets, other monetary resources at the disposal of the State and/or municipality, European Union Structural Funds, other European Union financial assistance instruments or other international support funds;
- Do not belong to a single undertaking together with a provider of services that result in the incurrence of fixed costs.
The applicant shall comply with the provisions of Regulation (EU) No. 1407/2013. Aid shall not be granted to operators active in the fisheries and aquaculture sector, primary production of agricultural products. More detailed information on ineligible activities.
Description of the terms and conditions
Documents required to complete the application:
- The documentation substantiating the fixed costs and the information (data and/or documents) specifying them (data and/or documents) for the period from 1 November 2020 to 30 April 2021 regarding the fixed costs incurred;
- The agreement on the lease of premises, with subsequent amendments thereto, if any;
- A completed declaration from one undertaking;
- Where the application is submitted by a person authorised by the applicant, a copy of a valid identity document or equivalent document for the applicant.
Applicants may submit applications for compensation to INVEGA at https://islaidukompensavimas.invega.lt.
What is the maximum amount?
The maximum amount of compensation that can be granted is 70 % of the fixed costs (costs relating to the renting and operation of the premises), up to a maximum of EUR 20,000 according to all applications for compensation submitted by the applicant, for which a positive decision on granting compensation has been taken.
The size of compensation shall be calculated based on the sum of fixed costs included in the invoice, exclusive of VAT, except for the cases where the applicants are non-VAT payers. The compensation shall be paid once in the form of de minimis State aid.
A total of EUR 12 million has been allocated from the State budget to implement the measure.
Compensation will be granted for fixed costs incurred between 1 November 2020 and 30 April 2021.
Applications can be submitted by 15 October 2021.
The agreement on the lease of premises, due to which the fixed costs are incurred, must be signed by 1 November 2020 at the latest; it must be valid at the time of submission of the application and registered in the State Enterprise at the Centre of Registers.
How does it work?
The compensation shall be paid in respect of the premises (or part thereof) which are designed for carrying out activities included in the list of economic activities restricted and indirectly restricted during the Quarantine and for which a lease agreement has been concluded.
The premises leased by the applicant for which the fixed costs are incurred must be recorded in the Real Estate Register (RER) as a separate object with a separate unique number, in accordance with the RER statute, and the lease of the premises in the RER shall be approved by a separate entry on the conclusion of the lease agreement. If the applicant rents only a part of the premises, which is not formalised as separate immovable property, the premises, part of which is rented, must be assigned a unique number entered in the RER, and the lease of the part of the premises shall be certified in the RER by a separate entry on the registration of the legal fact.
Compensation may not be granted to the applicant in the case of renting temporary structures, land parcels, sites on which temporary buildings stand or where activities are carried out after having built a temporary structure, residential premises or parts thereof.
The grant of compensation shall not be affected by the fact that the applicant, at the same time, carried out other activities in the same premises, which were not included in the list of economic activities restricted and indirectly restricted during the Quarantine period.
In order to obtain compensation, the applicant must complete the application for INVEGA on the website https://islaidukompensavimas.invega.lt.
The application shall be assessed within 20 working days from the date of submission of the correct application and documents to INVEGA. In case of objective circumstances or at the request of the applicant, the time limit for the assessment of applications may be extended up to a maximum of 10 working days.
INVEGA will randomly check at least five percent of the applicants who have been the subject of a positive decision. Checks will be carried out in accordance with the procedure approved by the Director-General of INVEGA.