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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LT-2021-33/2035 – measures in Lithuania

Rental subsidies for self-employed

Nuomos išlaidų kompensavimas savarankiškai dirbantiems asmenims

Country Lithuania , applies nationwide
Time period Temporary, 11 August 2021 – 15 October 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Rasa Mieziene, Inga Blaziene (Lithuanian Centre for Social Sciences)
Measure added 11 October 2021 (updated 19 October 2021)

Background information

A new procedure for the allocation and administration of the measure "Subsidies for the self-employed affected by COVID-19" was approved by Resolution No 666 of the Government of the Republic of Lithuania of 11 August 2021, providing for the possibility for self-employed persons affected by COVID-19 restrictions to apply for partial reimbursement of the rent of premises and the costs of running the premises. The measure aims at reducing financial burdens on self-employed persons affected by COVID-19 and thus helping them to preserve their businesses.

Content of measure

In accordance with the Procedure document, persons working on the basis of individual activity certificate or business certificate(s) are eligible for the compensation if they meet all of the conditions below:

  • Operate in rented premises and carry out an economic activity which is included in the List of economic activities that are restricted and indirectly restricted during the lockdown;
  • The economic activity was carried out in the rented premises before the lockdown;
  • On the date of submission of application, the applicant continues to carry out activities in the rented premises, has a valid lease agreement which is registered with the Real Estate Register of the State Enterprise Centre of Registers;
  • The applicant’s activities under the individual activity certificate has been carried out for at least 90 calendar days uninterruptedly or intermittently before the lockdown declared on 6 November 2020, and the business certificate(s) has (have) been valid for at least 90 calendar days uninterruptedly or intermittently before the lockdown declared on 6 November 2020;
  • The applicant has not received any compensation for fixed costs from other State or municipal budgets or other funds;
  • Do not belong to a single undertaking together with a provider of services which create fixed costs.

The maximum amount of compensation that can be granted is 70% of the fixed costs relating to the renting of and running the premises up to a maximum of €20,000.

Eligible costs include those related to the renting of and running the premises, such as rent payments, water, heat, electricity supply charges, elevator costs, costs of cleaning and storage of premises, handling of building and environment, costs of building renovations and repairs of equipment, etc.

Compensation shall be granted for fixed costs incurred between 1 November 2020 and 30 April 2021. Applications shall be submitted by 15 October 2021.

Use of measure

According to the Ministry of the Economy and Innovation (MEI), the total funds to be allocated from the State budget for compensations will amount to around €14 million.

Target groups

Workers Businesses Citizens
Self-employed
Solo-self-employed
Does not apply to citizens

Actors and funding

Actors Funding
National government
Social partners jointly
Public support service providers
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were involved only through informal consultations.

Views and reactions

No information available on the views of social partners. However, according to the MEI, comments of entrepreneurs have been taken into account when adjusting the procedure document of the measure in order to make assistance to the self-employed as targeted as possible.

Sources

  • 11 August 2021: Procedure for the allocation and administration of the measure "Subsidies for the self-employed affected by COVID-19 (e-seimas.lrs.lt)

Citation

Eurofound (2021), Rental subsidies for self-employed, measure LT-2021-33/2035 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2021-33_2035.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.