In a recent decision, the Austrian Supreme Court dealt with the question of whether businesses have to surrender the fixed cost subsidy (Fixkostenzuschuss) to the landlord in the event of a COVID 19-related rent default. The Supreme Court answered in the negative with reference to the purpose of the subsidy. Accordingly, the fixed cost subsidy serves to maintain the solvency and liquidity of affected businesses and not to offset the loss of rent. Furthermore, since the fixed cost subsidy includes an obligation to mitigate damages, the tenant is even obligated to claim rent reductions from the landlord. (3 Ob 184/21m)
No surrender of the fixed cost subsidy (Fixkostenzuschuss) to the landlord
