Conditions regulating the Leases of Clubs Regulations, 2014

L.N. 195 of 2014

CIVIL CODE

(CAP. 16)

Conditions regulating the Leases of Clubs Regulations, 2014

IN EXERCISE of the powers conferred by Article 1531J of the

Civil Code, the Minister for the Family and Social Solidarity has

made the following regulations:-

(1)

The title of these Regulations is the Conditions Citation and

commencement.

regulating the Leases of Clubs Regulations, 2014.

(2) These regulations shall be deemed to have come into force

on the 1st of January, 2014.

(1)

The rent of a club as referred to in Article 1531J of Rent of clubs.

the Civil Code which is paid on the basis of a lease entered into Cap. 16.

before the 1st June 1995 shall, unless otherwise agreed upon in

writing after the 1st January 2014, or agreed upon in writing prior to

the 1st June 1995 with regard to a lease which was still in its original

period di fermo or di rispetto on the 1st January 2014, as from the

date of the first payment of rent due after the 1st January 2014, be

increased by a fixed rate of ten per cent over the rent payable in

respect of the previous year and shall continue to be increased as from

the date of the first payment of rent due after the 1st January of each

year until and including the year 2016 by ten per cent over the

previous rent.

(2) The rent as from the first payment of rent due after the 1st

January 2017 shall be increased by a fixed rate of five per cent over

the rent payable in 2016. Such rent shall continue to be increased by

five per cent per annum until the 31 December 2023 and the rent shall

thereafter increase every year according to the index of inflation for

the previous year.

(1)

Where club premises or part thereof to which these Where club

regulations apply are used for the generation of income through an premises

generate income

economic activity carried out in the said premises, then as from the from

activity.

1st January 2015 the tenant of the said premises shall also pay the

person entitled to receive the rent a sum equivalent to five per cent of

the annual income derived by the club from the said economic

activity, other than income derived from fund raising or philanthropic

activities organized and managed by the club itself

Provided that for the purposes of this regulation, income

generated from economic activity means any income which is directly

or indirectly derived from the bar and, or restaurant and from any

lease, sub-lease, lease of a going-concern or a management agreement

of the said premises that is leased out as a club or part thereof.

(2) The amount referred to in sub-regulation (1) shall be

calculated on an annual basis and shall be payable by the 30th

September of the following year with the first payment being due in

respect of the year 2015 by the 30th September 2016.

(3) The annual income referred to in sub-regulation (1) shall

be calculated on the basis of financial statements signed by a certified

public accountant in the case of clubs having an income of less than

€200,000 per annum and by audited financial statements in the case

of clubs having an income of €200,000 or more per annum.

€0.18