Renting commercial premises in Spain — a shop, office, warehouse or any non-residential space — requires a commercial lease agreement that complies with the Urban Leasing Act (LAU). Our free commercial lease agreement template for Spain is available in Word format, fully customisable and ready to use.
How do commercial leases differ from residential leases in Spain?
Unlike residential leases, commercial leases in Spain offer significantly more freedom to the parties. There is no mandatory minimum duration — landlord and tenant can agree any term. Rent increases, renewal conditions and termination clauses are all negotiable. The LAU still applies to commercial leases for business premises, but its mandatory provisions are much less restrictive than for residential properties.
Right of first refusal and business transfer
Under Spanish law, commercial tenants have a right of first refusal (tanteo y retracto) if the landlord decides to sell the property. This means you must be offered the chance to buy at the agreed sale price before it is sold to a third party. This right can be waived by contract, but this must be done explicitly. Separately, if you want to transfer your business (traspaso), the lease may or may not allow this depending on the contract terms.
VAT and stamp duty on commercial leases
Commercial property leases in Spain are subject to 21% VAT (IVA), unlike residential leases which are VAT-exempt. The landlord must issue invoices and charge VAT on each rental payment. In some regions, the contract may also be subject to Stamp Duty (Impuesto de Actos Jurídicos Documentados, AJD), typically calculated on the total value of the contract. Always consult a tax adviser for your specific situation.
Key clauses in a commercial lease agreement
A well-drafted commercial lease should clearly establish the rental term and renewal options, the rent amount and update mechanism, any rent-free periods during fit-out, the permitted use of the premises, who is responsible for maintenance and structural repairs, whether subletting or business transfer is permitted, the deposit amount and conditions for return, and the termination notice period required by each party.
Frequently asked questions
Is there a minimum duration for commercial leases in Spain?
No. Unlike residential leases, commercial leases have no legally mandated minimum duration. Landlord and tenant are free to agree any term, though 5-year terms are common in practice.
Who pays for repairs in a commercial lease?
Generally, the tenant is responsible for routine maintenance and minor repairs, while the landlord covers structural repairs and major building works. The exact split should be defined explicitly in the contract.
Can the landlord increase the rent annually?
Yes, if the contract provides for it. Annual rent increases are typically linked to the CPI or a fixed percentage agreed at signing. Unlike residential leases, there is no legal cap on commercial rent increases.
What happens if the landlord sells the property?
The tenant has a right of first refusal (tanteo) to purchase at the sale price. If not notified, the tenant can exercise a right of redemption (retracto) within 30 days of learning of the sale. Both rights can be waived in the contract.
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Commercial Lease Agreement →