Section IV (2) - Doing business in Spain:

Doing business in Spain: Section IV- Renting and Letting business premises (2)

4. Subletting the business premises. Transferring the rental contract.

The tenant may sublet the premises or transfer the rental contract to a third party without landlord previous consent, the tenant shall notice it to the owner within one month from the date of subletting or transference.

In these cases the landlord may raise the rent 10% when subletting part of the premises, or increase 20 % of the amount when subletting all the premises or transferring the rental contract.

Keep in mind that upon transfer of rental contract, the tenant transfers all rights as well as obligations to the transferee third party.

Notwithstanding you may be forbidden from subletting your unit if this was previously agreed in your rental contract.

You should consult Spanish Professionals in order to avoid pitfalls.

5. Repairs in the premises

Usually it involves many problems to clarify who must make the repairs in the premises and pay any related costs, here you have a general guideline about repairs when renting/subletting business premises. Other problems may arise, and thus it is advisable that you hire the services of a Spanish professional.

The landlord must make all necessary repairs to keep the property in a fit condition to use it, however landlord is not responsible for repairing damages caused by the tenant.

Tenant shall make those small repairs on account of the property daily use.

Urgent maintenance repairs may be undertaken by the tenant in order to avoid serious and immediate damages in the property, these must be made previous notice to the landlord, repair costs will be returned to tenant.

The landlord must give the tenant three-months notice of his intent to undertake repairs affecting to health and hygiene in the property. In this case tenant may renounce the rental contract within 1 month from the notice. If the tenant decides to stay he may get a reduced rental rate in relation to the part of the premises that cannot be used because of the repairs. These repairs entitle the landlord to increase the rent after 5 years of validity of the rental contract.

Lopez Develop Ltd