Renting Commercial Property in Madrid – Legal Tips for Foreign Entrepreneurs

🇪🇸 Can Foreigners Rent Business Premises in Madrid?

Yes — both foreign-owned companies (SL) and freelancers (autónomos) can legally rent:

✅ Office space
✅ Retail or storefront premises
✅ Industrial warehouses or coworking facilities

Renting commercial property in Madrid requires understanding Spanish leasing laws and local licensing rules.


📄 Types of Commercial Leases in Madrid

Lease Type Features
Arrendamiento de local Standard business lease (most common)
Coworking contract Flexible, no legal permanence
Industrial lease For manufacturing, logistics

📌 Business leases are governed by the Ley de Arrendamientos Urbanos (LAU) and Código Civil — not the same rules as residential leases.


📝 Key Terms in a Madrid Commercial Lease

  1. Use clause – Must specify permitted business activities

  2. License responsibility – Landlord or tenant must obtain operating license

  3. Duration – Often 1–5 years with automatic renewals

  4. Rent & deposit – Typically 2 months’ deposit, plus advance rent

  5. Maintenance clause – Clarify who pays for repairs, services, etc.

  6. Termination notice – Usually 1–2 months required

💡 Always include a legal Spanish version of the lease — English versions are not enforceable in court.


🧑‍💼 Licensing and Permits in Madrid

Before you can legally operate from a commercial location, you may need:

Permit Type Applies To
Licencia de apertura Any physical business location
Declaración responsable Faster self-certification route for many businesses
Health & safety certificates Required for food, medical, fitness, etc.
Signage permit For exterior signs in central Madrid

We work with Madrid Ayuntamiento (City Hall) to manage local permits and inspections.


🏦 Can I Rent Premises Before the Company Is Formed?

Yes — but the lease must include:

✅ Future company name and CIF once incorporated
✅ Personal guarantor (typically the founder)
✅ Option to assign the lease to the SL after registration

We help draft transitional lease clauses to protect your business during setup.


❌ Common Mistakes When Renting in Madrid

⛔ Signing without verifying commercial zoning or permitted use
⛔ Not including clause for VAT on rent (21%)
⛔ Assuming you can sublease or renovate without consent
⛔ Ignoring “key money” or goodwill payments (sometimes demanded upfront)
⛔ Failing to register the lease when required (for long leases)


📌 Lease Registration in Madrid

Leases over 6 years must be registered at the Registro de la Propiedad (Property Registry).

  • Optional for shorter leases

  • Useful for added legal protection (especially for renovations or resale rights)


🧑‍💼 Our Commercial Leasing Services in Madrid

Borderless Lawyers helps:

✅ Review and negotiate lease contracts in Spanish
✅ Verify zoning and license requirements
✅ Draft clauses for pre-formation rental
✅ Apply for all permits and declarations
✅ Assist with notary registration and municipal filings


📞 Renting in Madrid? Secure Your Lease Legally

We protect foreign clients renting offices, shops, and commercial premises in Madrid — with full legal guidance from contract to licensing.

👉 Contact us to rent commercial property in Madrid with confidence.

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