🇪🇸 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
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Use clause – Must specify permitted business activities
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License responsibility – Landlord or tenant must obtain operating license
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Duration – Often 1–5 years with automatic renewals
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Rent & deposit – Typically 2 months’ deposit, plus advance rent
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Maintenance clause – Clarify who pays for repairs, services, etc.
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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).
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Optional for shorter leases
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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.