Can the tenant sublet commercial premises or part of them?

Yes, if a business or professional activity is carried on in the premises and the contract does not prohibit it. The tenant does not need the landlord's permission, but must notify the landlord of the sublease by a means that provides reliable proof, such as a “burofax”, a certified letter with proof of content, within the month after it is signed. The landlord can raise the rent by 10 % if part of the premises is sublet and by 20 % if the premises are sublet in full. For commercial premises what was agreed prevails, so the contract may prohibit subletting or require the landlord's consent.

Alburquerque Abogados

José Manuel Alburquerque
Landlord and tenant

How it works

Subletting means that the tenant lets all or part of the premises to someone else while remaining the tenant. It is different from assigning the lease, where the newcomer takes the tenant's place. A common example is a shop that lets a space to another brand or an office that lets a room to another professional. Unless the contract says otherwise, the rules are as follows:

  • The increase is calculated on the rent currently being paid. With a rent of 3.000 euros a month and a partial sublease, the rent could rise to 3.300 euros. The landlord has to ask for the increase.
  • The tenant remains the tenant and is answerable to the landlord for the whole contract.
  • The subtenant is also answerable to the landlord for the use and upkeep of the premises. As for the rent, the subtenant is only liable up to what it owes the tenant at the time the landlord claims payment.
  • The sublease ends when the head lease ends.
  • For commercial premises there is no cap on what the tenant may charge the subtenant.
  • The subtenant needs its own municipal permit for its activity, which must fall within the use agreed in the head lease.

If the rules are not followed

If the tenant sublets without notifying the landlord, or despite the contract prohibiting it, the landlord can terminate the contract, that is, bring it to an end. If the tenant does not leave, the landlord will have to ask the court to order the return of the premises. Before suing, the law requires an attempt at negotiation. For the landlord, the prudent course is for the contract to state whether subletting is allowed, on what conditions and with what increase.

If there is no business in the premises

If the premises are not used for a business or professional activity, for example for storage by a private individual, this rule of the “Ley de Arrendamientos Urbanos” (LAU), Spain's urban tenancies act, does not apply, but the Spanish Civil Code (“Código civil”) does. The tenant can sublet all or part of the premises if the contract does not expressly prohibit it and remains answerable to the landlord under the contract.

This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.