Who pays for works on rented commercial premises?

Question

José Manuel Alburquerque · Accepted Answer

First, whatever the contract says. Almost anything can be agreed for commercial premises and it is common for the tenant to accept the premises as they are and pay for the works to adapt them to the business. If the contract says nothing, the repairs needed to keep the premises in good repair are the responsibility of the landlord, who cannot raise the rent for them, unless the damage was caused by the tenant. Minor repairs for wear and tear from everyday use are the tenant's responsibility. If the landlord carries out improvement works, the tenant has to put up with them and the rent may go up. If the contract says nothing The law applies to commercial premises the same rules on works as for homes: The repairs needed for the premises to remain fit for the agreed use are paid for by the landlord, without raising the rent. If the tenant caused the deterioration, the tenant pays. Minor repairs required by wear and tear from ordinary use are the tenant's responsibility. If a repair is urgent to prevent greater damage, the tenant can carry it out after first notifying the landlord and then claim back from the landlord what it cost. If repairs to keep the premises fit for use, or works ordered by the authorities, make the premises unusable, the tenant can suspend the contract while they last, paying no rent during that time, or end the tenancy early without compensation. Works to adapt the premises to the business, such as the smoke extraction flue, the toilets or soundproofing, are usually paid for by the tenant if nothing is agreed, because they serve the tenant's own activity. It is a different matter if the premises are not fit for the agreed use because of a defect in the premises themselves. Special levies charged by the owners' association for works on the building are for the landlord to pay, unless the contract clearly states that the tenant pays them. Improvement works by the landlord The tenant has to put up with improvement works that cannot wait until the end of the contract. The landlord must give the tenant three months' written notice, stating the works, when they will start, how long they will last and what they will cost. Within the month after the notice, the tenant can end the tenancy early, unless the works do not affect the tenant or affect the tenant only slightly. If the works prevent the tenant from using part of the premises, the tenant can ask for a proportionate reduction in the rent. For commercial premises, the landlord can raise the rent for these improvements from the start of the contract. The annual increase is calculated by applying to the money invested, less any public grants, the statutory interest rate (“interés legal del dinero”) in force when the works are completed, plus three points. It cannot exceed 20 % of the rent currently being paid. To collect it, the landlord must notify it in writing with the calculation and the supporting documents for the cost. It is payable from the following month. For example, with works costing 30.000 euros completed in 2026, a year in which the statutory interest rate is 3,25 %, a rate of 6,25 % would apply. The rent would go up by 1.875 euros a year, 156,25 euros a month. With a rent of 1.000 euros a month, the 20 % limit is 200 euros a month, so the whole increase would fit within it. A new uncertainty and what should be agreed Since 8 October 2026, in residential tenancies, the tenant can request a necessary repair in writing with a reasonable quote. If the landlord does not reply within fifteen calendar days or refuses without good reason, the tenant can carry out the repair and deduct its cost from the following rent payments. The law applies the residential repair rules to commercial premises without excluding this one, so it cannot be ruled out that it might be relied on by the tenant of commercial premises whose contract, signed on or after that date, does not deal with repairs. There are still no judgments clarifying the point. That is why the contract should state who carries out and pays for each type of works, within what time, what happens to the works when the contract ends and whether they are offset by a rent-free period, a period in which the tenant pays no rent or pays less.