Ibiza has few vacant commercial units and strong demand in spring, when everyone wants to open for the season. That rush is what leads to leases that weigh on a business for years. A commercial lease in Spain is almost entirely negotiable: the law leaves the parties a lot of freedom, so whatever is not agreed in writing does not exist.
1. Before talking about rent: make sure your activity fits the unit
This is the most expensive mistake and the most common one. A unit can be available and still not allow your activity: because of town planning, because of the building's community rules, or because it does not meet the technical conditions the licence requires.
- Planning use: the municipal plan must allow that activity on that street and on that floor.
- Community rules: some buildings ban hospitality, cooking smells or late opening hours.
- Technical conditions: a smoke extraction duct if you will cook, capacity, accessibility, toilets, soundproofing if there is music.
- Previous licence: if the unit already had a similar licensed activity the process is usually shorter, but check that it is still valid and what it covers.
The safe approach is to have a technician confirm it before signing, or to sign with a clause that lets you walk away if the licence is refused.
2. What Spanish law says about commercial leases
Under the Spanish Urban Leases Act (LAU), renting a commercial unit is a lease for a use other than housing. It is governed first by what the parties agree, then by the Act's rules for this type of contract and, beyond that, by the Civil Code. In practice, term, extensions, rent reviews, works and expenses depend on what you sign.
- Term: free. There is no legal minimum; if you need years to recover your fit-out, ask for them in writing.
- Deposit: the law requires two months' rent in cash.
- Additional guarantees: bank guarantee, extra deposit or personal guarantee. For commercial units there is no legal cap, so they are negotiated.
- Assignment and subletting: if the lease is silent, you can assign it or sublet by notifying the landlord, who is entitled to raise the rent by 20% on assignment. Many leases forbid it or require consent: read it with the day you may want to sell your business in mind.
- Goodwill compensation: the law provides for it in some cases when long leases end, but leases commonly exclude it.
3. What you pay on top of the rent
| Item | How it works |
|---|---|
| VAT | Commercial rent carries 21% VAT, paid by the tenant. |
| Income tax withholding | If you rent as a company or self-employed, you usually withhold 19% of the rent and pay it to the tax office on the landlord's behalf. |
| Deposit | Two months' rent, returned at the end if the unit is handed back in good condition. |
| Additional guarantee | Whatever is agreed: three to six months as a bank guarantee or deposit is common. |
| Recoverable costs | Property tax (IBI), community fees, waste tax: you only pay them if the lease says so. |
| Rent review | Whatever is agreed, usually yearly and linked to an index. Without a clause, the rent is not reviewed. |
4. What is worth negotiating
- A rent-free period while you do the works and apply for the licence. For a shell unit, several months is a normal request.
- An exit clause if the activity licence is refused.
- A term and extensions long enough to recover your investment, and a reasonable minimum period.
- Who pays for which works: fitting the unit to your business is usually yours, but structural works and general installations should not be.
- The right to assign or sell the business in the future, with clear conditions. It is what will give value to your investment the day you want to leave.
- Signs, awnings and terrace: what the community allows and who applies for each.
- The condition of the unit at handover, in writing and with photos, so that getting the deposit back is not an argument.
5. What the landlord will ask you for
In Ibiza landlords choose among several candidates, and the best-presented one wins. Prepare a short dossier: who you are, what business you will open, your experience, how you are funding it and what guarantees you offer. A clear, solvent project often gets better terms than a slightly higher rent offer.
6. A realistic timeline
If you want to open in May, the search starts in autumn. Finding the unit, negotiating, signing, drafting the technical project, getting the licence and doing the works easily takes four to six months, and longer for hospitality. Those who start looking in March often end up opening mid-season.
7. How we help
- We show you the units for rent that suit your activity, including those that come in before they are advertised.
- We check with the landlord the permitted use, the previous licence and the community's restrictions.
- We negotiate rent, rent-free period, guarantees and term.
- We present your project to the landlord so that you are the one chosen.
The units we currently have for rent are under «Units to rent». If none fits, tell us what you need under «Looking for a unit» and we will let you know when something comes in.
Note: general information only. Every lease has its own particulars; consult a lawyer before signing.
