SPAIN Law and Practice Contributed by: Marta González-Llera, Toni Barios, Jorge del Castillo and Rafael Baena, Cases & Lacambra
ant must deliver to the landlord a rent guarantee equivalent to one month’s rent for residential leases and two months’ rent for commercial leases. This deposit is held by the landlord (or deposited in a public administration, depending on the region), to be returned to the tenant upon termination of the lease agreement. The parties may also agree additional guaran - tees to cover payment defaults by the tenant (ie, bank guarantees, comfort letters, deposits, or specific default insurances). However, additional guarantees in residential leases shall not exceed two months of rent. 6.17 Right to Occupy After Termination or Expiry of a Lease When the initial term expires, lease agreements are automatically extended by one year if the rent was fixed annually or extended by one month if the rent was fixed monthly, provided that: • the parties have not agreed on anything in this regard; and • the tenant stays in the leased property more than 15 days after the termination of the lease agreement without express opposition from the landlord. This automatic renewal is named “tacit holding over” ( tácita reconducción ), laid down by Sec - tion 1566 of the Spanish Civil Code. The “tacit holding over” may be expressly excluded by mutual agreement of the parties. 6.18 Right to Assign a Leasehold Interest In commercial leases and unless otherwise agreed by the parties, the tenant may:
• assign its position in the lease agreement to any third party without the landlord’s consent; and • sublease the premises. The landlord may increase the rent by 10% (in the case of partial subleases) or in an amount of 20% (for total subleases or assignments). In residential leases, and unless otherwise agreed by the parties, any such assignment or sublease shall be expressly authorised by the landlord. 6.19 Right to Terminate a Lease The landlord is entitled to terminate the lease agreement if the tenant, among other reasons: • defaults on rent payment or any other amounts assumed by the tenant or which corresponds to the tenant; • subleases or transfers totally or partially the leased property without prior consent from the landlord; and • causes harm to the leased property due to wilful misconduct or gross negligence. The tenant is entitled to terminate the lease agreement if the landlord: • interferes in the use of the leased property; and • fails to carry out the necessary repairs to preserve the property in a suitable condition for its normal use 6.20 Registration Requirements Lease agreements may be registered in the Land Registry; however, it is not mandatory. Unregis - tered urban leases may not be effective against a third-party purchaser registering their rights if
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