SPANISH URBAN RENTAL LAW 2019. TITLE III. Rents for other use than housing

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Article 29 Disposal of the leased property

The purchaser of the leased property will be subrogated to the rights and obligations of the lessor, unless the purchaser meets the requirements of Article 34 of the Mortgage Law.

Article 30 Conservation, improvement and works of the lessee

The provisions of articles 21, 22, 23 and 26 of this law shall also apply to leases regulated by this Title. The provisions of article 19 shall also be applicable from the beginning of the lease.

Article 31 Pre-emptive right of acquisition

The provisions of Article 25 of this law shall apply to the leases regulated by this Title.

Article 32 Assignment of the contract and sublease

Where a business or professional activity is carried out on the leased property, the lessee may sublet the property or assign the lease without the consent of the lessor.

1. The lessor is entitled to a rent increase of 10 per cent of the current rent in the event of a partial sublease, and 20 per cent in the event of the transfer of the contract or the total sublease of the leased property.
2. A change in the person of the lessee as a result of the merger, transformation or spin-off of the leasing company shall not be considered a transfer, but the lessor shall be entitled to the increase in rent provided for in the previous section.
3. Both the assignment and the sublease must be notified in a reliable manner to the lessor within one month from the date on which they were agreed.

Article 33 Death of the lessee

In the event of the death of the lessee, when a business or professional activity is carried out in the premises, the heir or legatee who continues to carry out the activity may be subrogated to the rights and obligations of the lessee until the termination of the contract.

The subrogation must be notified in writing to the lessor within two months of the date of death of the lessee.

Article 34 Tenant Indemnification

The extinction, due to the expiration of the conventional term of the lease of a property in which during the last five years a commercial activity of sale to the public has been exercised, will give the lessee the right to an indemnity at the expense of the lessor, provided that the lessee has stated four months before the expiration of the term its will to renew the contract for a minimum of five more years and for a market rent. In the absence of an agreement, the one determined for this purpose by the arbitrator appointed by the parties shall be considered a market rent.

The amount of the indemnity shall be determined as follows:

1. If the lessee commences in the same municipality, within six months following the expiration of the lease, the exercise of the same activity to which he was dedicated, the compensation shall include the expenses of the relocation and the damages derived from the loss of clientele occurred with respect to that which he had in the previous premises, calculated with respect to that had during the first six months of the new activity.
   If the lessee starts a different activity within the six months following the termination of the lease or does not start any activity at all, and the lessor or a third party develops in the property within the same period the same activity or a similar one developed by the lessee, the compensation will be one monthly payment per year of duration of the contract, with a maximum of eighteen monthly payments.
   Activities that are typically eligible for benefits are considered to be related, although only part of the clientele captured by the activity carried out by the lessee.

In the event of the parties failing to reach an agreement on the amount of the compensation, it shall be fixed by the arbitrator appointed by the parties.

Article 35 Resolution in its own right

The lessor may terminate the contract by operation of law for the reasons provided for in letters a), b), d) and e) of paragraph 2 of Article 27 and for the transfer or sublease of the premises in breach of the provisions of Article 32.

Article 35 drafted by section nineteen of the first article of Law 4/2013, of 4 June, on measures to make the housing rental market more flexible and encourage it (“B.O.E.” 5 June). Validity: 6 June 2013

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