Commercial real estate in Spain

Commercial real estate in Spain (local comercial) refers to buildings and premises not intended for residential use. Such properties can be used to run your own business or rented out to other entrepreneurs to generate rental income. To obtain commercial property status, the premises must be evaluated by the municipal authorities to ensure compliance with a number of technical requirements. After this, the owner can obtain permission and a license to conduct a specific type of commercial activity (retail, hospitality, etc.).

Sale of Business Property in Spain

The sale of commercial real estate in Spain is one of the areas of activity of Spanish Life agency. The agency’s experts carry out legal checks of commercial properties listed for sale, including verification of their status in the registry, and provide full transaction support at every stage. The main stages of the transaction are:

1. Signing a reservation contract with a payment (usually 1% of the property’s price) to confirm seriousness of intent. From this point, the property is no longer offered to other potential buyers, and in-depth checks and preparation of documents begin.
2. Signing a letter of intent with a 10% deposit.
3. Signing the purchase contract with notarial registration, paying the full amount, duties, and taxes.

Types of Commercial Real Estate

Business property in Spain includes a wide range of facilities for different types of commercial activity:

• industrial premises;
• logistics complexes, warehouses;
• shopping centers, stores, pavilions;
• service businesses – hair salons, beauty salons, repair workshops, etc.;
• premises for restaurants, cafes, nightclubs with bars;
• hotels, hostels;
• office spaces;
• car repair shops, gas stations;
• garages, hangars, parking lots.

Commercial real estate in Spain can have free designation – the buyer decides what is more profitable to open in the space: an office, a beauty salon, or a workshop. In addition, the practice of traspaso – the sale of a turnkey business (premises, furniture and equipment, license for a specific business, trained staff, and customer base) – is widespread in Spain.

Prices for Business Real Estate in Spain

Commercial real estate in Spain is relatively inexpensive compared to residential property. For example, the price of a commercial property in Alicante is around €722 per square meter, while the price per m² of the cheapest apartments is at least twice as high. However, commercial premises often cover several hundred square meters, so the total cost of the property can be significant. There are also much more expensive properties, with prices depending on the region of Spain and the overall condition of the property. For industrial facilities and warehouses, proximity to highways is important; for HoReCa (hotels, restaurants), proximity to the sea and tourist attractions; and for stores, a ground-floor location in a high-footfall area is crucial. A turnkey business (traspaso) may cost more than an empty property or less – if the business is unprofitable and comes with encumbrances (debts, loans that pass to the new owner). Therefore, it is essential to work with real estate agencies that, in addition to realtors, have lawyers and financial experts on staff to assess the business and evaluate profitability. When purchasing new commercial property in Spain from a developer, 21% VAT (IVA) is charged on the transaction amount. For secondary commercial property, the purchase tax in different regions ranges from 5–10%. During the COVID-19 pandemic, prices for commercial real estate in Spain (especially in regions dependent on tourism and for large office spaces) dropped significantly, but since 2021 they have been rising again and are now back to pre-2019 levels.

Advantages of Buying Business Premises

Purchasing commercial real estate in Spain, where historically favorable conditions exist for small and medium-sized businesses, is a profitable investment. If you plan to run your own business, there are good prospects for development. Key features of commercial real estate transactions in Spain include:

• the possibility of not just buying a property, but acquiring an existing business (traspaso). This allows for a quick start, reduced marketing costs, and tax savings. However, such deals may have pitfalls, requiring
• financial due diligence and reputation checks of the business;
• if the current owner rents out the commercial property in Spain and you plan to acquire it for the same purpose, the long-term contract with the tenant will be transferred to your name – making it convenient, as you start receiving rental income immediately.

Other advantages of buying commercial property in Spain:

• a developed and stable economy ensures high returns on commercial real estate (an average of 6.5% annually nationwide);
• purchasing profitable commercial property with high liquidity is a smart investment for foreign buyers, protecting funds from devaluation; prices are quite affordable;
• you can obtain a mortgage – the rental income from commercial property in Spain usually covers mortgage interest payments and still leaves profit.

Where to Buy Commercial Real Estate in Spain

If you plan to buy commercial real estate in Spain, it is advisable to start with a consultation with experts who can explain the specifics of doing business in Spain, the costs of maintaining commercial property, and the average income from business activities in different regions of the country:

• if you want to earn income from hospitality or retail businesses in Spain, choose properties in developed tourist regions on the coast (Costa Blanca, Costa del Sol);
• stable rental income comes from commercial properties in major cities and large business centers such as Madrid and Barcelona.

If you plan to rent out commercial property, keep in mind that in large cities and prestigious areas rental yields may be lower, but tenants are more reliable and usually sign long-term contracts. In regions with higher yields, finding tenants may be more challenging. You can receive expert advice and buy business real estate in Spain with the help of Spanish Life agency. In our catalog, you will find attractive offers with photos, detailed descriptions, and maps showing the location of each property. We also provide search and selection services for commercial properties in Spain according to buyer requests. We will help assess the profitability of an object based on market analysis, arrange a mortgage loan if you do not have the full amount, explain all taxes for buyers and owners of commercial real estate in Spain, and accompany you at every stage of the transaction.