Business Premises Transfer Agreement Spain (Traspaso)

A Business Premises Transfer Agreement Spain (Acuerdo de Traspaso de Local de Negocio) is a formal legal contract by which the current tenant (arrendatario cedente) of a commercial premises in Spain transfers its rights under an existing lease, together with the business assets, goodwill (fondo de comercio), fixtures (instalaciones), licences, and trading position established at those premises, to an incoming party (arrendatario cesionario), with the consent of the landlord (arrendador). The transaction is governed principally by Article 32 of Ley 29/1994 de Arrendamientos Urbanos (LAU) and by the general principles of contract assignment under the Código Civil (CC), particularly Articles 1255, 1526, and 1530.

The traspaso is a distinctly Spanish commercial practice that evolved under Francoism when tenants enjoyed near-permanent tenancy rights and sold those rights as independent commercial assets. Although Ley 29/1994 significantly liberalised commercial lease terms — abolishing the forced renewal (prórroga forzosa) and compulsory traspaso rights of the earlier Decreto Boyer (Real Decreto-ley 2/1985) — the practice of traspaso continues to be common in Spain's commercial property market, particularly for bar and restaurant premises (locales de hostelería), retail shops, and professional clinics in high-footfall areas of major cities.

Under Article 32 LAU, a tenant may transfer (subarrendar o ceder) a commercial lease without the landlord's consent, unless the lease expressly prohibits it — a fundamental departure from residential lease law. However, the landlord is entitled to a 10% increase in the agreed rent upon any transfer (Article 32.2 LAU), and the outgoing tenant remains jointly and severally liable (responsabilidad solidaria) for the new tenant's rent obligations for the remaining lease term unless the landlord expressly releases the cedente. The landlord must be notified in writing within one month of the transfer (Article 32.3 LAU).

The economic substance of a traspaso extends well beyond the lease assignment. The purchase price (precio de traspaso) compensates the outgoing tenant for the business's established customer base (clientela), established goodwill, existing licences (licencias de apertura, licencias ambientales, autorización sanitaria), installed fixtures and equipment, and the commercial advantage of an existing business location. Spanish courts — particularly the Audiencia Provincial de Madrid and the Audiencia Provincial de Barcelona — have consistently held that the precio de traspaso is legally distinct from the lease premium and must be separately documented.

For tax purposes, the traspaso consideration is taxable income for the outgoing tenant under Impuesto sobre Sociedades (IS — Ley 27/2014) or Impuesto sobre la Renta de las Personas Físicas (IRPF — Ley 35/2006) if the cedente is an individual autónomo. The incoming tenant (cesionario) may amortise the traspaso payment as an intangible asset (fondo de comercio) over 10 years under Article 13.3 Ley 27/2014. The transaction is subject to Impuesto sobre Transmisiones Patrimoniales (ITP — Real Decreto Legislativo 1/1993) if conducted between individuals, or Impuesto sobre el Valor Añadido (IVA) under Ley 37/1992 if the cesionario is a VAT-registered business — with possible application of Article 7.1 of Ley 37/1992 (transmission of a going concern — transmisión de empresa — which is outside the scope of IVA if all business assets are transferred).

Where the premises being transferred carry a licencia de actividad or licencia de apertura issued by the Ayuntamiento (local authority) under the applicable Ordenanza Municipal, the cesionario must apply for a change of titularity (cambio de titularidad) with the Ayuntamiento before commencing trading. Failure to update the municipal licence exposes the new occupant to administrative sanctions and potential closure orders under Ley 7/1985 Reguladora de las Bases del Régimen Local.

A Business Premises Transfer Agreement Spain is required whenever a commercial tenant wishes to sell its business and the lease, fixtures, and goodwill at a particular premises to an incoming operator.

The agreement is needed when a bar, café, or restaurant owner (hostelería) wishes to retire or change business and sell the established trading operation including the local authority licencia de actividad, the professional kitchen equipment, and the established clientela to a new operator. In Spain's major cities — Madrid, Barcelona, Seville, and Valencia — traspaso prices for bar premises in high-footfall streets regularly exceed €100,000.

A Traspaso Agreement is required when a retail shop owner (comerciante minorista) in a prime commercial street wishes to transfer the lease and shop-fitting to a successor business. Under Article 32 LAU, the transfer can proceed without the landlord's consent (unless the lease specifically prohibits it), but the landlord must be notified and is entitled to a 10% rent increase.

The agreement is also required when a professional clinic — dental practice (clínica dental), medical centre (centro médico), or physiotherapy clinic (clínica de fisioterapia) — changes ownership and the incoming practitioner wishes to acquire the premises, installed equipment, patient list (sujeto to data protection obligations under RGPD and LOPDGDD 3/2018), and business reputation in the same location.

A Business Premises Transfer Agreement is needed when a franchise (franquicia) location transfers to a new franchisee. In this case, the traspaso must be coordinated with the franchisor's consent under the franchise agreement, and the incoming franchisee must separately execute a new franchise agreement with the franchisor under Ley de Competencia Desleal (Ley 3/1991) and applicable franchise disclosure obligations under Real Decreto 201/2010.

The agreement is required when a company undergoing restructuring (reestructuración empresarial) or insolvency proceedings (concurso de acreedores — Ley Concursal, Real Decreto Legislativo 1/2020) wishes to sell its commercial premises lease and business assets as a going concern (unidad productiva autónoma) under Article 215 of Ley Concursal, which requires court approval from the Juzgado de lo Mercantil handling the concurso.

Parties in Spain should prepare a Business Premises Transfer Agreement Spain (Traspaso) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Ley de Arrendamientos Urbanos (LAU) 29/1994, Spanish tenancy law sets minimum duration (5 years individuals, 7 years entities) and deposit requirements. The Código Civil Articles 1445–1541 govern sale of property. The Ley Hipotecaria governs the Registro de la Propiedad. The Ley 5/2019 (LCCI) regulates mortgage lending with mandatory FEIN/FiAE disclosure. The Impuesto sobre Transmisiones Patrimoniales (ITP) applies to property transfers. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A valid Business Premises Transfer Agreement Spain (Traspaso de Local de Negocio) under LAU Article 32 and the Código Civil must contain the following essential elements to be enforceable and to comply with tax registration requirements.

Identification of Parties: Full names, DNI/NIE/CIF, and addresses of the outgoing tenant (cedente), the incoming tenant (cesionario), and — where landlord consent is obtained — the landlord (arrendador). All three parties should ideally sign the agreement, though LAU Article 32 permits the transfer without landlord signature provided the landlord is notified within one month.

Description of Premises: Full address and cadastral reference (referencia catastral — available from the Sede Electrónica del Catastro) of the commercial premises. The current lease term, commencement date, monthly rent, and any rent review provisions should be described. A copy of the original lease (contrato de arrendamiento) should be annexed.

Assets Included in the Transfer: A detailed inventory (inventario) of all fixtures, fittings, equipment, furniture, and moveable assets included in the traspaso price — essential for tax apportionment between lease rights and tangible assets. Business licences (licencia de actividad, licencia ambiental, autorización sanitaria) to be transferred or applied for by the cesionario must be listed.

Goodwill and Business Records: Whether the cesionario acquires the business name (nombre comercial), client database (base de datos de clientes — subject to RGPD Article 6 consent requirements), social media accounts, and pending commercial contracts. Transfer of a client database requires a legal basis under RGPD Article 6 and LOPDGDD 3/2018 — typically legitimate interest or fresh consent.

Truspaso Price and Payment Terms: The agreed traspaso consideration (precio de traspaso) expressed in euros, and the payment schedule — typically a deposit (señal) at signing and the balance on possession. The price must be separately stated from any VAT (IVA) at 21% or ITP (if applicable) under Real Decreto Legislativo 1/1993.

Rent Increase Notification: Acknowledgement that the landlord is entitled to a 10% rent increase under Article 32.2 LAU upon transfer, and confirmation that the landlord has been or will be notified within one month per Article 32.3 LAU.

Outgoing Tenant's Liability: Provisions addressing the outgoing tenant's continuing joint and several liability (responsabilidad solidaria) under Article 32.3 LAU for the new tenant's rent defaults during the remaining lease term — and, where negotiated, the landlord's release of this liability (finiquito de responsabilidad).

Employment Subrogation: If the commercial premises employs staff, the incoming operator may be obligated to subrogate in the employment contracts of existing workers under Article 44 of the Estatuto de los Trabajadores (RDL 2/2015) — the subrogation obligation arises where there is a transfer of a business unit (transmisión de empresa). Employment law advice should be obtained before completing the traspaso.

Municipal Licence Change: The obligation of the cesionario to apply for cambio de titularidad of the licencia de actividad with the relevant Ayuntamiento before commencing trading, and the risk allocation between the parties if the licence is not transferable.

Governing Law and Disputes: Spanish law (LAU 29/1994, Código Civil). Disputes resolved before the Juzgados de Primera Instancia with jurisdiction over the premises location, or before the Juzgados de lo Mercantil if the traspaso forms part of a larger business sale.

Forms-legal.com provides this Business Premises Transfer Agreement Spain template as a practical starting point. Given the complexity of lease law, tax treatment, employment subrogation, and municipal licensing, all traspaso transactions should be reviewed by a qualified abogado and asesor fiscal before execution.

Under the Ley de Arrendamientos Urbanos (LAU) 29/1994, Spanish tenancy law sets minimum duration (5 years individuals, 7 years entities) and deposit requirements. The Código Civil Articles 1445–1541 govern sale of property. The Ley Hipotecaria governs the Registro de la Propiedad. The Ley 5/2019 (LCCI) regulates mortgage lending with mandatory FEIN/FiAE disclosure. The Impuesto sobre Transmisiones Patrimoniales (ITP) applies to property transfers.