Security Deposits for Commercial Properties in Andalusia

Renting out premises for use other than housing (commercial spaces) requires a higher degree of financial diligence, given that the wear and tear and the risks associated with a business are generally greater. The security deposit (fianza) for commercial locales, offices, and industrial warehouses in Andalusia operates under the Spanish Urban Leases Act (effective 1 January 1995), but free from the severe limitations on additional guarantees found in residential rentals.

Mandatory Deposit: Two Months

According to Article 36 of the national Spanish Urban Leases Act, an unavoidable requirement when signing a lease is the demand and provision of a cash security deposit.

For leases whose use is distinct from housing (retail shops, warehouses, offices, clinics), the mandatory, legal minimum for this fianza is the equivalent of TWO months rent, compared to the single month required for primary residences.

Important: When calculating the mandatory fianza, you must not include the tax burden. The deposit should equal two months of the base rent, free of the 21% VAT (IVA) and any IRPF withholdings.

Additional Guarantees: No Legal Limits

Because commercial leases fall under Title III of the LAU—governed by the principle of "freedom of pacts" (libertad de pactos)—the landlord and the business owner are authorized to add any number of financial guarantees to the required two-month cash deposit.

Unlike residential contracts (which cap extra guarantees at two months rent), an Andalusian corporate lease allows for uncontestable supplementary guarantees agreed upon by both parties. Common examples include:

• Six months rent held in a blocked bank account.
• A first-demand bank aval (bank guarantee) for an entire year's rent.
• Corporate guarantees from parent companies holding the landlord harmless against unexpected business bankruptcies or early abandonment.

Abolition of the Mandatory AVRA Deposit Registry

Effective 24 January 2026, the Andalusian Housing Law 5/2025 (Ley de Vivienda de Andalucía) suppressed the historical obligation for commercial landlords to deposit the mandatory cash bond with the Agencia de Vivienda y Rehabilitación de Andalucía (AVRA).

Landlords are no longer required to lodge the two-month cash fianza with the regional administration. Instead, the landlord retains direct custody of the funds throughout the lease term. This administrative simplification applies to all new contracts signed on or after the effective date. For contracts signed prior to this date, the deposit remains under AVRA custody and its return must still be processed through the agency upon termination of the lease.

While the landlord now retains both the primary fianza and any additional guarantees (like bank guarantees or extra cash deposits), the obligation to demand the two-month minimum remains a statutory requirement under national law (Art. 36 LAU).

Updating the Deposit Amount

For commercial contracts that last longer than five years (or seven years if the landlord is a legal entity), it is legally required to update the fianza:

• The landlord can explicitly demand that the tenant adjust the deposited cash amount so that it accurately reflects the current equivalent of two months rent (taking into account years of CPI/rent increases).
• Conversely, if the rent has dropped, the tenant can request a partial refund to match the new lowered base rate.

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