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 LAU, 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.

Mandatory AVRA Deposit Registry

Despite general trends toward administrative simplification, the obligation for commercial landlords in Andalusia to deposit the mandatory cash bond with the Agencia de Vivienda y Rehabilitación de Andalucía (AVRA) remains in full effect as of 2026.

Landlords are strictly required to lodge the two-month cash fianza with AVRA within 30 days of contract signing (or the start of the lease). This is done using the standard regional tax forms (typically Modelo 806). Failure to comply is considered a serious administrative infraction, punishable by fines ranging from 50% to 150% of the bond amount, plus late payment interest.

While the landlord retains the right to hold any additional guarantees (like bank guarantees or extra cash deposits beyond the legal minimum) in their own accounts, the primary two-month fianza must be under regional custody.

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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