Commercial Documentation, EPC and Licenses in the Balearics

Under the Spanish Urban Leases Act (Law 29/1994), effective 1 January 1995, leases for commercial premises in the Balearic Islands are primarily governed by the will of the parties, and subsidiarily by the provisions of Title III of this law and, in its absence, by the Civil Code. Landlords must also comply with energy efficiency documentation requirements under Royal Decree 390/2021.

1. Balearic EPC Certificate and Exemptions

Under Royal Decree 390/2021, effective 3 June 2021, an Energy Performance Certificate (EPC) is required for existing buildings or parts of buildings that are sold or rented to a new tenant, including those intended for commercial use, particularly those with a total useful area exceeding 500 m2. The energy rating label (A to G) from this certificate must be included in all offers, promotions, and advertisements for the sale or lease of the property.

• Exemptions for Specific Buildings: Exemptions apply to certain industrial, defense, and agricultural non-residential buildings, or parts thereof, with low energy demand. This specifically includes areas not requiring thermal comfort conditions, such as workshops and industrial processes.

2. Community of Owners Statutes

Under Law 29/1994, commercial leases are primarily governed by the will of the parties. While the law does not explicitly mandate the disclosure of Community of Owners statutes or specific activity prohibitions, parties are free to include such requirements in their agreement.

In the absence of specific contractual terms regarding community restrictions or property use, the provisions of Title III of the Urban Leases Act apply. Because commercial leases prioritize the will of the parties, it is common practice to address statutory limitations within the lease agreement to ensure clarity between the landlord and the tenant.

3. Signing "Cuerpo Cierto" (Certain Body) and Licensing Responsibilities

The allocation of licensing responsibilities and the use of specific clauses are not explicitly regulated by Law 29/1994 or Royal Decree 390/2021. Instead, these matters are governed by the will of the parties involved in the lease.

• Commercial leases are primarily governed by the agreement reached between the landlord and the tenant.
• Subsidiarily, the provisions of Title III of Law 29/1994 are applied.
• In the absence of specific regulations in Title III, the provisions of the Spanish Civil Code provide the legal framework for the lease agreement.

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