Commercial Documentation, EPC and Licenses in the Balearics

Leasing commercial premises in the Balearic Islands requires landlords to provide specific documentation to tenants. Failing to disclose mandatory information can expose the landlord to administrative fines and potential liabilities under Spanish law.

1. Balearic EPC Certificate and Exemptions

Just as in residential leases, offering a commercial property for rent in the Balearic Islands requires compliance with energy efficiency regulations. Landlords must obtain and disclose the Energy Performance Certificate (EPC) before marketing the property. The energy rating label (A to G) must be exhibited in all advertisements.

• Exemptions for Unconditioned Premises: Under Royal Decree 390/2021, an EPC is generally required for the lease of buildings or parts of buildings. While there are specific exemptions for certain industrial, agricultural, or isolated buildings with very low energy demand, there is no blanket "loophole" for all raw or unconditioned commercial premises. The obligation to provide an EPC applies to most standard commercial leases.

2. Community of Owners Statutes

One of the most critical disclosure requirements for commercial properties, especially those intended for hospitality in the Balearic Islands, involves the rules set by the Community of Owners.

If the Community of Owners statutes explicitly prohibit certain commercial activities—such as operating a restaurant, installing a smoke extraction vent, or running a nightclub—the landlord must disclose these restrictions to the prospective tenant. Failure to disclose such statutory limitations can lead to the tenant claiming a defect in consent (vicio en el consentimiento). This could result in the nullity of the contract and expose the landlord to claims for damages if the tenant is unable to obtain the necessary municipal licenses to operate their intended business. It is highly recommended to attach a copy of the Community Statutes to the lease agreement.

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

To clearly define responsibilities regarding the property's suitability for a specific commercial activity:

• Landlords often include a clause stating the property is leased as a "Cuerpo Cierto" (as a certain body or "as is").
• This transfers the responsibility to the tenant to verify that the premises meet the specific bureaucratic and technical requirements of the local municipality (such as the City Council of Palma or Ibiza) for obtaining the necessary Opening License (Licencia de Apertura).
• By doing so, the landlord is generally exempted from liability if the local authorities deny the tenant the required permissions or licenses to conduct their intended business activity, provided the landlord did not conceal any material defects or community restrictions.

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