Commercial Documentation, IAE and EPC in Canary Premises

Leasing commercial premises or industrial warehouses in Canary cities like Santa Cruz de Tenerife or Las Palmas de Gran Canaria requires strict adherence to technical and tax documentation. Governed primarily by the Ley 29/1994, de 24 de noviembre, de Arrendamientos Urbanos (LAU), which became effective on 1 January 1995, failure to provide mandatory certificates or incorrect tax registration can lead to significant administrative sanctions and judicial disputes in the Juzgados de Primera Instancia.

1. Energy Efficiency: EPC Obligations and Fines

Under Royal Decree 390/2021, the Energy Performance Certificate (EPC) is a mandatory document for any commercial property offered for rent or sale. The energy label (rating from A to G) must be clearly visible in all online advertisements and physical signage.

Non-compliance attracts administrative fines regulated by Real Decreto Legislativo 7/2015 (consolidated Land Law):

• Minor Infractions: €300 to €600 (e.g., advertising without the label).
• Serious Infractions: €601 to €1,000 (e.g., failing to register the certificate).
• Very Serious Infractions: €1,001 to €6,000 (e.g., falsifying results).

The "Raw Premises" (En Bruto) Exemption: Premises delivered as a "shell" (without electrical installations, plumbing, or climate control) are exempt from the EPC requirement at the time of lease. Since the energy rating cannot be calculated without these systems, the law allows the certificate to be deferred until the tenant completes the fit-out works and the final activity is defined.

2. Tax Documentation: IAE and IGIC

Commercial landlords in the Canary Islands must register with the Tax Agency (Agencia Tributaria) under the Impuesto sobre Actividades Económicas (IAE), specifically Epigraph 861.2 (Leasing of urban properties) as per RDL 1175/1990.

• IGIC Compliance: Unlike mainland Spain (VAT/IVA), Canary leases are subject to IGIC (General Canary Indirect Tax), established by Law 20/1991, usually at the 7% rate.
• Withholding: Tenants who are companies or professionals must withhold a percentage of the rent (Retención) as a prepayment to the Tax Agency on behalf of the landlord.

3. The "As Is" (Cuerpo Cierto) Delivery Clause

When delivering properties that require renovation or have aesthetic deficiencies, it is standard practice to include a "Cuerpo Cierto" (As Is) clause, referencing Article 1471 of the Civil Code:

• The tenant accepts the premises in their current state and physical location.
• This clause generally waives the tenant's right to claim for superficial defects or suitability for a specific commercial purpose, though it cannot fully waive liability for hidden structural defects (vicios ocultos) that the landlord knowingly concealed (Art. 1484 Civil Code).

4. Municipal Licenses and Responsibility

Landlords should explicitly decouple the lease validity from the tenant's ability to obtain municipal permits.

• Licencia de Apertura: The responsibility for obtaining the opening license from the local City Council (Ayuntamiento) rests solely with the tenant.
• Contractual Shielding: Include a clause stating the landlord does not guarantee that the activity intended by the tenant is permissible under local zoning laws. This prevents the tenant from terminating the lease without penalty if their specific license application is denied.

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