Extremadura Commercial Landlord-Tenant Laws: SECURITY DEPOSITS

This document outlines the statutory requirements for commercial security deposits (fianzas) in Extremadura, Spain, governed primarily by the Spanish Urban Leases Act (Ley de Arrendamientos Urbanos - LAU), which came into effect on 1 January 1995.

Statutory Deposit Requirements (Fianza)

In Extremadura, commercial leases (arrendamientos para uso distinto del de vivienda) are subject to specific regulations regarding security deposits:

1. Mandatory Minimum Deposit: Under Article 36.1 of the LAU, it is mandatory to collect a cash security deposit equivalent to two months' rent for commercial properties.
2. Lodgement Requirement: Contrary to common misconception, the statutory 2-month cash deposit must be deposited with the competent regional housing authority in Extremadura (Caja General de Depósitos de la Comunidad Autónoma de Extremadura), as mandated by Law 11/2019, of April 11, on the promotion and access to housing in Extremadura.
3. Additional Guarantees: Landlords and tenants may freely negotiate additional guarantees (garantías adicionales) to ensure fulfillment of lease obligations. These can be in the form of bank guarantees, personal guarantees, or additional cash deposits, and are held directly by the landlord.

Enforcement and Return

According to the LAU and supplementary regional laws:

• Return Timeline: Upon termination of the lease and vacation of the premises, the landlord has one month to return the fianza balance. If not returned within this timeframe, the balance accrues the legal interest rate (LAU Art. 36.4).
• Deductions: Deductions can be made for unpaid rent, unpaid utilities, or damages to the property beyond normal wear and tear. All deductions must be explicitly documented and justified.
• Jurisdiction: Disputes regarding commercial security deposits are resolved in the civil courts of first instance (Juzgados de Primera Instancia) in the judicial district where the property is located in Extremadura, in accordance with the Spanish Civil Procedure Act (Ley de Enjuiciamiento Civil).