Galicia Commercial Landlord-Tenant Laws: SECURITY DEPOSITS

Commercial security deposits in Galicia are strictly governed by the Spanish Urban Leases Act (LAU), effective since 1 January 1995, and the regional Housing Act of Galicia (Law 8/2012). Compliance requires the mandatory collection and administrative deposit of a cash bond (fianza) to ensure jurisdictional validity and avoid administrative penalties.

The Legal Landscape of Galicia

In Galicia, the dual-layered regulatory framework mandates that landlords adhere to both national lease standards (LAU) and specific regional administrative procedures for bond management. Failure to comply with these statutory requirements can lead to fines from the Galician administration and the invalidation of eviction proceedings.

Statutory Compliance Standards

1. Mandatory Amount: Article 36.1 of the LAU stipulates a mandatory cash bond of two months' rent for non-residential (commercial) leases.
2. Administrative Deposit: Law 8/2012 (Galicia) requires this bond to be deposited with the Instituto Galego da Vivenda e Solo (IGVS) within one month of the lease execution.
3. Refund Timelines: The IGVS must return the bond within one month of the lease termination request; late refunds accrue interest at the legal rate.
4. Additional Guarantees: Parties may freely agree on additional security (cash or bank guarantees), which remain in the landlord's custody rather than the IGVS.