Where clients get caught out
Many buyers and tenants sign before confirming that the activity they plan is permitted at that address. Without the activity licence, the business cannot open, and the contract may still bind them.
Before buying or leasing commercial premises
| Check | Why it matters |
|---|---|
| Permitted use | Planning must allow your activity |
| Activity licence | Needed to open; may require works |
| Accessibility and safety | Fire, accessibility and capacity rules |
| Terrace licence | Separate municipal permit for outdoor tables |
| Debts and charges | Registry, IBI, community |
Commercial leases
For premises the parties set the term, rent increases, who pays works and the conditions for leaving early or assigning the lease. We draft or negotiate the lease for landlords and tenants. See landlord and tenant law.
Business transfers
A traspaso transfers an existing business with its premises. We review the lease, the licences, staff obligations and debts before you pay a premium.
Buying through a company and VAT
Commercial purchases are often made through companies and may pay VAT instead of transfer tax when the seller is a business. See corporate lawyer and hotel acquisitions.
Example: commercial property in Mallorca
Based on situations we commonly see; not a specific client. An Italian restaurateur was about to take over a restaurant in Palma's old town for a premium. Our check found that the terrace licence was personal to the outgoing tenant and the kitchen extraction did not comply. The premium was renegotiated and the works were made a condition.
Our collaborators for commercial property in Mallorca
For every service we work with trusted collaborators when a matter needs them: notaries, architects and surveyors, tax advisers at Castell.tax, sworn translators, banks and mortgage brokers, property managers and specialist lawyers in other parts of Spain. You keep one lawyer as your single point of contact, and we coordinate everyone else.
Castell.law is the English and German-speaking practice of Castell Abogados, a law firm in Palma de Mallorca. This page is general information, not advice on a specific case: laws and procedures change, so check your situation with us before acting.
Not sure where you stand? Ask before you sign
Tell us about your matter or send us the documents you have. A lawyer will explain the risks, the options and the cost before you commit to anything.
Questions about commercial property in Mallorca
Can I open any business in a commercial unit?
No, the planning rules and the activity licence must allow your specific activity.
How long can a commercial lease last?
The parties agree the term freely.
What is a traspaso?
The transfer of an existing business and its premises, usually for a premium.
Do commercial properties pay VAT?
Often, when the seller is a business, instead of transfer tax.