Businessmen who want to open a company in Spain for rental and leasing activities have to get acquainted with the legislation in this field. In the case of businesses developing leasing activities, there are several rules regulating the sector and the main regulations are given by the Urban Leases Act and the Ground Leases Act; our team of specialists can assist with advice on how to register this type of company.
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What are urban leases and ground leases in Spain?
An urban lease refers to the lease of any type of real estate property, for commercial or residential purposes. The main rule of law which applies in the case of an urban lease is given by the agreement established between a landlord and a tenant, but specific regulations of the Urban Leases Act will also apply as well as regulations prescribed by Spanish Civil Code.
Ground leases in Spain define the lease agreements that are established for the usage of land for various purposes – the right to use specific types of machinery of a given parcel of land as well as the development of agricultural activities. Our team of specialists in company formation in Spain can assist foreign businessmen with advice on the types of leases that can be signed as ground leases.
It is important to know that leases can also be applied in the accommodation sector, although this situation is not very common in this country. In this case, the parties entering a lease relation may establish a management contract or lease the respective accommodation unit.
What are the tax implications for commercial leases in Spain?
Businesses registered as leasing operators can also lease real estate properties, for commercial or residential purposes. In the case of real estate leases for commercial purposes, it is necessary to know that the value added tax (VAT) will apply, no exemption being granted in this case. At the same time, the stamp duty can be imposed.
What types of Spanish leases are considered commercial properties?
When entering business activities related to the lease of commercial properties, it will be necessary to know which categories of real estate properties fall under this description. Our team of consultants in company registration in Spain can provide an in-depth presentation regarding this matter and some of the most important types of commercial properties are presented below:
- premises that are used as parking spaces, land that is used for advertising purposes or for organizing exhibitions;
- any type of warehouse that is used for the storage of goods and products;
- residential properties (houses and apartments) that are used as accommodation units or which can be redesigned as premises for cleaning or laundry services;
- leasing of buildings or parts of buildings that are not set up as residential buildings.
What are the differences between renting and leasing a Spanish vehicle?
Businessmen can also enter a business activity related to the rental and leasing of vehicles, which is a common activity in this industry. Although leasing and renting may seem similar, there are very important differences between the two activities, including the rights granted to the persons or companies that rent or lease vehicles here.
When renting a car in Spain, it is necessary to know that the rental company is the owner of the vehicle and will remain so. The entity that will rent a vehicle in this country is not legally required to pay, besides the established rent, any other associated costs, such as insurance, taxes or maintenance costs.
When the rental agreement will reach its deadline, the parties are allowed to renew the contract. Our team of consultants in company formation in Spain can advise businessmen on the regulations prescribed for a rental agreement and may provide consultancy services regarding the taxes that are to be paid by the rental company.
In the case of a leasing contract signed for the usage of vehicles in Spain, the person leasing the car benefits from more rights than in the case of a rental agreement. One of the advantages is that the lease can provide the right to purchase the vehicle in a given period of time.
A leasing agreement is usually signed for a period of two years and at the end of the contract, the person can easily return the car, without any other obligations, renew the agreement or decide to purchase the vehicle. However, in this case, the client, and not the leasing company, is the one who has to pay for any additional costs (insurance and others).
As a general rule, this type of contract is signed with the assistance of a local banking institution and investors are invited to contact our team of representatives in company registration in Spain for further information on the tax requirements for leasing and rental companies; investors can request any additional advice regarding this subject.