GIPE Newsletter (Nº24.176) July, 22nd 2025

LEASES:

IF THE TENANT RETIRES, THE CONTRACT ENDS

If the tenant of a commercial premises is a natural person and has an old contract with a mandatory extension (prior to 1985 or expressly agreed upon thereafter), the contract ends upon the tenant’s retirement or death.

However, if the tenant’s spouse continues the same business activity and is not retired, they can be subrogated to the contract until their own retirement or death.

If the tenant retires and there is no spouse to continue the business, the landlord can terminate the contract and repossess the premises. If the tenant wishes to continue operating the business after retirement (for example, through employees), they must negotiate a new contract at market price.

On the other hand, if the tenant reaches retirement age but chooses not to retire, the contract remains in effect. Furthermore, if the tenant opts for active retirement (collects part of their pension and continues working), the courts consider that the contract does not expire either.

To confirm whether the tenant is truly retired, the landlord may ask for a certificate of employment.

THE TENANT LEAVES THE FURNITURE

If a tenant does not want to remove the furniture or appliances they have placed in the home, and the landlord is interested in keeping them, they can agree on a price and deduct it from the outstanding rent. To do this, it is recommended to take an inventory and estimate the value of the items, considering a 20% annual depreciation over a five-year useful life.

Furthermore, this sale between individuals is subject to Property Transfer Tax, which must be paid by the buyer, normally at a rate of 4% (although this may vary by autonomous community).

GIPE: Together we will be stronger