Commercial Lease Agreements

Commercial leases: how they differ from residential ones

A lease for non-residential purposes — a shop, office, warehouse, restaurant or clinic — gives the parties far more freedom than a residential lease. Duration, renewal, termination and works can be negotiated freely; the default rules of the Civil Code and the NRAU only apply where the contract is silent. That makes a well-drafted contract even more important.

Clauses to negotiate carefully

• Permitted use of the premises, and whether the habitation/use licence allows it.
• Term, renewal and termination, including each party's notice period.
• Rent, annual update and a rent-free period for fit-out works.
• Works: who carries them out, who pays, and what stays in the property at the end.
• Transfer of the business (trespasse) and assignment of the lease, if the business may be sold together with the premises.
• Guarantees: deposit, guarantor or bank guarantee.

After signing

As with residential leases, the contract must be in writing and registered with the Tax Authority by the landlord, who issues electronic rent receipts (with withholding tax when the tenant is a company with organised accounts).

The templates in this category are editable Word files in Portuguese, reviewed by lawyers. For high-value leases or major works, ask a lawyer for a personalised review.