Investment approach
A commercial unit instead of a flat: how tax, leases and checks differ
Commercial premises live by different rules from a flat: a different IVA, a different lease, a licence instead of a cédula. A point-by-point comparison and a worked calculation of the purchase tax.
A local comercial (commercial unit) is a property that under the cadastre and the urban plan is intended for business activity and not for housing, and so it is bought, taxed and let under different rules. A new local from a developer is subject to IVA (VAT) at the general rate of 21% (art. 90 Ley del IVA), whereas a new flat is at 10%. The lease of a local is governed above all by the contract between the parties, not by the protective rules for housing (art. 4.3 LAU, the Urban Leases Act).
How a local differs from a flat in law
The difference starts with the property's designated use and continues through tax, financing and leasing. A comparison on the main points:
| Feature | Flat | Commercial unit |
|---|---|---|
| Designated use | Residential | Retail, office or other under the plan |
| Document for use | Cédula de habitabilidad (certificate of habitability) | Licence or notification of activity depending on the type of business |
| IVA when buying new from a developer | 10% | 21% |
| ITP from a private seller in Catalonia | Scale of 10–13% | The same scale, which also applies to non-residential property |
| Lease | LAU protective rules for housing, zonas tensionadas (stressed market zones) | Above all the contract between the parties, title III of the LAU as a fallback |
| Mortgage | Banks' residential mortgage products | The bank sets the terms separately |
The reduced IVA rate of 10% extends to buildings and parts of buildings fit for housing, with garages of up to two spaces and annexes; retail premises are not treated as annexes to a home even when sold together with the flat (art. 91 Ley del IVA). The Catalan ITP scale since 27 June 2025, according to the ATC, also applies to non-residential property (ATC).
What the purchase taxes come to: a worked calculation
Worked example, not a forecast. A property priced at 300,000 €, four scenarios. In Catalonia, a first transfer with IVA also attracts AJD (stamp duty) of 1.5% (ATC, guia ITP).
| Scenario | Tax | Amount |
|---|---|---|
| New flat from a developer | IVA 10% and AJD 1.5% | 30,000 € + 4,500 € = 34,500 € |
| New local from a developer | IVA 21% and AJD 1.5% | 63,000 € + 4,500 € = 67,500 € |
| Flat from a private seller | ITP 10% | 30,000 € |
| Local from a private seller | ITP 10% | 30,000 € |
For a buyer who is a businessperson and will use the local in an activity subject to IVA, the tax may become deductible, and then the comparison changes. If the seller is a company, in some cases the parties may waive the exemption and apply IVA instead of ITP; AJD in Catalonia is then 3.5%. The structure of a specific deal is worked out by an asesor fiscal (tax adviser) before a price is offered.
How leasing commercial premises differs
The parties regulate a local lease themselves: term, indexation, repairs and exit conditions are written into the contract, and the rules of title III of the LAU apply only if the contract is silent. For the owner this is flexibility; for the tenant, the chance to agree a long term and rent-free periods.
Income from a local depends on the tenant more than income from a flat does: a change of tenant means months without rent and the cost of adapting the premises. How a tenant determines an acceptable rent and what an owner should do about it is covered in the article on strategy with a commercial tenant, and the checking of properties on shopping streets in the piece on a high-street unit.
What to check in the premises before making an offer
The order of checking a local differs from checking a flat in its emphasis:
- Designated use. Whether the uso (use) in the cadastre matches how the premises are or will be used.
- Permitted activity. Whether the district's use plan allows the type of business needed. In Ciutat Vella the Ajuntament gave final approval to a new use plan on 29 May 2026 (Ara), and such plans restrict new licences.
- Licence. Whether there is a valid licence or notification of activity and whether it passes to the new owner or tenant.
- Safety and accessibility. Fire requirements and the Codi d'accessibilitat (Catalan accessibility code) on a change of activity (Decret 209/2023).
- Community. The local's cuota de participación (ownership share) in the costs, who is responsible for the shop window, entrance and facade, and whether there are debts and approved derramas (special levies). The answer is in the estatutos (the community's statutes) and the minutes of meetings.
When buying a local instead of a flat is not the right fit
The purchase does not suit someone who plans to turn the premises into a home "later". A change of use depends on the urban plan for the building and the district and requires permission from the Ajuntament; it cannot be relied on before the opinion of an architect and an abogado (lawyer), more in the article on change of use.
Nor does it suit an investor who needs a stable income without involvement: gaps between tenants and rent negotiations take time and experience. How DNPI looks at commercial property in its projects is described on the commercial strategy page, and a calculation for a specific unit can be ordered as part of an investment analysis.
Questions and answers
What tax is paid when buying commercial premises in Spain?
From a developer, IVA of 21% under art. 90 Ley del IVA and, in Catalonia, AJD of 1.5% on top. From a private seller, ITP on the Catalan scale from 10%, which also applies to non-residential property.
Can a local be converted into a flat in Barcelona?
Sometimes, if the urban plan for the building and the district allows it and the Ajuntament grants permission. Buying a local counting on a change of use without the opinion of an architect and an abogado is risky.
Is a cédula de habitabilidad needed for commercial premises?
No, the cédula applies to housing. To operate in a local you need a licence or notification of activity; the requirements depend on the type of business and the municipality.
Do the restrictions for housing apply to a local lease?
No. Under art. 4.3 LAU, a lease for a use other than housing is governed above all by the contract between the parties, and title III of the LAU applies as a fallback.
Will a bank give a mortgage on commercial premises?
Yes, but banks set the terms separately from a residential mortgage, depending on the property and the buyer's profile. They are checked with the bank or a broker before a price is offered.
