Lease of real estate
Lease of immovable property: legislation, obligations and conditions
The lease of real estate is subject to specific terms and conditions that protect both the lessor and the lessee. Here are the basic rules and obligations governing the lease of real estate:
Duration of the lease
- Minimum Term: by law, the minimum lease term is 3 years, even if the lease states a shorter or longer term.
- Extension of the Agreement: If both parties wish, an extension of the lease for more than three years can be agreed if both parties wish.
Stamps and Taxation
- Commercial Leases: Commercial leases are subject to a paper tax of 3.6%, which is usually paid by the lessee.
Use of Lease
- Definition of Use: The lease must clearly state the use of the lease, as the use cannot be changed without the express permission of the landlord. The lease does not cover activities not described in the contract.
Registration of the Contract in TAXISnet
- Mandatory Registration: The lessor must register the lease contract in the TAXISnet system within 30 days of signing it.
- Acceptance by Tenant: The lessee is obliged to accept the registration in the system, otherwise a fine for delay may be imposed.
Guarantee
- Security Deposit: it is common to pay a deposit of one to two months’ rent at the start of the lease as security for the landlord.
Annual Increase
- Rent Increase: the annual rent increase is usually determined by inflation plus 1% – 2% and should not exceed 5%.
Right to Sublease
- Subleasing of Space: If the tenant wishes to sublease the space to a third party, a right to do so must be provided for in the lease agreement.
Clearly recording all terms in the lease and following the legal procedures ensures transparency and prevents legal issues for the landlord and tenant.
