Selling Commercial Premises, an Office or a Garage in Madrid in 2026: Prices, Taxes and Paperwork

Selling commercial premises in Madrid, an office or a parking space only looks like selling a flat on the surface. The taxes change, as do the type of buyer, the way the price is calculated and much of the paperwork. And if the premises are let, or if the buyer plans to convert them into a home, rules come into play that many owners discover too late, sometimes on the signing day itself.

In this guide we go through, using 2025 and 2026 data, how much is paid for commercial premises, offices, garages and storage rooms in Madrid; which taxes come into play (ITP, VAT and AJD) and when; what rights the tenant of commercial premises has; what current municipal rules say about changing the use of premises to residential; and which documents you should have ready. If what you're selling is a home, our guide “How to sell a flat in Madrid in 2026” will be more useful to you.

The market for commercial premises, offices and garages in Madrid in figures

The most reliable reference for what these properties really sell for are the prices recorded at the Registro de la Propiedad (Land Registry), not the asking prices in listings. According to the 2025 Yearbook of Registry Property Statistics from the Colegio de Registradores (Association of Registrars), the average price of commercial premises sold in the Comunidad de Madrid was €2,531/m², almost double the Spanish average (€1,294/m²). For garages, the Madrid average was €1,195/m² and for storage rooms, €1,636/m².

The same yearbook shows that the market for commercial premises is active: 850,100 m² of premises changed hands in the Comunidad de Madrid in 2025. For comparison, registered homes in the region sold for an average of €4,091/m², a 16% rise in one year, and in the city of Madrid for €5,283/m².

For buyers thinking of letting, yield is what matters. idealista calculates the average gross yield (annual rent divided by sale price) every quarter. In the second quarter of 2026, offices yielded an average of 10.9% in Spain, commercial premises 9.9% and garages 6.7%, compared with 6.5% for homes; in the city of Madrid, homes stood at 4.7%. These are national averages based on listings: on Madrid's busiest shopping streets the yield is usually considerably lower, because the purchase price is much higher.

For offices, the report by asset manager MVGM reported by Europa Press puts the average sale price in central Madrid at €4,526/m² in 2025, 15% more than a year earlier. Rental demand remains active: according to Cushman & Wakefield, 190,000 m² of office space was leased in Madrid in the first half of 2026, with availability stable at between 8% and 9% and a top rent of €44/m² per month in the best areas.

Garages have also become more expensive. According to Fotocasa, the average price of a parking space for sale in Spain rose by 1.7% in 2025, to €14,011, and in the Comunidad de Madrid the increase was 6.2%. In the capital, the Centro district has the highest prices, at an average of €28,674 per space, and the biggest increases were in Villaverde (18.2%), Usera (17.4%) and Puente de Vallecas (16.7%). The gross yield on a garage in the Comunidad de Madrid was 7.1% in 2025, also according to Fotocasa.

Source: Colegio de Registradores (ERI Yearbook 2025), MVGM via Europa Press (February 2026), Fotocasa (February and March 2026) and idealista (July 2026).

For commercial premises, the average tells you little: two 80 m² premises in the same neighbourhood can differ in value by a factor of two depending on their frontage, visibility, ceiling height, smoke extraction or the tenant they have. Further on we explain how to set the price case by case.

What's different from selling a home

The basic process is the same (value, advertise, negotiate, sign the arras deposit contract and execute the deed), but there are differences that affect the price and timescales.

• The buyer is different. It's usually an investor looking for rental income, a business that wants to stop paying rent, a neighbour who wants a garage or storage room, or someone who wants to convert the premises into a home.
• The price depends more on the rent than on the square metre. Let premises are valued mainly on what they produce and how solid the tenancy is.
• The tax treatment may be different. For second-hand homes there's almost always ITP; for commercial premises or an office, depending on who sells and who buys, there may be VAT.
• The planning use matters. What can be done in the premises (what activity, whether they can be converted into a home) changes their value considerably.
• The tenant of commercial premises has their own rights, set out in the Ley de Arrendamientos Urbanos (Urban Leases Act) for non-residential use.

Taxes when selling commercial premises: ITP, VAT and AJD depending on who sells and who buys

The purchase taxes are paid by the buyer, but it's in the seller's interest to understand them: they influence what they will be offered and how the deed is drafted.

If the property is second-hand, the purchase is normally subject to the Impuesto sobre Transmisiones Patrimoniales (ITP, transfer tax). In the Comunidad de Madrid the standard rate is 6%, according to article 28 of the consolidated text on ceded taxes (Legislative Decree 1/2010). That rate applies equally to commercial premises, offices, industrial units, garages and storage rooms. The ITP reductions available in Madrid are designed for homes, so they don't apply to these properties.

On the transfer of real estate […] a rate of 6 per cent shall apply.

Article 28 of Comunidad de Madrid Legislative Decree 1/2010

VAT comes into play in two cases. The first is when the seller is the developer and it's the first delivery of new commercial premises, an office or a garage: then 21% VAT is paid, plus Actos Jurídicos Documentados (AJD, stamp duty) on the deed, which in Madrid is generally 0.75% (article 36 of the same text). The second case is waiving the exemption, which we explain next.

The VAT Act (article 20.One.22) exempts “second and subsequent deliveries of buildings”. In other words, when a business sells premises that have already been used, the transaction is exempt from VAT and pays ITP. But article 20.Two allows that exemption to be waived if the buyer is a business or professional entitled to deduct, wholly or partly, the VAT they incur. In that case the purchase carries VAT, which the buyer declares themselves under the reverse charge mechanism (article 84.One.2.e of the VAT Act), and the deed pays AJD at 1.5% in Madrid (article 35 of the consolidated text).

Why is the waiver worthwhile? Because a business buyer can deduct that VAT, whereas the 6% ITP is a cost they don't recover. There's a detail many private individuals don't know: anyone who lets commercial premises or an office is a business for VAT purposes, because rent on commercial premises carries VAT. So the sale of let premises by a private individual can fall under this regime. The waiver has formal requirements (formal notice to the buyer and a declaration by the buyer of their right to deduct) that should be settled before signing.

Source: VAT Act 37/1992 (arts. 20 and 84) and Comunidad de Madrid Legislative Decree 1/2010 (arts. 28, 35 and 36). Simplified outline: the sale of an entire going concern or of properties under renovation has its own rules.

The base on which ITP is calculated isn't necessarily the price in the deed. Since 2022, for many urban properties the base is the higher of the declared price and the reference value published by the Catastro (land cadastre). If you sell below that value, the buyer will pay tax on the reference value, and this usually comes up in negotiations, so it's worth checking it beforehand on the Sede Electrónica del Catastro (the Catastro's online portal).

What the seller pays: plusvalía municipal, IRPF and costs

When selling commercial premises, an office or a garage, the seller mainly pays two taxes. The first is the plusvalía municipal (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana, municipal capital gains tax on urban land), which taxes the increase in value of the land and applies in the same way as for a home. Since the 2021 reform you can choose the more favourable calculation between the objective method and the actual gain, and if there's no gain, nothing is payable.

The second is IRPF (income tax), if you sell as an individual. The difference between the sale price and the purchase price (adding the costs and taxes of both transactions and deducting depreciation if you had it let) is a capital gain taxed in the savings base, at rates of 19% to 30% depending on the amount. There's no exemption here for reinvesting or for being over 65, because those advantages are only for the habitual home. If the premises belong to a company, the sale is taxed under Corporation Tax.

• Plusvalía municipal, settled with the City Council after the sale.
• IRPF on the gain, in the tax return for the following year.
• Notary: by law, the original deed is for the seller and the first copy for the buyer, unless otherwise agreed.
• Cancelling the mortgage, if there is one, and registering the cancellation at the Land Registry.
• Energy performance certificate, for commercial premises and offices.
• The year's IBI (property tax) and outstanding community fees, which should be brought up to date and clearly divided in the contract.
• The intermediary's fees, if there is one.

Selling commercial premises with a tenant: what the Urban Leases Act says

Many commercial premises and offices are sold with a tenant in place, and in that case the tenant is part of the value. The Ley de Arrendamientos Urbanos (LAU, Urban Leases Act) regulates these contracts as leases for non-residential use. Under its article 4.3, they are governed first by what the parties have agreed and, where nothing has been agreed, by Title III of the Act. So the first thing to do is read the contract carefully.

Selling doesn't break the contract. Article 29 of the LAU establishes that the buyer takes over the landlord's rights and obligations, except where a third party is protected by the Land Registry (article 34 of the Ley Hipotecaria, the Mortgage Act). In practice, the buyer inherits the contract with its rent, duration and deposit.

In addition, article 31 of the LAU extends to commercial premises article 25, which gives the tenant a derecho de tanteo (right of first refusal: to buy in preference, on the same terms, within 30 calendar days of being formally notified of the sale) and a derecho de retracto (right of pre-emption: to undo a sale made to someone else if they weren't notified or it was sold on different terms). As what's agreed takes precedence for commercial premises, it's common for the contract to include a waiver of these rights. If it doesn't, the tenant must be notified before selling, and the notary will ask for proof.

1. Review the contract: duration, extensions, rent updates, guarantees, authorised works and whether there's a waiver of the rights of first refusal and pre-emption.
2. Gather the proof: paid receipts, the deposit lodged with the Comunidad de Madrid and any bank guarantee or additional security.
3. If there's no waiver, send the tenant a formal notification (for example, a burofax, a certified letter) with the price and essential terms, and wait the 30 calendar days.
4. If the tenant doesn't buy, sell on exactly the terms notified. If they change, it's wise to notify again.
5. In the deed, record the current contract, the handover of the deposit to the buyer and the notifications made.

A stable tenant who pays on time and has years left on the contract usually makes the premises more attractive to an investor. Unpaid rent, a rent well below market or a contract about to expire reduce the value, so it's best to explain this from the outset.

Activity licences and the planning use of the premises

A common question is whether the activity licence “goes with the premises”. The licence or declaración responsable (self-declaration) covers a specific activity in that space and in the name of a holder. If the buyer will carry on the same activity, it's normally enough to notify the City Council of the change of holder. If they want to open a different one, they'll have to apply for a new permit under the Ayuntamiento de Madrid's Ordenanza de Licencias y Declaraciones Responsables Urbanísticas (bylaw on planning licences and self-declarations). Having the permitted uses and the condition of the installations documented gives the buyer confidence and avoids last-minute price cuts.

• Previous licences or declaraciones responsables, with the activity they covered.
• Use permitted by the Plan General (city master plan) at that location, which can be obtained through a planning enquiry to the City Council.
• Smoke outlet, extraction and maximum occupancy, if the premises have been used for hospitality.
• Electrical installation certificate and, if applicable, air-conditioning and fire protection inspections.
• Up-to-date building inspection (ITE or IEE), which affects the whole community of owners.

Changing the use of commercial premises to residential in Madrid: what the rules allow in 2026

Converting commercial premises into homes has been one of the most common solutions for empty ground-floor shops. The Ayuntamiento de Madrid (Madrid City Council) quantified this when presenting the Plan Reside, the amendment to the Plan General to protect residential use, whose final approval was published in the Boletín Oficial de la Comunidad de Madrid (Madrid regional gazette) on 22 September 2025.

From 2015 to 2024, 3,306 commercial premises were converted into homes and/or tourist flats in Madrid.

Ayuntamiento de Madrid, press release of 27 August 2025

The Plan Reside doesn't ban converting commercial premises into homes throughout the city, but it does rule it out in specific areas to protect local shops. It also prevents premises being converted into tourist flats in the historic centre.

Source: Ayuntamiento de Madrid (press release and Plan Reside presentation document) and KPMG legal alert (September 2025). For specific premises, check the plan and the zoning rule that applies.

Outside those areas, a change of use is still possible, but not automatic. The future home must meet the Plan General's habitability conditions (ventilation, lighting, floor area and being an exterior-facing home, among others), the planning permit must be obtained from the City Council and it's wise to check the community of owners' bylaws, which sometimes restrict the use of commercial premises. Premises are only truly “suitable for a home” once a technician has checked them.

The Comunidad de Madrid has also taken action. Law 2/2026 of 11 June, on urgent measures to increase the supply of publicly protected housing, allows some plots used for offices, hotels or private facilities to change to residential use without amending the planning rules, provided they are used for subsidised rental housing. It mainly affects entire buildings and plots, not an individual office. In addition, the new regional Land Act (LIDER) was approved as a bill by the regional Consejo de Gobierno (Governing Council) in July 2026 and is pending in the Asamblea (regional parliament), and the Agencia de Vivienda Social (Social Housing Agency) will convert 72 of its own commercial premises into subsidised homes between 2026 and 2027.

For sellers, the conclusion is clear: if a change of use is permitted and viable, it's a selling point, but it must be backed up with a technical report or a planning enquiry. If the premises are on a protected commercial axis, the price should reflect their value as commercial premises.

Selling a parking space or storage room in Madrid

A second-hand parking space or storage room is taxed in the same way as commercial premises: the buyer pays 6% ITP in the Comunidad de Madrid, and the seller pays the plusvalía municipal and IRPF on the gain. If the space is new and sold by the developer, it carries 21% VAT, or 10% if delivered together with the home (up to a maximum of two spaces, according to article 91 of the VAT Act).

Before advertising it, check how it's registered. Some spaces are independent properties and others are an undivided share of the whole garage with the use of a specific space. In the second case, the deed must clearly identify the number and location of the space. There are also spaces and storage rooms linked to a home, which is common in subsidised housing, that cannot be sold separately while that link lasts. The nota simple (land registry extract) will tell you.

Do you have to offer it to the neighbours first? The Ley de Propiedad Horizontal (Horizontal Property Act) doesn't give neighbours a general preferential right to buy, but the community's bylaws can restrict sales to owners in the building, and in some garages held in proindiviso (joint undivided ownership) it's debated whether the co-owners' right of redemption under the Civil Code applies. In practice, neighbours are often the best buyers, because the space saves them parking on the street. Putting a notice up in the entrance or telling the property manager usually works.

• Up-to-date nota simple, with the space or storage room number and whether it's linked to a home.
• Community bylaws and rules on the use and sale of spaces.
• Certificate of debts with the community and the latest IBI bill.
• Remote controls, keys and access cards, handed over on the signing day.
• Actual measurements of the space (length, width, columns), which buyers always ask about.

Selling an office in Madrid

The office market runs at two speeds. Large, high-quality spaces are in demand from companies, with rising rents (a maximum of about €44/m² per month in the first half of 2026, according to Cushman & Wakefield). Small or older offices, often in buildings with homes, appeal to professionals who want to stop renting, small investors or buyers considering a change of use. In both cases, floor plans, the energy certificate and visible community fees help.

Paperwork for selling commercial premises, an office or a garage

Source: Horizontal Property Act, Urban Leases Act, VAT Act and energy efficiency regulations. The notary may request additional documents depending on the case.

How to set the price of commercial premises, an office or a garage

Pricing commercial premises is harder than pricing a flat, because there are fewer comparable sales and each property is very different. The sensible approach is to combine several methods and settle on a range, not a single figure.

1. Compare with actual sales, not just listings. Registered prices (such as those in the Registrars' Yearbook) and what the notary or valuer tells you about completed sales carry more weight than asking prices on property portals.
2. Calculate the value based on rent. If the premises are let, divide the annual rent by the yield an investor would expect in that area. Premises let at €1,500 a month produce €18,000 a year: at a 6% yield they would be worth about €300,000; at 7%, about €257,000.
3. Adjust for the features that matter most: metres of frontage, corner position, ceiling height, smoke extraction, floor (street level, basement or mezzanine), condition of the installations and current licence.
4. Check the Catastro reference value, because it affects the buyer's ITP and usually comes up in negotiations.
5. Consider an official valuation if the buyer will need financing or if there's a lot of uncertainty: it's an external figure that gives the price credibility.

Practices to avoid when selling

Some problems come up again and again and have nothing to do with the property, but with how the sale is managed. They aren't the norm across the industry, but when they occur they're costly.

• Unclear commissions: ask in writing for the percentage, whether it includes VAT, when it's paid and whether the intermediary also charges the buyer.
• Costs that appear at the end: photos, advertising, paperwork or reports that weren't in the initial quote.
• Unverified buyers: offers that collapse because the buyer didn't have the financing or funds they claimed.
• Rushing to sign the arras without reviewing the tenancy agreement, the tenant's waivers or the tax position of the sale.
• Unsupported promises, such as advertising premises as “suitable for a home” without a technical report or planning enquiry.

How we do it at Llavely

With Llavely you can sell not only homes but also commercial premises, offices, garages, storage rooms, industrial units and land in the Comunidad de Madrid. Before showing the property we check the owner's identity and ownership, talk to each buyer to find out what they're looking for and how they would pay, and check their ID before the viewing, which we carry out ourselves.

With “Venta Llavely” (our Llavely Sale service) you pay 2.5% + VAT of the price only if you sell, on the day of the notary signing, all inclusive and done by us: valuation, photos, video, floor plan and virtual tour, screened buyers and viewings, offers and arras, anti-money-laundering checks, coordination with the notary, your private seller portal and specialised lawyers from start to finish (charges and nota simple, drafting the arras, preparing the deed, calculating plusvalía and IRPF and accompanying you in person to the notary on signing day).

No extra payments or hidden costs for anyone: what you see is what you get. And in sales like those in this article, with tenants, VAT waivers or planning questions, having our team and our lawyers review the paperwork before signing is precisely the most useful part.

Frequently asked questions

Sources

1. Anuario de la Estadística Registral Inmobiliaria 2025 (Yearbook of Registry Property Statistics) (Colegio de Registradores, Association of Registrars, 2026)
2. Housing yield falls to 6.5% in the second quarter (idealista, 6 July 2026)
3. Yield on commercial premises: archive of quarterly reports (idealista, 2026)
4. Madrid offices rise 15% year on year and exceed €4,500 per square metre in the centre, according to MVGM (Europa Press in Bolsamanía, 26 February 2026)
5. Madrid and Barcelona office market in the first half of 2026 (Cushman & Wakefield, 3 August 2026)
6. Garage prices in 2025 according to Fotocasa (Nuevecuatrouno, 22 February 2026)
7. Garage yields in Spain fall almost three points in five years, to 6.4%, according to Fotocasa (Europa Press in Bolsamanía, 9 March 2026)
8. Decreto Legislativo 1/2010, consolidated text on taxes ceded to the Comunidad de Madrid (Ministerio de Hacienda, Ministry of Finance)
9. Ley 37/1992, del Impuesto sobre el Valor Añadido (VAT Act) (BOE, Official State Gazette)
10. Ley 29/1994, de Arrendamientos Urbanos (Urban Leases Act), consolidated text (BOE)
11. The Plan Reside comes into force: no more tourist flats in residential buildings (Ayuntamiento de Madrid, 27 August 2025)
12. Plan Reside: presentation of the amendment to the Plan General for the protection of residential use (Ayuntamiento de Madrid, September 2025)
13. Legal alert: Plan Reside and amendment of the Madrid Land Act (KPMG, September 2025)
14. Ley 2/2026, de 11 de junio, on urgent measures to increase the supply of publicly protected housing (Comunidad de Madrid, BOE)
15. The Comunidad approves the bill for its new land act (Última Hora, 22 July 2026)
16. The Ayuso government will invest €7 million to convert 72 commercial premises into subsidised homes (Infobae, 27 October 2025)