{"id":15384,"date":"2026-10-29T12:16:03","date_gmt":"2026-10-29T11:16:03","guid":{"rendered":"https:\/\/www.gentile.law\/?p=15384"},"modified":"2026-10-29T12:16:06","modified_gmt":"2026-10-29T11:16:06","slug":"sale-leaseback-in-spain-an-opportunity-for-foreign-investors","status":"publish","type":"post","link":"https:\/\/www.gentile.law\/en\/sale-leaseback-in-spain-an-opportunity-for-foreign-investors\/","title":{"rendered":"Sale & Leaseback in Spain: an opportunity for foreign investors"},"content":{"rendered":"\n\n\n

Published: <\/strong>29-10-2023<\/p>\n\n\n\n

In a tighter bank financing environment, a growing number of companies that own their real estate are turning to sale & leaseback transactions: they sell the asset to an investor and remain in occupation as tenants. This structure allows them to convert real estate holdings into liquidity without disrupting their business, and it has become well established in Spain for both large portfolios and mid-sized transactions.<\/p>\n\n\n\n

By sector, supermarket chains were the pioneers in Spain, selling their store portfolios to international investors to fund their growth. The picture is completed by the hotel sector, which is heading for a record year of investment in 2026, and by corporate headquarters and offices.<\/p>\n\n\n\n

How the transaction is structured<\/strong><\/h2>\n\n\n\n

The transaction is carried out through two agreements signed simultaneously. Under the sale and purchase agreement, the investor acquires the property at market value. In the same act, and under the lease agreement, the investor leases it back to the seller on a long-term basis, usually under a triple net structure, whereby the tenant bears taxes, insurance and maintenance. As a lease for a use other than housing, it is governed by the will of the parties; failing that, by Title III of the Ley de Arrendamientos Urbanos <\/em>and, on a supplementary basis, by the Civil Code. This broad scope for negotiation is an advantage for the investor, provided that the agreement is drafted to protect its position throughout the entire term of the lease.<\/p>\n\n\n\n

What it offers foreign investors<\/strong><\/h2>\n\n\n\n

The main attraction is a stable and predictable rental income. The asset is acquired already leased to the seller itself, which knows the property, chose it for its business and has a genuine interest in continuing to occupy it. Unlike the purchase of an unoccupied property, there is no letting period and no initial vacancy risk: price and rent are negotiated together, so the return is known from day one.<\/p>\n\n\n\n

In addition, leases typically run for between 10 and 30 years, with rent indexed annually in line with the agreed index. Finally, the triple net structure shifts the day-to-day management of the property to the tenant, which is particularly valuable for investors who do not reside in Spain and do not wish to handle the daily administration of the asset.<\/p>\n\n\n\n

Key terms of the lease agreement<\/strong><\/h2>\n\n\n\n