If you are thinking about starting or expanding a business, you may come across terms like transfer of a commercial space and transfer of a business. At first glance, they may seem the same, but there are important differences that can affect your rights, responsibilities, and the feasibility of your project.

In this guide, we explain the difference between transferring a commercial space and transferring a business, as well as the difference between transferring and renting a business, so you can make the best decision based on your needs.

What is a transfer of a commercial space and what does it involve?

The transfer of a commercial space refers to the transfer of the right to use a commercial property within a lease contract. This means that if a tenant has a business in a rented space and decides to transfer that right to another person, the new tenant will take over the lease contract.

In this case, the transfer usually includes:

• The right to continue using the space under the same lease conditions.
• Possible improvements or adaptations made to the premises.
• Furniture and equipment, if agreed upon in the contract.

However, this does not always mean that the business operating in that space is also transferred, which leads us to the next point.

What does transferring a business mean?

The transfer of a business includes not only the premises but also the ongoing commercial activity. This means that the buyer acquires not just the physical space but all the elements necessary to continue operating the business.

Key elements in a business transfer

When discussing a business transfer, the following are typically included:

• Customer base and business reputation.
• Furniture, equipment, and product inventory.
• Licenses and permits (as long as they are transferable).
• Hired staff (in some cases, employees remain with the new owner).
• Suppliers and existing commercial agreements.

In short, the transfer of a business is more comprehensive, as the buyer acquires not only the location but also a fully operational business.

Rights and obligations in a business transfer

The new business owner takes on certain commitments, such as:

• Adhering to the terms of the lease contract if the transfer includes the commercial space.
• Maintaining existing employment contracts (if the business has employees).
• Taking responsibility for agreements with suppliers and customers.
• In some cases, it is also necessary to negotiate with the landlord, as not all lease contracts allow transfers without the landlord's consent.

Difference between transfer and rental of a business

Many people confuse transfer with rental, but they are two very different concepts.

Renting a business: Basic aspects you should know

Renting a commercial space means simply paying a periodic rent to use the space. In this case, the property owner remains the owner of the premises, and the tenant only has the right to operate within it for the duration of the contract.

In a rental:

• No furniture or business assets are transferred.
• Rights over customers, employees, or brand are not acquired.
• The tenant must negotiate directly with the landlord for any modifications or transfer of the lease.

Main legal differences between transfer and rental

In summary, a business transfer is a more complete transaction, while rental only grants the right to use a commercial space.

Advantages and disadvantages of transferring commercial spaces and businesses

Benefits of acquiring a transferred space

• Lower initial investment compared to starting a business from scratch.
• Already operational business, reducing the time needed to recover the investment.
• Existing customer base, making it easier to generate revenue from day one.
• Proven location suitable for the commercial activity.

Risks to consider before accepting a transfer

• There may be hidden debts or legal issues within the business.
• The lease contract may have unfavorable conditions.
• The business may require costly renovations or changes.
• Difficulties in renegotiating the lease with the property owner.

Before accepting a transfer, it is advisable to conduct a financial and legal analysis to avoid surprises.

How to decide if a commercial space or business transfer is right for you

It depends on your objectives:

• If you only need a space for your own business, a commercial space transfer or rental may be sufficient.
• If you prefer to continue an already established activity, a business transfer is a better option.
• If you have your own business idea and do not want to depend on the reputation of a previous business, renting a space and starting from scratch might be best.

Essential steps to formalize a transfer correctly

1. Review the lease contract to determine if the transfer is allowed.
2. Negotiate with the current tenant the financial conditions and what is included in the transfer.
3. Analyze the legal and financial situation of the business if it is a full transfer.
4. Sign a transfer contract detailing all agreed conditions.
5. Notify the property owner about the tenant change or negotiate if necessary.

Frequently asked questions about transferring commercial spaces and businesses

What are the costs associated with a transfer?

The cost of a transfer varies depending on location, business type, and included assets. It can range from a few thousand euros to significantly higher amounts in high-demand commercial areas. Besides the transfer price, consider:

• Taxes and administrative fees.
• Legal and notary expenses.
• Possible necessary renovations or improvements.

Is a lease contract the same as a transfer contract?

No. A lease contract only regulates the use of the premises, while a transfer contract involves the assignment of a business, including furniture, clientele, and commercial rights.

Conclusion

Understanding the difference between transferring a commercial space and transferring a business is key to making the right decision. If you only need the space, a lease or commercial space transfer may suffice. However, if you want an already operational business, a business transfer may be the best choice.

Before committing, carefully analyze contracts, costs, and business feasibility, and seek legal advice if necessary to avoid potential issues.