Renting commercial premises in France: key points to consider

Whether you plan to open a shop, office, or workshop in France, renting commercial premises (“local commercial”) requires thorough preparation. French lease agreements differ in several important ways from those in Belgium or the Netherlands. Below we highlight the main points to consider if you're thinking about renting a commercial property in France.

1. Choose the right type of lease agreement

In France, various types of leases exist for commercial activities:

• Bail commercial: the most common lease, with a standard duration of 9 years and a renewal right for the tenant.
• Bail dérogatoire: a short-term lease (maximum 3 years), often used for pop-up stores or temporary projects.
• Bail professionnel: intended for liberal professions such as lawyers, doctors, and consultants.

Most business owners choose a bail commercial. While it offers protection, it also comes with specific obligations.

2. Understand the duration and termination options

A bail commercial typically lasts 9 years, but the tenant is generally allowed to terminate it every 3 years (résiliation triennale). This must be done by registered letter or bailiff’s notice at least 6 months before the desired end date.

Note: Some contracts include clauses that limit the right to terminate early, particularly in the case of new buildings or specially fitted-out premises.

3. Pay attention to rent and annual indexation

The rent is freely negotiated between the parties, but annual indexation usually follows:

• the ILC index (Indice des Loyers Commerciaux) for retail and commercial use, or
• the ILAT index (Indice des Loyers des Activités Tertiaires) for office or other non-retail activities.

Make sure you fully understand which index applies and when revisions take place.

4. Additional costs: charges and repairs

In France, additional costs (such as taxes, common charges, and insurance) are often largely passed on to the tenant. However, since 2014, landlords are required by law to provide a detailed statement of charges (décret Pinel).

Repairs are another important point: minor maintenance is usually the tenant’s responsibility, but structural repairs remain the legal responsibility of the landlord.

5. Permitted use of the premises: proceed with caution

A commercial lease agreement precisely defines how the premises may be used. If you wish to change or expand your business activities later on, you will often need the landlord’s consent (changement d’activité or déspécialisation partielle/totale).

Also check whether the intended use complies with the local urban planning regulations (PLU – Plan Local d’Urbanisme).

6. Lease premium (“pas-de-porte”) or goodwill

In some cases, the landlord may ask for an additional payment at the start of the lease, known as a pas-de-porte. This may be a form of compensation for the property’s location or existing customer traffic. Sometimes, an existing business (including its clientele) is taken over through the purchase of a fonds de commerce.

Be sure to seek proper advice in such transactions so you know exactly what you are paying for.

7. Formalities and registration

While a bail commercial does not have to be notarized, a written agreement is essential. In certain cases (e.g., leases of more than 12 years), the contract must be registered with the land registry and tax authorities (enregistrement au service de publicité foncière).

In addition, the tenant is usually required to take out insurance covering risks such as fire, water damage, and public liability.

Conclusion

Renting commercial premises in France offers many opportunities but requires a solid understanding of French regulations and practices. A thorough review of the lease agreement, accurate estimation of additional costs, and tailored legal advice are essential to avoid unpleasant surprises.

At RFN, we are happy to support you every step of the way—from negotiation to signing your French lease agreement.