Sublease of ‘other business space’

Dutch tenancy law distinguishes between two types of commercial premises: commercial premises under Section 7:290 of the Dutch Civil Code (also referred to as small business premises) and commercial premises under Section 7:230a of the Dutch Civil Code (other commercial premises). This distinction is very important for both tenants and landlords, as the classification has different legal consequences. Incidentally, the classification question is answered on the basis of the actual use of the space and not by what is stated in the tenancy agreement.

7:290 BW commercial space

This category includes immovable property intended for, for example:

A crucial feature of 7:290 commercial premises is the presence of a premises accessible to the public for the direct supply of movable goods or services. These are businesses for which the location where they are established is important for the way in which they can reach customers.

7:230a BW commercial premises

This category covers all other immovable property that does not fall under the 7:290 scheme or residential premises. Examples include:

Relevant differences

Tenants of 7:290 commercial premises enjoy more protection than those of 7:230a commercial premises. In the case of small business premises, the tenant has term protection, rent protection and termination protection, while tenants of other commercial premises “only” have eviction protection.

Statutory lease terms apply to 7:290 premises, often in accordance with the 5+5 year rule. In principle, the lease agreement is entered into for five years and is then automatically extended by five years. For 7:230a spaces, the lease term is not subject to any formal requirements, which means that the parties are free to determine the duration of the lease agreement at their own discretion.

For 7:290 spaces, the termination options for landlords are limited to specific grounds specified in the law. These restrictions do not apply to 7:230a spaces, which offers the landlord more flexibility.

For 7:290 spaces, there are specific rules for rent review. These rules provide a framework for adjusting the rent during the term of the agreement. For 7:230a spaces, there are no such specific rules, which means that rent review is more dependent on what the parties agree between themselves.

For 7:230a spaces, tenants are entitled to eviction protection. After termination by the landlord, the obligation to vacate the rented property is suspended by operation of law for a period of two months. Within this period, the tenant can request the court to extend the eviction protection, with a maximum of three extensions of one year each.

How do I know which category my commercial space falls under?

The distinction between a small business commercial space and other commercial space is crucial. It is not about what is stated in the lease agreement, but about how the space is actually used. Do you have a shop, restaurant, café or hairdressing salon with a space where customers can walk in directly for products or services? Then you are probably in a different category than someone in an office, warehouse or studio without a customer-oriented function at the front. There is also a difference in legal protection.

How can tenants and landlords prevent legal problems?

Most legal rental problems arise not from unwillingness, but from ambiguity. This can concern agreements, rights or obligations. Do you want to stay ahead of the game? Then start with a watertight lease agreement that reflects the actual situation, not a standard model. Put everything in writing and communicate clearly during the term of the contract.

Commercial tenancy situations can be complex, with different rules and regulations depending on the type of space. Whether it concerns a 7:290 BW commercial space (small business space) or a 7:230a BW commercial space (other commercial space), each type has its own legal framework. Therefore, seek advice from the specialists in tenancy law and property law at Fruytier Lawyers in Business.

Do you have any questions about tenancy law? Feel free to contact us without obligation, one of our experienced tenancy law solicitors will be happy to help you! You can contact us by email, telephone or the contact form.