How to Rent Commercial Premises in Colombia: Legal Guide and Commercial Code

Quick answer: Renting a commercial space in Colombia is not governed by Law 820 for housing, but by the strict Commercial Code (Articles 518 to 524). The golden rule every landlord should know is that, after 2 consecutive years with the same commercial establishment, the tenant acquires a renewal right subject to the exceptions in Article 518. Notice with at least 6 months' advance applies when the landlord invokes causes 2 or 3 of that article.

If you have a commercial space in El Poblado, a warehouse in Paloquemao, or an office in Chapinero, you know that the commercial sector can be much more profitable than traditional housing. Tenants are usually stable and handle renovations at their own expense. However, legally it's a minefield where many landlords make costly mistakes. If you want to see real options right now, you can view apartments and houses on Colombia Move — listing is completely free.

Honestly, if you're going to rent a commercial space, you can't use the same contract format you used for your apartment. Here I explain exactly what the Commercial Code says and how to protect your investment.

1. Commercial Code vs. Law 820: The Big Difference

The most common mistake beginner landlords make is believing that all rentals in Colombia work the same way. Law 820 of 2003 applies exclusively to urban housing. Commercial spaces, offices, and warehouses are governed by Articles 518 to 524 of the Commercial Code (Decree 410 of 1971).

Why this difference? Because commercial law seeks to protect the "goodwill" or clientele that a business has built in a physical location over time. The rules are mandatory, meaning you cannot bypass them, even if you include a clause in the contract stating otherwise.

According to active listings on Colombia Move (July 2026), there are currently 9 active listings for offices and commercial spaces. It's a good time to showcase your property, but you must do so with the proper legal protection.

2. The Right of Renewal (Article 518): The 2-Year Milestone

Article 518 is the heart of commercial leasing in Colombia. It establishes that once the tenant has occupied the space for two consecutive years with the same commercial establishment, they acquire the right to renew the contract, subject to the exceptions provided in Article 518.

As a landlord, you can only refuse to renew the contract in three specific situations (legal causes):

• Breach of Contract: If the tenant fails to pay rent, utilities, or violates other contract clauses.
• Personal Need: If you need the space for your own housing or to establish your own business that is substantially different from the tenant's.
• Reconstruction or Demolition: If the property must be demolished, requires major repairs that cannot be done with the space occupied, or for a new construction project.

I would skip any attempt to invent excuses to evict a commercial tenant. If you don't fit into one of these three causes, you are obligated to renew.

3. Commercial Notice (Article 520): The 6-Month Golden Rule

If you meet causes 2 or 3 mentioned above and want to recover your space, you must issue a "notice of termination." Article 520 requires you to notify the tenant in writing with no less than 6 months' advance before the contract expiration date.

Pay attention to this: when you invoke causes 2 or 3 of Article 518, if you do not provide notice at least six months in advance, the contract will be considered renewed under the same conditions and for the same term, according to Article 520. If you get the timing wrong, terminating a lease agreement early becomes a huge legal and financial headache.

Make sure to send the notification by certified mail to have legal proof of the delivery and receipt date.

4. Setting Rent and Disputes (Article 519)

A frequent question is: "If the tenant has the right to renew, can they force me to keep the same price?" The answer is no.

Unlike the rent increase rules for housing, where the government sets a maximum cap based on the CPI, in commercial spaces, the increase is governed by free agreement between the parties. If, at the time of renewal, they cannot agree on the new rent, Article 519 establishes that the difference will be decided judicially through an ordinary proceeding, with the intervention of expert appraisers.

In practice, almost no one wants to end up in court, so the ideal approach is to establish from day one in the contract how annual increases will be calculated (e.g., CPI + 3 points, or a fixed percentage).

5. Subleasing and Assignment (Article 523)

Another point where the Commercial Code surprises landlords is subleasing. According to Article 523, the tenant has the right to sublease up to 50% of the space without your prior authorization, as long as it does not substantially alter the commercial purpose of the property.

However, to sublease the entire space or assign the contract to a third party, your express written authorization is required. Make sure to make this very clear in the original contract to avoid your space ending up in unknown hands without your security screening.

6. Practical Tips for Landlords When Drafting the Contract

To wrap up, here are three practical steps you should take before handing over the keys to your commercial property:

• Verify land use (POT): Before signing, ensure that the tenant's commercial activity is permitted in your zone according to the Territorial Ordering Plan. If their business is shut down for improper use, they will stop paying you.
• Demand solid commercial guarantees: Unlike housing, security deposits are legal and very common in commercial rentals. You can demand insurance policies, joint guarantors, or cash deposits to cover potential damages to the property after heavy renovations.
• Register the contract: Although optional, registering the lease agreement with the local Chamber of Commerce legally protects the establishment and formalizes the commercial relationship with third parties.

Frequently Asked Questions

❓ What law governs lease agreements for commercial spaces in Colombia?

Commercial property leases are strictly regulated by the Commercial Code (Articles 518 to 524), not by Law 820 of 2003. The latter applies solely and exclusively to urban housing leases, so its rules are not applicable to businesses.

❓ When does the tenant acquire the right to renew the lease?

The tenant acquires the right to renewal after occupying the property for two consecutive years with the same commercial establishment. According to Article 518, it is not an automatic and unconditional extension: the landlord can refuse if there is a breach, if they need the property for their own housing or a substantially different business, or if it needs to be vacated for reconstruction, necessary repairs, demolition, ruin, or new construction.

❓ When does the six-month notice apply?

The six-month notice applies when the owner invokes the grounds in items 2 or 3 of Article 518. According to Article 520, they must notify the tenant no less than six months before the expiration; if this notice is omitted in these cases, the contract is understood to be renewed under the same conditions and for the same term.

❓ Is it legal to charge a security deposit on a commercial lease in Colombia?

Yes, cash security deposits are legal and common in commercial leases. Unlike housing leases, where Law 820 restricts cash deposits, in commercial properties, there is freedom to agree on these guarantees.

❓ Can the tenant sublease the commercial property without my authorization?

Article 523 allows the tenant to sublease up to 50% of the space without your authorization, as long as the commercial activity is not changed. To sublease 100% or assign the lease, they need your express written consent.

❓ What happens if we don't agree on the rent increase upon renewal?

According to Article 519, the dispute must be resolved by a judge through a verbal process with the intervention of expert appraisers. As there is no government-set increase cap for commercial properties, it is advisable to agree on an adjustment mechanism from the outset.