Flexible Office vs Lease in Madrid: Contracts, Terms, Deposits and Tax (2026)

In Madrid the contract decides almost everything else: the term, the deposit, who fits out the space, and whether you need a local company to sign. This guide sets the three contract forms side by side and then covers what a company from abroad needs in place before it signs. Flexible space is quoted per desk (puesto) per month; conventional leases are quoted per square metre per month. Both are before VAT (IVA) at 21%.

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The three contracts

Coworking or serviced office

A service contract (contrato de prestación de servicios), not a lease, monthly or for six to twelve months with one month’s notice. One all-in fee per desk covers rent, community charges, utilities, internet, cleaning, reception and meeting-room credits; a deposit of one to two months is usual. IVA at 21% is added.

Managed office (oficina flexible privativa)

Twelve to thirty-six months for a dedicated floor fitted and run by the operator, priced per desk or per month.

Conventional lease (arrendamiento de uso distinto de vivienda)

Governed by the Ley de Arrendamientos Urbanos with terms freely agreed, commonly three to five years with a mandatory minimum period (obligado cumplimiento) before the tenant can leave. Rent is quoted per square metre per month; the tenant usually also pays IBI (property tax), community charges and insurance. The legal deposit (fianza) is two months’ rent for non-residential leases, often with an additional bank guarantee. Fit-out and reinstatement are the tenant’s cost.

Side by side

Setting up as a company from abroad

• A foreign company can take flexible space with company documents and the signatory’s ID; many operators also accept freelancers (autónomos) and individuals.
• Incorporating a Spanish S.L. requires a tax number (NIF) for the company and an NIE for each foreign director or shareholder, a notarial deed and registration at the Registro Mercantil; allow two to six weeks. The company needs a registered address (domicilio social), which a virtual-office product can provide.
• Madrid’s regional government runs Invest in Madrid for incoming companies; the national Startup Law gives tax relief and a visa route for qualifying startups and remote workers.
• IVA at 21% applies to office fees and most commercial rents; a Spanish VAT-registered business recovers it. Some operators quote per desk including services, so ask what a quote covers.

Who pays

• Flexible space: the operator pays the introducer when a tenant signs; the tenant pays nothing and the rate is the same as going direct.
• Leases: the landlord usually pays the agent’s fee (honorarios), often about one month’s rent; a tenant who appoints their own adviser agrees that fee separately.

SquareFoot lists 25 flexible office centres in Madrid from 4 operators, collected October 2026 from the operators’ own published pages. Guide written by SquareFoot; last reviewed October 2026.

Frequently asked questions

Is a flexible office in Madrid a lease?

No. It is a licence or service agreement for a fitted room with one monthly fee, usually one to twelve months and rolling after that. It gives no security of tenure and no fit-out obligation, which is the trade-off against a conventional lease.

Do I need a Spanish company to rent an office in Madrid?

Not for flexible space, which a foreign company or an individual can take with ID and company documents. A conventional lease usually needs a Spanish entity, and foreign directors need an NIE before they can incorporate one.

What is the mandatory minimum period in a Spanish office lease?

Most commercial leases include an obligado cumplimiento, a period during which the tenant cannot leave without paying the remaining rent, commonly one to three years inside a longer term. Flexible contracts have no equivalent beyond their notice period.

Related: How to find office space in Madrid · Where to put an office in Madrid · Live listings in Madrid

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