Your business will want the right premises in Gibraltar but in a commercial property market that is so small, you may benefit from an open mind!
There are four ways in which a business can hang a brass plate on the door and call a premises its home.
Renting commercial space
The first and with the lowest financial barriers to entry is of course to rent a property. Not all properties are available to rent so this option is more viable if you are looking for office space as opposed to retail space which will more likely attract a premium.
Like anywhere, a simple rental agreement involves a term, a monthly amount and some form of deposit and advance payment.
Paying a Premium
Some commercial rental contracts will command a premium, particularly those in prime locations such as busy retail areas.
Premium is a familiar concept to most people coming from the UK and it is very much like a Traspaso in Spain. It is the amount paid to the previous leaseholder to transfer the lease to you. A retail unit in a prime location or a bar are the types of premises that would have a lease premium.
These Commercial rental leases can vary in their length of time and negotiating a break clause is not uncommon. Aside from the break clause, there will normally be a penalty for ending a lease early.
Leasehold commercial property
The most common form of ownership in Gibraltar is leasehold, because ultimately all land in Gibraltar with small exception, is leased from the crown. These leases are generally considered to be owning that property.
As the Crown owns almost all of the land in Gibraltar and it never sells land but only leases it, freehold properties are rare and are all in the area of Main Street.