French professional vs commercial leases: how to choose in 2026

Choosing between a French bail professionnel (professional lease) and a bail commercial (commercial lease) commits your business for several years. It sets the minimum term, whether you have a renewal right, how the rent is indexed and the cost of an early exit. Negotiations too often focus on the headline rent while the ancillary clauses weigh far more heavily on the margin.

The two contracts follow different logics. The commercial lease falls under the protective statute of the French Commercial Code; the professional lease, more flexible, is designed for the liberal professions. But the label is not decisive: it is the real nature of your activity that determines the applicable regime, and the accounting treatment of the rent deserves as much attention as the legal drafting.

Direct answer. The commercial lease (articles L145-1 and following of the Commercial Code) runs for a minimum of nine years, grants a renewal right and "commercial property", with eviction compensation if the landlord refuses to renew. The professional lease (article 57 A of the Law of 23 December 1986) runs for six years minimum, with no renewal right, but the tenant can leave at any time on six months' notice.

The commercial lease applies to premises where a commercial, artisanal or industrial business is operated. It is governed by the statut des baux commerciaux, one of the most tenant-protective frameworks in French law. The trade-off for that protection is a more rigid structure and strict formal requirements.

The professional lease covers liberal and non-commercial activities: lawyers, doctors, chartered accountants, consultants, healthcare practitioners. It offers great drafting freedom and an easy exit, at the cost of significantly weaker protection.

The decisive point is that the regime does not depend on your preference. A commercial activity carried out under a lease labelled "professional" can be reclassified. Conversely, some liberal professions may opt for a commercial lease if both parties agree. The actual qualification always prevails over the title.

Duration is one of the most structuring differences.

The commercial lease follows the so-called 3-6-9 scheme: nine years minimum, with the tenant able to terminate at the end of each three-year period (after three years, then six), on six months' notice. The landlord remains bound for the full nine years.

The professional lease runs for six years minimum. Its flexibility is asymmetric in the tenant's favour: the tenant may terminate at any time, on six months' notice, without waiting for a triennial break. The landlord cannot give notice before the term.

By default, a liberal profession falls under the professional lease. That is the regime designed for it: light framework, easy exit, reduced formalism.

But it is not always the most protective choice. A practitioner whose clientele is tied to the location (a ground-floor physiotherapy practice, a dental surgery with a local patient base) sometimes has an interest in negotiating a commercial lease. The renewal right and commercial property then secure the value of the place of practice, which may count at the time of a sale of goodwill or patient base.

In our files, we see liberal professionals who signed a professional lease for its simplicity and later regret the absence of a renewal right when the landlord takes back the premises at term. The right reflex is to reason on the real installation horizon, not on the ease of signing.

Indexation is the second underestimated subject. The entry rent is only a starting point; the indexation clause determines its trajectory across the whole term.

Two quarterly indices published by INSEE serve as references:

1. The ILC (commercial rents index) covers commercial and artisanal activities. It is the most common reference index for commercial leases.
2. The ILAT (tertiary activity rents index) covers tertiary, liberal and office activities. It is the usual index for professional leases and for office commercial leases.

The indexation clause adjusts the rent each year according to the variation of the chosen index. For the commercial lease, a statutory capping mechanism also frames the review of the renewed rent, save in cases of uncapping (a material change in local commercial factors, or a lease longer than nine years, for example).

Always check which index applies, its base value and its reference date. A poorly calibrated clause can turn an attractive entry rent into a heavy charge within a few years.

This is the contribution a chartered accountant brings that purely legal guides ignore. The lease generates several distinct entries.

The pas-de-porte (key money) warrants particular care: depending on its nature (additional rent or consideration for the lease right), its tax treatment differs. Wrongly characterised, it may be reintegrated.

A frequent question is VAT. The bare letting of professional premises is in principle VAT-exempt, but the landlord may opt for VAT (article 260, 2° of the General Tax Code). This option is common in commercial property, because it lets the landlord recover VAT on works and charges VAT on rents, which a VAT-registered tenant recovers in turn. A tenant under the franchise regime or not VAT-registered, however, bears that VAT as a net cost.

Before committing your signature, review the items that really drive the total cost:

1. The allocation of charges, property tax and works between landlord and tenant (commercial leases now frame this allocation).
2. The destination clause: an unauthorised change of activity exposes you to a risk of termination or refusal of renewal.
3. The conditions for assigning the lease and subletting, often more tightly framed in commercial leases.
4. The restoration clause at the end of the lease, which can represent a significant and overlooked cost.
5. The indexation index, its base value and any capping clause.
6. Whether or not VAT applies to the rent.

The lease directly affects the break-even point, cash flow, the ability to sell the activity and sometimes the valuation of the business. The renewal right of a commercial lease is a transferable element of value; its absence in a professional lease leaves the tenant exposed at departure.

In a file we reviewed recently, the rent was not the issue: the real tension came from a very broad restoration clause and a costly early exit. The lease then becomes a management line in its own right, not a mere start-up formality.

For the patrimonial stakes of holding the premises, see Real estate, assets and managers and, if you hold through a dedicated structure, LMNP or SCI: which tax regime.

A liberal practice signs a professional lease at EUR 24,000 annual rent, indexed on the ILAT. If the index rises 3% a year, the rent reaches around EUR 24,720 in year two, then close to EUR 27,800 after five years, with no renegotiation. Over the six-year term, the cumulative additional cost from indexation alone exceeds EUR 10,000 compared with a fixed rent.

Conversely, a business that signs a commercial lease protects the value of its location: the renewal right and commercial property are an asset that can be mobilised at the time of a sale of goodwill. The exit, indexation and allocation of works should be framed from the outset, because they will weigh more later than the headline rent.

Three reflexes limit unpleasant surprises. First, check the real nature of your activity, because it determines the applicable regime regardless of the label. Second, model the full cost over three to six years: indexed rent, charges, deposit, works, restoration, exit costs. Third, read the notice, renewal and assignment clauses before committing, not after.

Having your lease reviewed and secured before signing or renegotiation allows these impacts to be quantified and the sensitive clauses identified. For full accounting and tax support, see also our chartered accountancy firm in Paris.

The choice between a professional and a commercial lease is not made out of habit. It depends on your activity, your installation horizon and the value the premises represent in your business. Poorly framed premises often cost more than a slightly higher but better-secured rent.

Current as of 26 May 2026. This article is for information purposes only and does not replace advice tailored to your situation. For any decision, consult a chartered accountant registered with the Ordre des experts-comptables.