28 May 2026
France’s Economic Life Simplification Act changes several rules governing commercial leases. Some measures are particularly relevant to retail, wholesale, craft and commercial service premises.
A right to monthly rent payments
A tenant of premises used for retail or wholesale trade, commercial services or craft activities may request monthly rent payments if all undisputed rent and service charges are up to date. The change takes effect from the next payment date and also applies to existing leases.
More balanced index-linking clauses
Where an indexation clause based on the French commercial rent index caps increases, it must now provide for an equivalent cap on decreases. The aim is to prevent the clause from operating in only one direction.
Stricter limits on guarantees and deposits
For premises within the reform’s scope, amounts paid and guarantee commitments requested from the tenant are generally capped at three months’ rent. The Act also clarifies repayment rules and what happens to guarantees when the property is sold.
Termination clauses: payment extensions remain conditional
When rent is unpaid, a court may grant time to pay and suspend the effect of a termination clause. It must consider the tenant’s ability to clear the debt and verify that full payment of current rent resumed before the first hearing.
The precise scope and commencement date of each rule should be checked against the lease, the premises and the activity carried on.
Read Act No. 2026-403 of 26 May 2026 on Légifrance
Photo: Denny Müller / Unsplash.
Further reading : French Commercial Leases: Why a Notarised Deed Is Now Even More Valuable.
The firm does not contractually guarantee the accuracy or current validity of this information. To assess how it applies to your circumstances, please consult one of the firm’s notaries.
