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Commercial lease
Extension of the 3.5% cap on the Commercial Rent Index for SMEs until March 31, 2024
Publié le null - Mise à jour le 20 juillet 2023 - Legal and Administrative Information Directorate (Prime Minister)
The Law on Emergency Measures for the Protection of Purchasing Power of 18 August 2022 capped the annual variation of the Commercial Rent Index (CLI) for small and medium-sized companies (SMEs) at 3.5% until 1er quarter 2023. This cap is extended until March 31, 2024 by a law of July 7, 2023.
The 3.5% ceiling extended by one year
In order to protect SMEs from the impact of the sharp rise in inflation, the measure limiting the change in the ILC to 3.5% over a one-year period has been extended.
This cap now applies until March 31, 2024. It therefore relates to the indices of the 2e quarter 2022 to 1er including quarter 2024.
Who can benefit from this cap?
The cap on the variation in ILC concerns SMEs within the meaning of EU law. These are companies that cumulatively:
- count less than 250 employees ;
- shall not exceed EUR 50 million in annual turnover or whose total annual balance sheet does not exceed EUR 43 million.
Moreover, SMEs covered by this scheme should not be closely controlled or substantially owned by another company.
Which contracts are affected by the cap?
The cap on the annual variation of the ILC applies to SMEs holding a commercial lease whose rent revisions are framed by the quarterly commercial rent index (automatic revisions, triennial revisions, lease renewal).
Please note
The ILC cap does not apply in the event of a change in activity (called de-specialization) or a material change in local marketing factors.
It also does not apply to contracts whose rent revisions are subject to other indices (construction cost index or tertiary activity rent index).