Do I have to put a security deposit into a commercial lease?

Verified 28 May 2026 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)

A security deposit is a sum of money paid by the tenant (called lessee) to the owner (called lessor) at the time of signing the commercial lease. It allows the landlord to cover unpaid rent or necessary repairs in case of damage to the tenant. This amount is retained for the duration of the lease. The payment of a security deposit is not mandatory.When it is provided for, it is subject to specific rules of restitution at the end of the lease and in case of sale of the rented premises.

The payment of a security deposit is not required.

Where the parties decide to pay a security deposit, the amount of the deposit shall be freely determined by the parties. In practice, it amounts to one of the following amounts:

  • Or 3 months of rent when the rent is payable quarterly and in advance
  • That is 6 months of rent when the rent is payable per quarter and at maturity.

If the security deposit exceeds these amounts (3 months in case of advance payment or 6 months in case of payment on maturity), the owner must pay the tenant interest. This interest is calculated at the rate charged by the Banque de France for advances on securities.

In any case, the lessor must not claim from the lessee (or tenant) VAT on the amount of the security deposit.

Warning  

For leases entered into or renewed from May 28, 2026, the rules of public policy concerning the security deposit are now as follows:

  • The security deposit is obligatorily capped at one quarter of rent (3 months). This ceiling also applies to commitments and guarantees requested by the lessor (e.g. bank guarantee, first demand guarantee, mortgage, term account pledge) provided in place of or in addition to a cash deposit.
  • The security deposit cap applies only for the premises intended a retail or wholesale trade, or a business providing services of a commercial or craft nature.
  • The security deposit does not generate interest for the benefit of the tenant.

Where the commercial lease relates to offices or warehouses, the new rules on the capping of the security deposit and the non-payment of interest by the lessor do not apply.

Amounts paid as security must be refunded to the tenant when he leaves the premises, i.e. when the keys are handed over. The law does not provide for no maximum delay for the return of the security deposit. However, a time limit is often specified in the commercial lease agreement.

For leases signed or renewed from May 28, 2026, news rules of public policy shall apply:

  • The sums paid as security shall be returned to the tenant within a reasonable period of time, which may not exceed 3 months as from the handover of the keys. The keys are handed over either by registered letter with AR or by hand.
  • Where the landlord has received commitments and/or guarantees (such as a bank guarantee, a first-demand guarantee or a mortgage) from the tenant, he shall have at his disposal 6 months delay as from the handover of the keys to return them to the tenant. The lessor must carry out the releases and return to the tenant the documents concerning these properties and/or these titles.
  • The amount of the security deposit returned is the amount paid at the conclusion of the contract less the amounts remaining due to the lessor and the justified amounts that the tenant should pay (for example: charges).

FYI  

For the leases in progress on may 26, 2026, these new rules for the return of the security deposit shall apply as of 26 August 2026.

The security deposit is a personal debt from the landlord to the tenant. When the rented premises are sold, it is the original lessor who returns the security deposit to the tenant.

Warning  

In case of change of ownership of the rented premises as of august 26, 2026, the rules for the return of the security deposit shall change:

  • Where the security deposit consists of sums paid as security, it shall be new landlord who must return the sums paid as security to the tenant.
  • Where guarantees of other kinds (bank guarantee, first demand guarantee, mortgage) have been provided, the change of owner of the premises results in the lapse of the guarantees. The original lessormust return to the tenant the documents concerning these guarantees and proceed to the releases required within 6 months.

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