Your company is growing faster than expected, shrinking due to a reorganisation, or relocating to another city, and the lease still has three years to run. The question on the table is: can I terminate my commercial lease early? The short answer is: only if the contract allows it. The long answer, with the exceptions, the alternatives and the costs, follows below. We first cover the legal basis, then the options per lease regime, then the five routes available if your contract offers no termination option, and finally the formal steps for giving notice itself.
Can you terminate a commercial lease early?
A fixed-term lease agreement in principle only ends on the agreed end date. Early termination is only possible if:
- the contract contains a break option or an early termination clause;
- the landlord agrees to an earlier termination (mutual agreement);
- the law provides a special ground, such as bankruptcy or a serious failure on the landlord's part.
If the contract says nothing about early termination, the agreed term applies. A tenant who leaves anyway and stops paying still owes the rent until the end of the agreement, plus any damages. That is the core rule everything else revolves around; the rest of this article looks at how you can still find room to manoeuvre within it.
Two lease regimes determine your room for manoeuvre
Dutch tenancy law treats commercial space in two categories, and the difference matters greatly when it comes to early termination:
Offices, warehouses and industrial units (article 7:230a of the Dutch Civil Code (BW))
Freedom of contract applies to offices, storage, production and logistics space. Whatever the parties have agreed on the term, notice period and break options is what counts. The law adds one protective rule: after the lease ends, the tenant is entitled to eviction protection of up to one year, extendable via the subdistrict court (kantonrechter). That helps if you need more time to leave, not if you want to leave earlier.
Retail space and hospitality premises (article 7:290 BW)
For space with a public-facing function, mandatory law applies to protect the tenant: an initial lease term of five years, automatically extended by a further five years, with termination by the landlord only permitted on statutory grounds. For the tenant, this means they can give notice towards the end of the first five years with a minimum notice period of one year, but early termination within such a term without a clause or consent is not possible. Deviating arrangements to the tenant's disadvantage are only valid with the subdistrict court's approval.
Which regime applies depends on the actual use, not on what is stated at the top of the contract. A showroom selling to private individuals is 7:290 space, even if the contract says "office space".
Early termination with a break option
A break option is a contractual arrangement allowing one or both parties to end the lease at a fixed point before the term expires, for example after three years in a five-year contract. Pay attention to three things:
- The notice period: the break option usually has to be invoked six to twelve months before the break date. Anyone who misses the deadline is tied to the contract until the end of the term.
- The form: almost always in writing and by registered post, sometimes via a bailiff's writ. An email is not always sufficient; see terminating a commercial lease by email.
- The conditions: some break options are linked to a break fee (for example three months' rent) or to the condition that the tenant has no rent arrears.
Always negotiate a break option when entering into the contract; you will rarely obtain one afterwards. More on what to record when signing in what to check in a commercial lease agreement.
Five routes if your contract has no break option
1. Termination by mutual agreement
The most commonly used route. You ask the landlord to end the contract earlier, usually against a surrender payment (buy-out): a portion of the remaining rent, often three to twelve months, depending on how quickly the landlord expects to find a new tenant. In a tight market, where the landlord can re-let the space at a higher price, the surrender payment is low or nil. Record the agreements in a termination agreement, including the handover and the return of the deposit.
2. Putting forward a replacement tenant
Landlords are more willing to cooperate if you bring in a creditworthy successor yourself who takes over the contract (assignment of the lease, article 6:159 BW) or enters into a new contract. The landlord must consent; they may refuse a successor, but in practice will rarely do so if the successor's financial position is sound.
3. Subletting
If you are not using the space yourself but still have to keep paying the rent, subletting (part of) the space is one way to cover the costs. The ROZ model lease (ROZ – Raad voor Onroerende Zaken, the standard lease template used across the Dutch market) prohibits subletting without the landlord's written consent, so ask for it first. You remain liable for the rent yourself. Read subleasing office space: a complete guide for tenants.
4. Substitution of tenant (retail space only)
For 7:290 space, the law provides for substitution of tenant (indeplaatsstelling, article 7:307 BW): anyone selling their business can ask the court to substitute the buyer as tenant in their place, even if the landlord refuses. The condition is that the buyer continues the business and offers sufficient guarantees. This route does not exist for office and other commercial space.
5. Dissolution for the landlord's failure to perform
If the landlord seriously fails to deliver what was agreed (structural defects that make use of the space impossible, no repair after a formal notice of default), the tenant can claim dissolution of the contract (article 6:265 BW) or, in the case of defects, a rent reduction. This is a legal process with a burden of proof; it is not a way to get out of a contract you simply no longer need.
Special situations
- Tenant bankruptcy: the receiver and the landlord can terminate the lease with a maximum notice period of three months (article 39 of the Dutch Bankruptcy Act), regardless of the contractual term.
- Merger, acquisition or moving to another BV: the contract does not automatically transfer. Arrange assignment of the lease and report changes; see reporting a change to your BV to the landlord.
- Sale of the property: "sale does not break lease" (koop breekt geen huur); the new owner continues the contract. See my rental property was sold: what are my rights as a tenant.
- Diplomatic clause: some contracts contain a clause allowing termination in the event of relocation, reorganisation or loss of a permit. Check the special provisions.
What does early termination cost?
When terminating without a break option, budget for the following items:
- Surrender payment: a portion of the remaining rent and service charges, by negotiation.
- Handover: the space must be returned in the agreed condition: alterations removed, damage repaired. With an early departure, the investment in the fit-out is also not fully recovered.
- Double costs: the period during which you pay for both the old and the new space.
- Legal costs: for the termination agreement or, in the event of a dispute, the proceedings.
Weigh those costs against the alternative: continuing to pay until the end of the term and subletting the space. In many cases, a well-negotiated buy-out is cheaper than a year of vacancy at your own expense.
Step-by-step plan: how do you give formal notice?
- Read the contract and the general terms: the term, break option, notice period, formal requirements and the address to which notice must be sent.
- Determine the final notice date and put it in your diary with a margin of a few weeks.
- Give notice in writing, by registered post (and by email as a backup), stating the address, contract date, break date or end date and the ground for termination. Ask for written confirmation.
- Without a break option: do not send a notice of termination but a request for termination with a proposal (buy-out, successor, sublet). A unilateral termination without grounds can be interpreted as breach of contract.
- Plan the handover: pre-handover inspection with the landlord, repair work, final handover with a report and photos, return of the keys and the deposit.
- Arrange your follow-up premises in time: see our step-by-step plan for finding commercial space.
Frequently asked questions about early termination
What is the notice period for a commercial lease?
For office and other commercial space, whatever is stated in the contract applies, usually twelve months before the end of the term. Without an agreement, a notice period equal to the payment term applies, with a minimum of one month and a maximum of three months. For retail space, the statutory minimum is one year.
Can I terminate a five-year lease early?
Only with a break option in the contract, with the landlord's consent, or on a statutory ground such as bankruptcy. Otherwise the contract continues until the end date.
Can the landlord terminate early?
For office and other commercial space, only if the contract allows it. For retail space, only towards the end of a lease term and on statutory grounds, such as urgent own use.
Is giving notice by email valid?
Only if the contract allows it or the landlord confirms receipt. If in doubt, send it by registered post and use email as a backup.
What happens if I simply stop paying?
The rent remains due, the landlord can draw on the deposit or bank guarantee, claim collection costs and interest, and ultimately seek dissolution and damages. It is better to negotiate a termination.
Want to know what a termination would realistically cost in your situation, or are you already looking for replacement space? Our advisors know the market and the customary arrangements; get in touch or view our offices for rent.
