Legal Q&A · Ownership, Land & Lease

We have invested a substantial amount in our leased business premises. Will we recover anything when the lease ends?

Law as at 3 October 2026

Short answer

You may recover something only if the landlord consented to the alterations. If the landlord undertook to reimburse their cost, you can generally claim those costs after the lease ends, less depreciation through use. If the landlord merely consented, you are entitled to compensation for the increase in the value of the premises. You must remove alterations made without consent at your own expense when the lease ends. The claim is against whoever is the landlord on the date the lease ends, and it is subject to a limitation period.

A restaurant tenant installs a kitchen and ventilation system, a retailer renovates the shopfront and floors, or a company installs partitions and service lines in a warehouse. When the lease ends following notice or expiry of its term, the investment remains in someone else’s property. Act No. 116/1990 Zb. on the Lease and Sublease of Non-residential Premises does not regulate compensation for these investments, so the Civil Code (Act No. 40/1964 Zb.) applies. The outcome depends primarily on what you agreed with the landlord before the work began.

Three situations under the law

The following quotation is reproduced in its original language:

Zmeny na veci je nájomca oprávnený vykonávať len so súhlasom prenajímateľa. Úhradu nákladov s tým spojených môže nájomca požadovať len v prípade, že sa na to prenajímateľ zaviazal. Ak zmluva neurčuje inak, je oprávnený požadovať úhradu nákladov až po ukončení nájmu po odpočítaní znehodnotenia zmien, ku ktorému v medziobdobí došlo v dôsledku užívania veci. Ak prenajímateľ dal súhlas so zmenou, ale nezaviazal sa na úhradu nákladov, môže nájomca požadovať po skončení nájmu protihodnotu toho, o čo sa zvýšila hodnota veci.

§ 667 ods. 1 Občianskeho zákonníka

This produces three different outcomes:

  • The landlord consented and undertook to reimburse the costs. Unless the agreement specifies an earlier date, you may claim the costs after the lease ends, less any depreciation of the alterations resulting from use in the meantime.
  • The landlord consented but did not undertake to reimburse the costs. After the lease ends, you are entitled only to compensation for the increase in the value of the premises. This may be less than the costs incurred, for example where the alterations were tailored to your business.
  • The landlord did not consent. After the lease ends, you must restore the premises to their original condition at your own expense. If the alterations pose a risk of substantial damage to the landlord, the landlord may withdraw from the agreement (Section 667(2)).

In its judgment in case 2Cdo/140/2025 of 30. 4. 2026, the Supreme Court of the Slovak Republic emphasised that these are two partially distinct claims, neither of which is a claim for restitution of unjust enrichment. They are statutory claims arising from the lease relationship.

Who must pay, and the time limit for claiming

The person liable is whoever is the landlord when the lease ends. If the building is sold during the lease, the new owner assumes the landlord’s position (Section 680(2)), and the claim is against that owner, rather than the original owner with whom you agreed the alterations. This was also the interpretation adopted by the Supreme Court of the Slovak Republic in the judgment cited above.

The claim arises only when the lease ends. Under the Civil Code, the general limitation period is 3 years and runs from the day on which the right could first have been exercised (Section 101). For a lease between businesses, it is also necessary to assess whether the Commercial Code governs limitation. You should therefore assert the claim as soon as possible after the lease ends.

What to agree before investing

Set out the reimbursement terms in the agreement or an addendum before work begins. In particular, agree on:

  • the landlord’s written consent to the precise scope of the alterations,
  • whether and when the landlord will reimburse the costs, for example by setting them off against rent during the lease,
  • how the value of the alterations will be determined when the lease ends and what applies if it ends early,
  • which alterations will remain when you leave and which you will remove.

Unless the parties agree otherwise, the tenant must return the non-residential premises in the condition in which they received them, allowing for ordinary wear and tear (Section 13 of Act No. 116/1990 Zb.). If the agreement states that the tenant makes alterations at their own expense and without any entitlement to compensation, the scope of that waiver depends on its precise wording and interpretation. Before investing, therefore, do not sign it without understanding what it means for you. Keep invoices, photographs of the condition before and after the work and, where amounts are disputed, an expert report on the increase in value until the matter is settled. We recommend discussing the tax depreciation of investments in leased premises with a tax adviser.

We will review the agreement with you before you invest and set out the terms for the landlord’s consent, reimbursement of costs and the condition of the premises on handover as part of our non-residential leasing service. If the lease has already ended, we will assess what claim has arisen and against whom it should be asserted.

This answer provides general information on the law as at 3 October 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.

More legal questions

All questions and answers
  1. We are creating an easement for utilities. How should it be surveyed? The scope of each right must be definite. If an easement burdens only part of a plot, that part must be delineated by a survey plan. Installation of a utility may be limited to a surveyed strip, while access for maintenance may cover the whole clearly identified plot. That difference is not in itself a defect: the agreement must clearly distinguish the individual rights and define their spatial and substantive scope.
  2. We are dividing land using a survey plan. Do all co-owners need to consent? It depends on what the survey plan is intended to achieve. The plan itself is a technical document and recording it does not change rights. However, if it creates a new parcel from parts subject to different legal interests, it can be recorded only together with registration of ownership of all those parts. A legal act is then needed, and all co-owners are jointly and severally entitled and bound by legal acts concerning the jointly owned property.
  3. A co-owner refuses to sell. Can co-ownership be ended against their wishes? Yes. If no agreement is reached, the court terminates and settles co-ownership on the application of any co-owner. It follows an order: first it considers whether the property can feasibly be divided; if not, it awards the property to one or more co-owners against reasonable compensation; if nobody wants it, it orders a sale and divides the proceeds according to shares. An agreement terminating and settling co-ownership of immovable property must be in writing.
  4. A co-ownership share is mortgaged. Can the co-ownership still be settled? Yes, but settlement does not remove the encumbrances. The law expressly states that ending and settling co-ownership cannot prejudice persons holding rights over the property. The bank’s mortgage therefore does not disappear on settlement and continues to burden the property given as security. It must be dealt with separately with the creditor, usually before signing the agreement.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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