Municipal business licences: terrace, vado and public space occupation

Last updated 16 July 2026 · Reviewed by Jaime Piñeira Pardo, lawyer registered with the ICAM bar, no. 138826 · English version of our Spanish guide.

Municipal business licences authorise you to use public space or carry out minor works: outdoor terraces, a vado for vehicle access, temporary occupation of public roads and prior communication for minor works. Each town hall regulates them by bylaw, with its own tasa (official fee) and deadlines. Managora identifies which one you need, prepares the application and submits it for you.

We handle the whole procedure for you, from start to finish.

You describe your case in a chat and sign; we file it with the Spanish authorities. Fixed price from €181.00 (21% VAT included), plus the tasa (official fee) where there is one.

See the procedure

What is new, and the law that applies

State framework in force as of 17/07/2026: Ley 39/2015 (art. 24 silence, art. 69 responsible declaration and communication), RDLeg 7/2015 Ley de Suelo (art. 11.4: negative silence in urban planning acts such as major works; art. 11.3: powers or rights against urban planning are not acquired by silence), RDLeg 2/2004 de Haciendas Locales (art. 20 public domain tasas; art. 100-103 ICIO) and Ley 12/2012 (responsible declaration for commerce up to 750 m², threshold raised by Ley 5/2015).
Madrid: new terrace bylaw in force since 1 January 2026, which requires a permanent accessible pedestrian route, generally removes the terrace extensions onto the road from the covid stage and reinforces the control of timetables and the number of authorised tables (data to be confirmed against the official municipal text).
The occupation of the public domain (terrace, vado and temporary occupation) follows the negative silence rule of art. 24.1 of the Ley 39/2015: it is not understood to be granted by the mere expiration of the deadline.
The specific tasas, deadlines and forms are set by each town hall in its bylaw; check the updated amount on the procedure page.

What are municipal licences for terraces, vados, occupation and works?

These are authorisations granted by your town hall to use public space or carry out small works. They do not depend on the State or the autonomous community: each municipality regulates them in its own bylaw and sets its tasas under the Ley 7/1985 (the Local Government Bases Act).

This guide covers 4 of them. The terrace licence (tables and chairs of a bar or restaurant on the pavement or square), the vado licence (reserving the kerb in front of a garage or vehicle access), the temporary occupation of public roads (skips, scaffolding, fences, moving or cranes) and minor works (prior communication or responsible declaration).

The first 3 occupy the public domain and carry a tasa for that use. Minor works are communicated and, unless they are major works, they entitle you to start from the moment of submission.

Who needs them and which one applies to me?

The terrace is for the hospitality sector: any bar, café or restaurant that wants to put tables in the public space. It is always linked to the activity licence or declaration of the premises.

A vado is needed by anyone who has a garage, workshop, car park or vehicle access and wants to prohibit parking in front to be able to enter and exit. The approved plaque with the authorisation number is mandatory.

Temporary occupation is needed by anyone (an individual, a community of owners or a company) who is going to place a rubble skip, scaffolding, a fence, a crane or carry out a move that invades the road or pavement.

Minor works cover small renovations without a technical project. If the work is structural, expands the surface area or is in a protected building, it ceases to be minor and requires a building licence.

What documentation and requirements do they ask for?

It varies by municipality, but the core is the same. For the terrace: valid activity title for the premises, plan or sketch with the surface area to be occupied and the number of tables and chairs, furniture report and civil liability insurance. An accessible pedestrian route free of obstacles must be guaranteed (the Orden VIV/561/2010 sets 1.80 metres of free passage width; some bylaws allow less as an exception).

For the vado: details of the property and the access, number of spaces, sometimes a plan and photograph, and the placement of the approved plaque.

For temporary occupation: location plan, dates and surface area, civil liability insurance and, frequently, a deposit that is returned upon restoring the pavement. For skips and scaffolding, insurance is common.

For minor works: description and budget of the work. If there is scaffolding, fences or accessibility improvements, a responsible declaration is usually required instead of prior communication.

How much do they cost and how is the tasa calculated?

There is no national rate: each town hall approves its tax bylaw under article 20 of the consolidated text of the Ley Reguladora de las Haciendas Locales (RDLeg 2/2004). You can see the updated amount and what the Managora service costs on the procedure page.

The terrace and temporary occupation are charged per square metre and period (season, days or hours). The vado is an annual tasa that is renewed each financial year. Works carry a processing tasa and, in addition, the Impuesto sobre Construcciones, Instalaciones y Obras (ICIO), with a maximum rate of 4% on the cost of the work (articles 100 to 103 of the same text).

A deposit (occupations) or the cost of the approved plaque (vado) may be added to these amounts.

How long do they take and what happens with administrative silence?

The deadlines are set by each bylaw. The key is the direction of the silence: when the application transfers powers over the public domain to the interested party, the silence is negative (article 24.1 of the Ley 39/2015). That is why the terrace, the vado and the occupation of public roads are not understood to be granted by the mere passage of time, you must wait for the express resolution.

Minor works work differently. The responsible declaration and the communication (article 69 of the Ley 39/2015), which urban planning legislation and town halls call prior communication, empower you to act from their submission with the complete documentation, without prejudice to the subsequent control of the town hall. In contrast, major works require a licence and the silence is negative (article 11.4 of the RDLeg 7/2015): powers or rights that contravene urban planning are never acquired by silence (article 11.3 of the same text).

As a precaution, it is advisable to submit in advance, especially for occupations and moves, where many bylaws ask for several working days of notice.

What changes in 2026?

The state framework remains (Ley 39/2015, RDLeg 7/2015, RDLeg 2/2004 and Ley 12/2012), but the new developments arrive by municipal bylaw.

Madrid debuts a new terrace bylaw on 1 January 2026: it requires a permanent accessible pedestrian route, generally removes the terrace extensions onto the road inherited from the pandemic and reinforces the control of timetables and the number of authorised tables. Other town halls have followed a similar line.

It is advisable to review the tax bylaw every year, because the tasas are updated. Managora checks the current version before submitting.

Step by step

1
Identify the authorisation(Before installing anything or starting the work)
Determine which of the 4 you need (terrace, vado, occupation or work) and whether your town hall processes it by licence, responsible declaration or prior communication.
2
Gather the documentation
Activity title of the premises (terrace), location plan or sketch with the surface area to be occupied, civil liability insurance, budget (works) and access or vehicle details (vado).
3
Submit at the town hall's electronic headquarters(Minimum advance notice according to the bylaw (often several working days))
Use the official form of your municipality in the general registry. For occupations and moves, do it in advance.
4
Pay the tasa (self-assessment)(Upon submission or before starting)
Tasa for the use of the public domain or processing and, in works, the ICIO. Sometimes a deposit is required.
5
Wait for the resolution or start according to the regime(Resolution period of the bylaw)
The prior communication and the responsible declaration empower you from submission. The licence for a terrace, vado, occupation or major work requires an express resolution, with negative silence.
6
Place the signage and comply with the conditions
Approved plaque on the vado, accessible pedestrian route on the terrace, signpost and remove the skip or scaffolding when finished, and maintain the number of authorised tables.

A worked example

Interior renovation of premises (minor work) with a material execution budget of €6,000. The ICIO is illustrated by applying the legal maximum rate of 4% (each town hall sets its own, up to that maximum).

Tax base (real and effective cost of the work): €6,000
ICIO rate (legal maximum, art. 100-103 TRLRHL): 4%
ICIO = €6,000 x 4% = €240
To this is added the processing tasa for the prior communication or responsible declaration, according to the bylaw

Estimated ICIO of €240 with the maximum rate. The actual rate and the processing tasa depend on your town hall; the exact amount of the Managora service appears on the procedure page.

The 4 municipal authorisations at a glance

Authorisation	What it covers	Usual title	Tasa or tax	Administrative silence
Outdoor terrace	Tables, chairs, parasols and hospitality furniture on the pavement or square	Licence (public domain) or responsible declaration (private land for public use), depending on the bylaw	Tasa for the use of the public domain (art. 20 TRLRHL)	Negative if it occupies the public domain (art. 24.1 Ley 39/2015)
Vado	Reservation of the space in front of a vehicle access, with an approved plaque	Vado licence (annual)	Tasa for the entry of vehicles across pavements (art. 20 TRLRHL)	Negative (affects the public domain)
Temporary occupation of public roads	Skip, scaffolding, fence, materials, crane or move	Temporary occupation licence	Tasa per m² and day (art. 20 TRLRHL), plus deposit and insurance	Negative (affects the public domain)
Minor works	Small works without a technical project: renovations, re-roofing, air conditioning, adaptation of premises	Prior communication or responsible declaration (licence if it is a major work)	Processing tasa and ICIO (art. 100-103 TRLRHL, max. rate 4%)	Empowers from submission; major work: negative (art. 11.4 RDLeg 7/2015)

Minor works: prior communication, responsible declaration or licence

Instrument	When it is used	Effect	Example of work
Prior communication	Simple work, without scaffolding, fences or technical direction	Legitimises starting from submission	Tiling, painting, changing interior flooring, replacing toilets
Responsible declaration	Work with scaffolding, fences, accessibility improvements, air conditioning or re-roofing	Legitimises starting from submission, with subsequent control	Air conditioning installation, re-roofing, property enclosure
Building licence	Major work or with a technical project (Ley 38/1999), or in a listed building	Requires express resolution; negative silence	Extension, change of structure, work in a protected building

Temporary occupation according to the element

Element	Tasa concept	Specific requirement
Building skip	m² occupied per days	Civil liability insurance; signage and removal when finished
Scaffolding or building fence	m² occupied per days	Civil liability insurance; often linked to the building licence
Move (lorry or platform)	m² or linear metres per hours or day	Minimum advance notice; sometimes parking reservation and signs
Mobile crane or jib	m² per days	Insurance; safety study and, where appropriate, traffic cut

Minor works (prior communication or responsible declaration) versus building licence

	Prior communication / Responsible declaration	Building licence
Type of work	Minor work without a technical project (Ley 38/1999)	Major work or with a technical project
When it can start	From submission, with the complete documentation	Only after express granting
Administrative silence	Does not apply: it is not an application that the Administration resolves	Negative: it is not granted by the passage of time (art. 11.4 RDLeg 7/2015)
Municipal control	Subsequent (inspection and verification)	Prior (technical report and resolution)
Cost	Processing tasa and ICIO	Processing tasa (higher) and ICIO
Risk	That the town hall requires a licence or halts it if it was not appropriate	Starting without it is an urban planning infringement

Official forms and where it is filed

Outdoor terrace: responsible declaration (private land, Modelo 60) or licence (public land, Modelo 62), example Seville Town Hall ↗
Temporary occupation of public roads for works (skip, scaffolding, move, crane), Electronic Headquarters of Madrid Town Hall ↗
Public road occupation licences (MOD 1012), example Guadalajara Town Hall ↗
Prior communication of minor works (code X014) and responsible declaration, example Zaragoza Town Hall ↗
Application for a vado licence and plaque, town hall's electronic headquarters (example Seville Tax Agency) ↗
Electronic headquarters of your town hall (general registry where any of these procedures are submitted)

Frequently asked questions

Do I need a licence to put a terrace on the pavement?

Yes. The terrace occupies the public domain, so it needs municipal authorisation (a licence or, in some municipalities and on private land for public use, a responsible declaration) and to pay the tasa. It must respect an accessible pedestrian route and have insurance. Managora processes it for you.

How long does a vado licence take?

It depends on your town hall's bylaw. As it affects the public domain, the silence is negative: it is not understood to be granted by the passage of time, you must wait for the resolution. Managora submits the application and follows up.

Can I start a minor work as soon as I submit the prior communication?

As a general rule, yes: the prior communication and the responsible declaration empower you to start the work from their submission with the complete documentation, without prejudice to subsequent control. If it is a major work, you need a prior licence.

What do I need to put a skip or scaffolding on the street?

A temporary public road occupation licence, submitted in advance, with a location plan, civil liability insurance and, often, a deposit. A tasa is paid for the metres and days occupied. Managora manages it for you.

How much does each licence cost?

The tasa is set by each town hall in its tax bylaw (per m² and period for terraces and occupations, annual for vados, and tasa plus ICIO for works). You can see the updated amount and what the Managora service costs on the procedure page.

What happens if I occupy the public road without authorisation?

It is an infringement: the town hall can order the removal, impose a penalty and claim damages. It is advisable to authorise and pay the tasa before installing anything. Managora takes care of leaving it in order.