Thinking of Buying a Business in Spain?

There are many types of business available for purchase in Spain. The most popular and easy to successfully run are Bars, Restaurants and Cafés. Many of the available commercial properties are already established businesses and can provide the purchaser with an immediate income. Others need re-branding, re-forming or redecorating and it is wise to budget correctly for these costs before moving ahead with any purchase.

Another important consideration when you are looking into buying a business in Spain is the financing of your purchase. It is possible to borrow from Spanish banks if you are looking to buy a freehold commercial property, but for leasehold purchases it is unlikely and you should ensure that you have enough money to cover your purchase. A popular option for raising capital to purchase a leasehold business has been to raise capital against equity in a home in the way of a mortgage, or release of capital from a property sale.

When purchasing a business in Spain, you will find that most are sold on a leasehold basis. This means that you will pay a lump sum for the lease. The lease can be anything from 5-25 years, although they can normally be renewed at the end of it. During the time that you are the leaseholder, you will pay an agreed amount of rent to the landlord. This rent can only increase by the rate of inflation every year, until the lease is due for renewal. During this time, you will also be responsible for all overheads for the business and your own personal social security payments.

If and when you decide to sell your business, you can then sell the leasehold for whatever the current market price will allow. You will normally have to offer the lease firstly to your landlord, provided that he pays the required price, if not you can market the leasehold for sale though an agent.

As well as requiring the initial payment for the business, you will also need to cover your legal fees, which will be about 1% of the purchase total and two months rent deposit for the landlord.

Running a business, such as a bar, in Spain can be enjoyable and it does offer a much better life in what is considered by many to be the best year-round climate in Europe. It is a fact that life in Spain is more laid back and easier than in the UK, however, setting up a new business requires hard work and long hours and many bars for sale on Costa del Sol require not only hard work to help them succeed, but considerable business acumen.

The main key to success is to ensure that you run your bar as a business and not a part-time hobby. If you are not afraid of putting in some hours, you are careful to strictly run it as a business and you are able build a good rapport with your customers, you would be on the road to success and enjoyment of your new life in Spain.

Buying a business in Spain should not be a stressful or complicated process, but it can be if you cut corners. It is imperative that you only make your purchase through an office based, legal estate agent and that you use the services of a lawyer. The agent and the lawyer will be looking out for your interests to ensure that everything is above board with the lease, licences and any other issues that need looking into. MPS Properties will not proceed with any business sale unless a lawyer is instructed – this is to protect your interests and our reputation.

This is just a brief guide, however, if you wish to obtain more detailed information, please click here to download your ‘MPS Properties Buyers Guide’.

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