Buying a business in Spain can be a complicated and expensive procedure; however,
with the right agent and the right advice, it can be made very simple.
Sol Commercials are the experts on the Costa del Sol when it comes to buying a business. We offer a professional, honest and reliable service.
Who can buy a business in Spain
Quite simply, anyone though it is always easier for EU citizens as they have the
same rights as a Spanish national. You must have available funds as Spanish banks
very rarely loan money for business purchases and you must have an N.I.E number
or residency certificate. What types of businesses are available?
You can always purchase empty premises and set up any kind of business but generally
there are all manner of established businesses available for sale such as bars,
cafes, restaurants, retail outlets, hairdressers, beauty salons, offices, shops
and many more. Freehold or leasehold?
Freehold
If you purchase a business freehold, it is exactly the same as buying a home in
the UK. You are buying the building, bricks and mortar. You then own the property
and can sell it at any time. You can also sell a lease of your own to someone else
or rent it out. In some cases it is possible to raise finance to purchase a freehold.
We have mortgage companies who will lend up to 70% providing you have a home in
the UK. Freeholds in Spain are rising in value each year by up to 40%.
Leasehold
Buying a leasehold bar in Spain is a good way of acquiring a business without the
massive outlay of a freehold and this is the preferred method for most buyers.
Purchase price
The price quoted is for a new lease at the terms stated in that lease. You will
normally pay this in one lump sum on signing over of the new lease. It is normal
practice to secure a sale in the first instance with a 10% deposit. This deposit
is non-returnable unless the sale falls through because of the seller. If you simply
change your mind, you will lose your deposit.
Length of lease
This will be clearly stated in all publicity advertising the business and will be
written into the lease agreement. The norm is 5, 10, 15 or 20 years. Sometimes an
endless lease is offered.
Renewing a lease
You have an automatic right to renewal of the lease providing you pay the rent on
time and keep within the terms of the lease. On renewing the lease you do not have
to pay another lump sum but your rent could increase by up to 20%. During the lease
Selling the lease
At any point you can sell the lease, at whatever price you want. You will normally
have to pay your landlord a commission on the sale of 10-20%. A new buyer will be
responsible for any legal costs involved in the sale.
Security issues
Disputes with your landlord
Your lease is a legal contract and is governed by Spanish law. If you have a disagreement
with your landlord, either party can take legal action in the local court. You have
rights as a tenant and your landlord has rights to protect his property.
How much does it cost to set up a business in Spain?
When you purchase a business through Sol Commercials, we always use a lawyer. This
is for your protection. The lawyer will check the licenses on the business as well
as checking for any outstanding debts. He will oversee and translate the lease for
you. He will also oversee the completion, making sure everyone gets paid the right
amounts. Your total legal fees will be around 2,700 euros. You will also need to
allow 3 months rent on your lease. 2 months is a security deposit, returned when
you leave, one month is your rent in advance.
The purchase procedure
At Sol Commercials, we have a tried and tested system of purchase. Once you have
found the right business:
- We negotiate the purchase price on your behalf
- Once your offer has been accepted, you pay a 10% deposit
- We then collect all the paperwork from the seller and introduce you to a lawyer
- We will help you open a bank account and arrange for you to register for your
NIE numbers with the lawyer.
- Contracts are signed and you have 30 days in which to pay the balance (this
can be varied by negotiation with the seller)
- The lawyer meanwhile begins to check the paperwork and obtain a new lease
for you
- During this 30 days, the seller withdraws the business from sale and cannot
sell to anyone else, nor increase the agreed price and terms
- On the set day of completion, you will meet with us, the seller, the landlord
and the lawyer. Contracts will be exchanged, money changes hands and you get the
keys to your new business
Once you have settled into your new business, we are still on hand to give you
as much help and advice as necessary.
Nightmare stories?
As with everything in life, there are stories of things going wrong and you will
probably have heard many about bars in Spain. We too have heard of people losing
all their money, buying an illegal bar, being closed down and many more. Not all
the stories you hear are true, however, all these problems can be avoided. It is
a proven fact that most of these problems arise through the agent not doing his
job correctly, not having a legal advisor or coming across a dishonest agent.
Sol Commercials are proud of our reputation for honesty and the thorough way
in which we do business. This ensures that our clients do not become the subject
of such horror stories. There is no reason why you should not be successful in your
new business.
We will be happy to supply you with references if you are still unsure. This
is something that no other agent will give you.
What about all the other things you have to think about?
Part of the service we offer is total settlement in Spain. We are always available
to help with bank accounts, schools, tax, accountants, social security, residential
rentals, connecting to services, suppliers and anything else that you need. Here
are a few points to consider;
Electricity and water
These will normally be connected and we can help you have the accounts changed into
your name. If they are not connected (if the business has been closed for some time),
we can help you establish a new account with the suppliers. Electricity in Spain
is 220v so all your UK electrical goods will work in Spain. All you do is purchase
Spanish two-pin plugs or plug adaptors. The water is safe to drink on the coast
but most people prefer to buy bottled water.
Gas
In most places there is no mains gas. Gas is supplied in bottles which are delivered
to your door on a regular basis. Gas bottles are approx. 12 euros each for a refill.
Telephone
If this is connected, we will help you have the customer name changed with Telefonica.
If you want a new line installed, we will help you contact Telefonica. We can also
put you in touch with a supplier of discount phone calls. This means you can call
the UK for as little as 3 cents a minute! Your UK telephone set will NOT work in
Spain so don't bother bringing it over.
Suppliers
All suppliers to your business will call to see you. Deliveries are made on a regular
basis and most suppliers speak English. This guide has a separate section on suppliers.
Most insist on cash on delivery but eventually you may be able to establish accounts
with them.
Accountants and Gestors
We will suggest an accountant for you. He/she will be happy to take care of your
income tax returns etc. He/she is a registered Gestor (advisor) and can help with
all legal/tax/financial matters.
Social Security
The lawyer who oversees the purchase of your business will apply for your social
security number, which is compulsory to work in Spain. It's a simple trip to the
Police station with your passport (and it's free). Your social security payments
are made on a monthly basis and can be paid at the bank or by standing order.
Schools
There are two types of school in the area and we can help you find both. The first
is the normal Spanish state schools to which you can send your children, free of
charge. The second is an international school. This is a private school and you
will have to pay for it each term.
Rented accommodation
We have many contacts in the area who supply rented apartments, houses and villas.
We will be happy to introduce you to them and they will take care of your requirements.
The minimum rent you should expect to pay is 700 euros per month for an apartment.
On taking up a property, you will need to put down two or three months rent in advance.
(One month is rent and the other two are security deposit which is returned when
you leave). All properties are taken on either 6 or 11 months contracts. We can
normally find accommodation close to your business.
Living in Spain ? an introduction
Banking
We usually suggest a bank account at Solbank. Mainly because the bank is specially
designed for foreign residents and all paperwork will be in English. We will introduce
you to the manager who will open an account for you. You do not need to deposit
any money to open the account. Staff in the bank speak perfect English and will
always be keen to help you. Banks are usually open 9.00am - 2.00pm and 9.00am ?
1.00pm on Saturdays. All major credit cards are accepted in Spain and there is no
shortage of cash machines.
Postal services
The Spanish postal service ?Correos' is normally quite efficient with international
post. Post boxes are yellow with a post horn symbol. Postage stamps can be purchased
from post offices or tobacconists. In areas where there is a large English community,
there are Royal Mail services. This means that your mail is flown to the UK the
next day then posted through the Royal Mail. It is slightly more expensive than
the Spanish service but quicker and more secure.
Shopping
Spain is a shopper's paradise and wherever you go you will find bargains. The leather
in Spain is especially cheap as are ceramic goods. You will find all the designer
shops in most resorts and no shortage of bargain shops. Most shops will understand
English but you will soon become acquainted with the Spanish names for shops. Some
shops on the coast even accept Sterling as well as euros.
English products
There are many stores in Spain that now stock a range of English products, so there
is very little that you should miss about your home country. Good old favourites
that used to be hard to find such as marmite, breakfast cereals, English biscuits
etc are now commonplace. Iceland the big frozen food chain now has ?Islandia' stores
all over Spain where you can buy lots of English goods.
So what is it really like living in Spain?
Generally, life is slower in Spain than in the UK. Things certainly do not happen
overnight and 'yes' the ?Mañana syndrome' is true. Everything is done tomorrow.
The Spanish work hard but also play hard. They enjoy life to the full and every
moment of leisure is spent wisely. You too must fit into this lifestyle. Life in
Spain, especially if you are going to be working, is not an extended holiday. There
will be times when you will suffer with the intense heat. Your diet will change
for the better. Diet in Spain is based around fresh foods, especially fruit and
it's so cheap. On most days you can rise and guarantee the weather is going to be
fine. Rain is rare but when it rains, it rains!
Because of the language and culture differences, things do take longer
in Spain and official procedures are more complex. With the appointment of a good
gestor you shouldn't have much trouble. Crime is very low (apart from the obvious
opportunists that target the holiday makers) and the police have a great respect
for foreigners, providing you give them the same.
One thing you will not be short of when you come to live in Spain is visitors.
Your home will be constantly inundated with friends and relatives looking for a
cheap holiday. Try not to let this interfere with your business.
You will probably want to keep in touch with the UK and this shouldn't be a problem.
Telephone calls are cheap as is internet connection for emails. Flights back are
also bargain priced if you know where to look.
Sol Commercials
is the leading commercial real estate agency in the Costa del Sol, Spain. Our latest
listings & reduced businesses are marked on the website and placed on the home page.
We maintain our own website which ensures it is always kept 100% up to date.
We offer a complete service, from helping you find accommodation & car hire for
your inspection trip, long term rental accommodation for when you come to live in
Spain, advice on purchasing a property, schools, NIE registration, residency, social
security setup and everything else to enable you to make the move to Spain as easy
and stress free as possible.
