Buyers Guide

Starting Your Own Business in Spain

Leasehold + Freehold Businesses

By far the most popular choice, especially if new to the business, are leases. They are easy to buy and easy to sell on later if required. The term of the lease does vary as in the U.K., usually 5, 10, 15 and 20 year leases are available. In most cases the leases are renewable and this is something that our legal advisors discuss with the landlord and advise you accordingly. Once the monthly rent is agreed, it can only be increased once a year by inflation as set out in the Spanish law for the length of the lease. When the lease expires, this does not mean that you have to pay for another lease, it is merely a paper exercise with the landlord for him to issue you with a new one and this then enables the landlord to increase the rent up to a maximum of 20%, however your legal advisor will negotiate this with him on your behalf. In all our leases the price includes the goodwill plus fixtures and fittings. The rent is usually paid monthly in advance as well as 2 months rent as a returnable deposit.

The freehold is not as popular as the leasehold, mainly because of the expense, however the benefits are that there is no rent to pay, and as a freeholder, you could lease the property taking a one off payment and receive a monthly rent.

License & Legal Paperwork

You are more than welcome to sort these out yourselves, however, what we offer is a package where by a solicitor and ourselves will do all the donkey work (so to speak) for you. Therefore enabling you to concentrate on your business and also be assured that everything is done legally and correctly, the following is required:

1) N.I.E. NUMBER
2) FISCAL LICENSE
3) OPENING LICENSE
4) REGISTRAION FOR I.V.A.(V.A.T.)
5) APPLICATION FOR N.H.S
6) RESIDENCE PERMIT
7) CONSULAR INSPECTION
8) FOOD AND HANDLERS CERTIFICATE
9) SECURITY CERTIFICATE
10) LIAISON WITH REGIONAL JUNTA(COUNCIL)
11) LIAISON WITH GUARDIA CIVIL
12) SANITARY INSPECTION
13) TECHNICAL INSPECTION

Although it takes time for all this paperwork to be completed, you can open the business while waiting, as long as you have certain documents in place. All license applications are made by your solicitor and the charges for this are set out in the financial section.

Stock

All bars and catering businesses in Spain are FREE HOUSES. So you choose what breweries and suppliers you want to deal with. Beer coolers and fonts are supplied by the breweries and usually, so are glasses/umbrellas/drip mats/ and promotion products. You do not need to keep large amounts of stock as most wholesalers deliver daily, however you should allow yourself approximately £700 for your initial opening stock in an average size business.

Overheads

Compared to the U.K. they are much lower with profits running as high as 70% on drinks and usually higher on food, this is why our clients usually go into the pub/catering business. Most of our clients have never worked in this industry before, but it is much easier and less stressful than being a publican back in the U.K. After all, you have at least got an all year round beer garden and your own opening hours.

The buying procedure

Upon deciding on the bar of your choice you will have to pay a 10% deposit this is paid to the agent, this payment guarantees that the bar comes off the selling list and that the price will
not alter. These moneys are usually placed in a client account until the completion of the sale.
You will sign an option contract; this is usually 30 days but can be more or less with agreement
SpainBars deal only with certified lawyers

You will be introduced to a lawyer (you become their client and the lawyer is there to represent you Not the seller not the agent) they will check for any outstanding debts against the property and also check the licenses this will cost you 1% of the buying price. You can do it cheaper but you have no legal recourse if anything goes wrong.

Completion

When completion day arrives, everybody meets at the Public Notaries office, the lawyers, the landlord, outgoing lessee, agent and not forgetting yourselves, leases are signed, moneys and keys exchanged.