Making the decision to buy a business can be a difficult on, we will endeavour to give you as much information and help as we possibly can. We will never, ever exert any kind of pressure on you to buy any kind of business, we would far rather you make up your own mind. After all it is you who is putting forward your hard earned money to invest in the business and not us. When we take a business on to our books we find out as much as we possibly can about the business, size, location, type and length of lease, rent, community charges, overheads, type of clientèle, competition and so on. We pass all this and more, on to you as the prospective buyer. Once you have made the decision to buy we assist you in every way possible to ensure that the purchase is conducted and concluded as smoothly and efficiently as possible. Remember it does not stop there. Even after purchasing we are available to help you with organising bank accounts, accountants, arranging gas and electric suppliers, assisting in finding you long term accommodation, schools and so on.
When dealing with the legal side of your purchase we use our lawyers/solicitors, who have well over twenty years experience of property law here on the Costa del Sol. They will guarantee that your purchase, whether freehold or leasehold, will be completed with the minimum of fuss and all licenses will be legally transferred into your name, giving you total peace of mind.
Having made the decision to buy you will need to follow these procedures. A deposit will need to be placed to reserve the business you choose. This is normally 10% of the agreed price. The deposit is held until all the relevant and necessary searches on the property have been carried out. At the same stage you will be required to sign a reservation agreement, which outlines the business to be purchased, the price, deposit paid and balance to be paid prior to completion. A completion date is agreed between you and the vendor, normally one month. At this stage the business is taken off the market and both buyer and seller are committed to proceed with the sale. Further checks will be carried out to ensure that the business is free from debt and the freeholder if different from the seller is contacted as part of the preparation of the new contract.
Business overheads vary, depending on the type and size of the business. The figures shown below are no more than a guide but are designed to give you a basic idea of the running costs of a typical bar/café in this part of Spain.
An Average Rent is €900 Per Month.
Electricity bills are paid Quarterly €240 Per Quarter.
Gas is supplied in bottles depending on which bottles are utilized are either €11 or €15.
This includes health care for the family and your pension €250 per month.
(Married couples pay €250 - Singles pay €250 each. ).
Theft, fire and public liability is included and is paid annually €40 Per Month.
This is payable if the terrace is on a public street and is levied by the local Town Hall. Charges vary, depending on the size of the terrace. If the terrace is on private land there may be no charge. Prices can range anywhere from €300 to €1000 every 6 Months.
This sum is payable for the upkeep and maintenance of the community which your business may belong to. Sometimes included in the rent. Again this depends on where the business is situated, but can vary from €50 - €100 per month.
These charges are usually very low and metered. €10 per month.
Some businesses are sold with stock included; others with stock as an additional charge. No matter which situation you are faced with you will have to buy stock at a very early stage. A typically sized bar for example will have between €300 and €400 of stock to ensure it runs smoothly, but this varies according to the size and turnover of the business.
Most businesses are sold on a leasehold basis, although some are available freehold, it is a legal requirement that 2 months rental deposit be paid at the time of purchase. This deposit is returned when and if the business is sold on. In addition you're first months rent, plus IVA (VAT) is also payable.
Legal Fees And Licences
The correct licenses and permits are vital to anyone setting up in business and we ensure that your new business is totally legal in every aspect. You will need to allow for approximately €3000 to cover these necessary additional costs. Local authorities charge different fees for transferring opening licenses from one owner to the next, so this sum of money may vary depending on where you buy your business and is unlikely to be more than the figure quoted. Shown below are the necessary licenses you are likely to need when living and working in Spain.
- NIE Number: This is your identity number that is issued to all foreigners residing in Spain. This is like your National Insurance Number, you cannot work in Spain without it.
- Fiscal Licence: This is a license for anyone with a taxable income in Spain.
- Opening Licence: This license is issued by the local Town Hall and is required by all businesses. This license authorizes you to trade.
- IVA Registration: This is the Spanish equivalent of VAT and works in a similar way to the UK.
- Social Security Registration: This entitles you and your family to use the Spanish National Heath Service and a percentage of the monies paid goes towards a pension fund once you have Spanish Residencia.