Welcome to our frequently asked questions area.
Here you will find many answers to questions you may have on buying a commercial property in Spain. If you can't find an answer to your question here, please don't hesitate to contact us.
Q. How long does it take to complete the purchase once we see something we like?
- The legal process to buy a lease on a commercial property is quite quick - normally around two weeks In all from viewing to take over, usually 1 month. although it can happen sooner if the money is in place and all parties are keen to get things moving.
Q. Is The Payment For The Lease Once Only?
- Yes, you only pay for the lease once and have the right to sell the lease on in most cases. If the lease is for 5 years then at the end of the 1st 5 year term you do not have to pay again for the lease, the lease should be renewable with the usual rent review.
Q. What is a traspaso?
- A traspaso is an old Spanish term for a lease contract that includes the right of the leaseholder to sell the business on in the future. This is important as all the goodwill and trade you build up over the years can be sold for profit when you move on rather than just handing the keys back to the Landlord when you depart.
- With all traspasos/leases there is also a monthly rent due to the owner, varying from as low as 600 euros per month to 2000 euros plus.
Q. How long are the leases on bars and commercial property?
- Most leases are for a 5-year period although leases of 3 or 10 years can be found.
Q. How long will it take to find a bar or commercial property?
- We recommend setting aside 4-5 days if possible to allow time to familiarise yourself with the areas, look at a range of properties, make your choice and begin the legal process. It can be done in 2-3 days if required and you have the stamina!
Q. What kind of deposit is required when I find a bar or commercial property?
- Normally a reservation deposit of 10% will take the property off the market with the balance payable on completion.
Q. What happens when I pay a deposit for a bar or commercial property.
- Bars Spain always holds your deposit in the office until all the necessary checks have been carried out: ensuring the owner has the right to sell, there are no debts against the property and all licenses are in place.
- Only after we have been satisfied of this will the deposit be handed to the owner.
- We are always working to protect your interests.
Q. How much are the lawyer's fees when buying a commercial property or a bar?
- Lawyers fees when buying a bar or a commercial property in its most common leasehold form vary between 1500-3000 euros depending on the size of a property.
Q. What paperwork do I need to buy a commercial property or bar in Spain?
- It is essential to have an NIE number (similar to a National Insurance number in the UK) and a Spanish bank account. We can help you with both of these.
Q. Can I get finance for a commercial property or bar?
- Banks will not lend on leasehold properties, only on freehold transactions. Other options are personal loans in the UK or remortgaging a property.
Q. What is a Gestoria?
- A Gestoria is a cross between a solicitor, property conveyancer and accountant in the UK and will carry out all the necessary checks against the property so it is free of debt and has the correct licences in place before your deposit is handed over to the owner.
Q. How do I pay tax and social security?
- We can recommend an excellent range of Gestoria's who, for a reasonable monthly fee, will ensure you are compliant with all aspects of Spanish taxation and employment laws., and take care of your accounts – leaving you free to get on with running the business and making money!!
Q. Can I sell my bar or commercial property on in the future?
- Most commercial properties are taken on a lease (traspaso) basis that means they can be sold on in the future. It is common though for the Freeholder to be entitled to 10-20% of the declared value when sold.
Q. What is the declared value?
- When property is bought and sold in Spain not all of the monies paid are declared to the taxman. This is the normal procedure in Spain although it can take a little bit of getting used to. If you were to buy a property at 80,000 euros for example you could expect to declare only around 50,000 of this.
Q. This is my first business - do many people fail ?
- The direct answer to this question is Yes, people do fail and it usually is the people who fail and not the business.
- The main reasons for failure are: Inability to work hard, running a bar can sometimes be a 16 hour day. Some people come out with the idea that every day is a holiday, it is for the people you are serving but not for you.
- Some people think they can get away with not opening on time or not at all, late opening or staying in bed because they had a late night/early morning
- Be under no illusions, running any business in a busy resort is a serious matter but many people who do it correctly succeed.
Q. Is it correct that some agents actually own some of the bars they constantly sell ?
- Yes there are quite a few Agents currently trading that do in fact own or have an interest in many bars/businesses that they sell many times over and over without telling the innocent purchaser of their involvement. We do not own or have any involvement in any bars or businesses whatsoever and act only as your Agent or Broker.
Q. What profit can I expect to make in a bar in Spain ?
- In our experience the popular figure is around 60-70% GP if you are a good buyer.
Q. Is it easy to get a licence for a bar ?
- Most bars we list come with a license that only needs transferring to your name without all the fuss and bother we go through here in the UK.
Q. Can we take out of Spain the money we brought in ?
- As part of European Legislation, citizens of the 15 Member States are allowed freedom of movement of funds. Therefore, it is quite easy these days for us to move funds around Europe.
Q. Can I have karaoke and live entertainment in my bar?
- For these activities a music licence is required. Certain parts of the Costa del Sol are no longer issuing new music licences so it is important that the bar you choose already has one in place for these activities. Our Lawyer will check this for you.
Q. I am on Special Medication in the UK, can I get the same in Spain ?
- Any medication you are on in the UK can be prescribed and obtained in Spain. There are modern pharmacies in almost every street, many with English speaking pharmacists on hand to assist and advise you.
Q. Can you find me somewhere to live as well?
- Bars Spain also specialise in long-term rentals allowing you to settle into comfortable surroundings in your new country.