RELOCATION
a.C. |
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OVER 30 YEARS EXPERIENCE OF BUSINESS IN SPAIN
ONE OF THE FIRST COMMERCIAL AGENTS ON THE COAST .
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BUYING A BUSINESS IN SPAIN
1. The premises do not meet up to legal requirements required by the Town Hall and Health department. 2. Building has had extensions to the property with no planning permission. 3. Electricity not up to EU Standards. 4. Never applied for one. All this can be sorted out but can be very expensive and must be taken into account when buying a business. LEASEHOLD In Spain this is now called a ¨CESION¨ and there is no exact format required, the duration and terms of the lease depend on the original contract of the tenant selling the lease. On buying a lease the rent normally goes up a little on exchange of contracts. Leaseholds now are more like a normal rental contract with permission to sell on to another party written in the contract. Always have contracts explained to you fully in English before you sign. VALUE OF A BUSINESS Generally a leasehold business is valued on 3 to 4 years profit plus fixtures and fittings. Location must be taken into account as a Bar on Benidorm sea front would be valued more than a back street café in a village. FUNDING First decide how much you want to invest in a business, never invest all your money in a business as you will need to pay for opening licenses also accommodation as most businesses do not have living accommodation. As in any new venture you will want to change a few things in the business and if necessary, decorate and reform your new business to suit your tastes. Banks do not normally lend money to purchase a Leasehold business but will on a Freehold of up to 60% of the bank valuation of the property. DEPOSITS Once you have decided on a business or property and a price has been agreed, a 10% deposit is made and held until the agreed completion date, this deposit is not returnable should you change your mind. We will have had all checks done before this and everything will be made clear so you will be well informed before you part with any deposit. This is of course is returnable should the seller default in anyway or any legal problem occurs and the sale does not go though being no fault of the buyer. LANGUAGE PROBLEMS Initially you will have no problem opening a business not speaking Spanish in a holiday resort, but to run a successful business you need to learn as you limit yourself business wise to tourists and expats, its always a good idea to have a Spanish speaking member of staff. Inland businesses can be more difficult if you do not speak the language and you will need a Spanish speaking member of staff to help you. BUSINESS FAILURES . Businesses fail for a number of reasons and in my opinion the first being low on start up capital and the inability to work hard. As in any country opening a business is a risk, but if you work hard and take on a good business in a good location you will achieve GOOD results. Before buying a business:- 1. Always find out the daily takings, you need to take at least 400 euro’s a day averaged out over one year ( sometimes more if the rent is high) in a small business i.e. café bar. Of course it’s up to you and depends at lot on how hard you work, but this is the figure you need to make a reasonable living. 2. Location, location is always a must for some type of businesses, but sometimes inland businesses can work very well as they normally have a captive audience and thousands of ex pats live inland. ACCOMODATION. Most people rent when they first open a business in Spain preferring to use capital to expand and promote their business. The average cost of a rental is between 600 euros and 1000 euros a month and two months deposit is normally required
FOR HELP WITH FINDING ACCOMMODATION, DOCTORS, SCHOOLS ECT
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E-mail: Linda |