Buy
Businesses in Spain
Aftercare
is all important where business purchase is concerned and you should
be sure that this will always be available. The vast majority of
purchasers will opt for a bar or catering business of some kind
- Pub - Café - Restaurant - Discotheque, etc……..Why?
1)
There is plenty of availability
All
the major tourist resorts and large towns will always have a good
selection of this type of business available for sale.
2)
It’s a tried and tested formula
British
owners have been successfully operating bars, pubs, catering businesses,
etc. in Spain for many years.
3)
Spanish language not absolutely essential
(Although
the more you can speak the easier and more interesting life becomes!).
Customers
will in the main be British tourists, British ex-pats residents
or English speaking. Why would someone who doesn’t speak
any English go into a British Bar?
4)
Experience
Many
purchasers are new to the catering business. It’s a business
that, in it’s simplest form, - ie serving drinks and light
snacks - requires little or no previous experience.
5)
Inexpensive
Most
Spanish resorts will have a selection of small Bar/Cafes available
for sale at prices that will fit most budgets.
6)
Viability
Most
tourists will spend a high percentage of their holiday money on
food and drinks. Also most ex-pat residents tend to be well heeled,
gregarious and will eat and drink outside of their homes much more
than in the UK, this of course is helped by the Spanish climate.
Profit
margins are good and overheads low.
Leasehold
or Freehold
Most
purchasers - including those with substantial budgets - would be
best advised to opt for one of the cheaper businesses (which almost
certainly will be leasehold) if this is a first venture in Spain.
Caution has always been a successful businessman’s watchword
- you can always trade-up at a later date.
As
in the UK, one can buy a Leasehold or a Freehold business.
Leasehold
Easy
to buy and easy to sell on later if required. Also relatively inexpensive.
Most Spanish leases are of 25 years duration. The rent agreed on
take-over can only be increased once a year equal to the rise in
the cost of living in Spain (as set by the Spanish Statistical
Bureau).
Normally
the price asked for the Lease includes the goodwill plus fixtures
and fittings. The rent is usually paid monthly in advance - often
direct into the Landlord’s bank account. When initially purchasing,
the buyer must pay 2 months rent in advance as a ‘returnable
deposit’ (known as fianza).
Most
Leases (although not all) will be on pre-printed Government forms,
which are easily obtained in Spain. The clauses in the Government
Lease are standard and set out the rights of both the tenant and
the landlord.
Almost
always, the Lease will contain reference to ‘participation’.
This means that the landlord can claim a percentage of the sale
price when the current owner sells the business. This is quite
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