Buying a business
Useful Information to help you succeed !
As we mentioned earlier, at Business 4 sale in Spain we “dot every I” and “cross every t” so please forgive the level of detail, it may seem a little longwinded however through experience we believe that the content of this page is or will become very relevant before during and after you purchase a business in Spain.
Once you have made the decision to move to Spain let the experts at Business 4 sale in Spain take care of the rest! We have extensive experience of “setting up” in new countries including Spain; our experiences and expertise can save you time and money. Trying to “go it alone” to save a “dollar” can very quickly become a “false economy”. Alone you could find the process complicated, frustrating and expensive, getting and more importantly taking right advice will remove the stress associated with such a big move and will ultimately lead to a smooth transition.
Who is eligible to buy a business in Spain?
Absolutely anyone! However it is important to emphasize that it is less complicated for EU citizens as they have similar rights as a Spanish citizen. Many Nationals of Non EU Countries own and operate businesses in Spain so while the process may take a little longer it can be done, Business 4 sale in Spain have all the knowhow and contacts to make the process go as smooth as possible (one of our directors is Lebanese). Once you arrive in Spain the first step is to apply for your residency certificate (NIE Number) this can be done quickly for EU Nationals, within 10-15 days. We recommend the use of specialist residency lawyers, there is a cost but they do all the “leg work” on your behalf, they ensure your documentation is in order, they have the contacts in the municipalities (town halls) and they are bi-lingual. For non EU Nationals we highly recommend the use of the residency lawyer. Business 4 sale in Spain can arrange this for you.
Selecting the Business that is right for you?
Whilst only YOU can decide what is right for you, we at Business 4 sale in Spain can assist you in selecting the best possible fit for your new venture in Spain, we have many types of businesses listed on our books, all viable propositions if the right owner is in place, (remember we mentioned detail) here’s some of the categories of business we represent; bars, cafés, café bars, music bars, bar restaurants’ restaurants, late night bars, after party bars, breakfast bars, nightclubs, fun pubs, adult entertainment clubs, supermarkets, convenience stores, variety stores, fashion stores, boutiques, souvenir shops, jewelers, hotels, hostels, guest houses, bed & breakfast, real estate companies, laundry businesses, hairdressing salons, beauty spas, day spas... and the list goes on. Maybe you are even more adventurous and you want a start up, we also have many empty units which can be developed from scratch, our legal team can secure your licenses for you ensuring that advice on EU regulations is followed for the particular business sector, offices, land, or any other business you wish to undertake, PROVIDING IT’S LEGAL Business for sale in Spain can help.
Once the initial selection is made.
Once you are sure of what you type of business you want, review our listings, keep in mind we only advertise around 50% of our stock, many owners wish the sale to be confidential therefore it is our duty to honor their request, make an inquiry, (ensure you communicate your budget) if you don’t see what your looking for, it’s unlikely, but if we don’t have something you will be interested in, remember our commitment WE WILL FIND IT. It’s now time to plan your trip to view your selected businesses; we can arrange local accommodation for you if you wish. Dependant on how many businesses you wish to see will determine the length of time we will set aside and dedicate to you. We will send you an itinerary for your time with us, We always begin with a meeting at our offices, this gives us an opportunity to meet you to get a better understanding of you, we also conduct a short “induction” which explains about the move, the lifestyle, the challenges, the opportunities…..basically a comprehensive overview of life in Spain. This also allows you to get to know us better, see our professional set up and get comfortable with our business. During your stay you will also be introduced to our in-house legal team, this will give you an opportunity to have the difficult questions answered by the “expert”.
We also advise you to see residential property on your trip, we will arrange this also if you wish, let us know the type of property you want (apartment, house, villa, by the sea, inland) and your budget and leave the rest to us.
The options available.
Freehold
this basically means everything, You are buying not only the “operating company” you are buying the building also. You then own the property outright and can sell it at any time. You can also create and sell a lease of your own to someone else or rent it out, maybe that’s your chosen “business”. If this is the route you decide to take we can assist with a mortgage secured on your property. We only work with reputable banks who will in most cases lend up to 70% of the value. This is a very good time to think about a Freehold, with prices falling at a rate which more than compensates for the change in currency values. Many freeholders who operate businesses themselves use the fact they don’t have rent to pay to make their business more competitive.
Leasehold
Buying a leasehold business in Spain is probably the easiest way of acquiring a business without the substantial outlay required for a freehold property, this is the most common method for most buyers, although whilst you pay less up front there is the ongoing rent which is part of the lease agreement.
The process is as follows:
Once you select the business which is right for you
Purchase process in brief
- You inform Business4saleinspain
- We negotiate the best possible price on your behalf
- Memorandum of understanding is signed and deposit is paid
- Our legal team completes the due diligence process
- New lease is signed and payment is made.
- You take ownership of your new business
Purchase process in a little more detail
An signed memorandum of understanding contract and a deposit is required to take the business off the market,(term to be agreed) this is normally 10% of the total price or €5,000 (whichever is greater) This is only refundable if the seller pulls out or there are problems identified with the business through the due diligence process, you will loose your deposit if you simply change your mind so PLEASE BE SURE before you move forward. The deposit is placed with Business4saleinspain who deposits in a secure client account until the transaction is complete; we do this to protect you should any issues arise then your deposit is returned by us. The remainder of the cost price is normally due at “closing” (signing of the new lease at the end of the option to purchase period) unless you have made special financing arrangements with the seller. (In some instances we can achieve this by negotiating a lump sum and pay-down) although generally this is only possible with higher value businesses. During the “understanding” period the legal team conducts their checks and balances to ensure that the business is legally sellable, or that there are no licensing issues and that the business is debt free. (It is always advisable to set up you own Spanish company our team can complete this for you. At the end of the “understanding” period a meeting is convened for all interested parties including the buyer, seller, legal and broker, at this meeting all contracts are signed, payment is made and keys are handed over.
Length of lease
In most cases a new lease will be issues for five years with at least one renewal period of the same timeframe. Our legal team will ensure that your rights are protected during the period of the lease including rent reviews.
After the Purchase is Complete
Throughout the term of the lease
You are normally required to pay a two month refundable deposit and the agreed rent on the agreed date of each month in advance, you must run the business in accordance with the terms and conditions of the lease and your business license, You can carry out any internal decoration and furniture changes without the permission of the freeholder however you may not carry out any structural work without his/her approval. All charges agreed within the lease such as electricity must be paid on time.
During your lease period you can sell on your lease to a “new owner” at the price you choose, in many instances the Freeholder will have a sell on clause within the lease a commission on the sale proceeds of 10%-20% is normal. Once again our legal team can advise you.
Things to consider
Our services are without doubt the best in the business, you will sleep easy knowing you have experts “holding your hand at every step, many are included in our “Additional Services” page some others are listed below, we do this for one reason only, so that you are successful. We fully recognize that you are moving to a new country with a different language, leaving family and friends behind and your wider support structure, you have a new home to set up and a new business to run... not easy alone... how do we know this... WE’VE BEEN THERE !!
During the negotiation process we will always include a support period from the previous owner included in the cost price, this means they will be there to help you during the first days (if you wish), they can pass on very valuable information such as;
- Supplier Introduction for your business.
- Buying Stock for your business.
- Where to purchase equipment
- Local wholesalers
- Importers
- Catering Suppliers
Check out our “Additional Services” page for more details.
Important
Please note, with reference to the properties and businesses advertised on this site. Every effort has been made to show accurate details and information relating to property descriptions and financial information, however, a great proportion of the details relating to the properties advertised are supplied to us by vendors and therefore we recommend that you use them as a guide only. If you should pursue a purchase of any of the properties then information will be verified and full searches carried out according to Spanish law. No information shown constitutes the basis for a purchase or sale contract.