Buying a business in Spain
| Choosing a Business | Overheads for a typical small business | Coping with Bureaucracy | The Buying Procedure | Aftercare and Advice |
CHOOSING A BUSINESS
When considering the purchase of a business in Spain , it is important to gain a clear view of the type of business you require and the best, commercially viable, location for this business.
Some of our clients approach us knowing exactly what type of business they are looking for, or wishing to start up. Others only have an idea and are looking initially to investigate the possibilities available to them. We are here to show you the possibilities, locations and to spend time with you, advising if necessary, whilst you streamline your ideas. If you wish, we will show you different types of businesses in different areas in order to help you make your final decision. We have no doubt that we can find you a business to suit your requirements and budget - you tell us what you want and we will find it. When deciding your budget you should always ensure that you have allowed a realistic amount for working capital. Although the majority of businesses we sell are going concerns, most purchasers like to make at least a few changes, will have stock to buy and may have wages to pay immediately. You may need time to establish yourself. Very importantly, there will be costs involved in relation to the legal side of living and running a business in Spain .
Freehold Businesses Buying a freehold business is similar to buying a freehold villa or apartment (see 'Buying a Property' section). The greatest benefit of a freehold is that there is no rent to pay and you also have the option of selling the leasehold at a later date.
Leasehold Business The current Spanish lease is called a cession but was formerly known as a traspaso . It can be bought and sold but has certain conditions. Lease durations can be for 5, 10, 15, etc years. Should you wish to sell the lease, you must give the landlord first refusal. When initially purchasing, the buyer must normally pay one month's rent in advance and two months' rent as a returnable deposit.
Many business transfer agents will tell you that there is no need to use a lawyer when purchasing a business in Spain , legally this is correct. However, because of the complexity of cesiones and trespasos , we advise all our clients to use a lawyer. Although this may add a little extra cost to your business purchase, it may, in the long run, prevent problems, pitfalls and provide peace of mind. It is important that you choose a lawyer who you can communicate with in your own language. We will advise if required.
| Choosing a Business | Overheads for a typical small business | Coping with Bureaucracy | The Buying Procedure | Aftercare and Advice |
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