Buying a Business

As an EU citizen you have every right to start a business in Spain at any time. Foreigners from other countries need to first get a residence and a working permit together with the purchase of a business. For people who want to be financially independent, buying a business in Spain, is always an option. You want to move to Spain and to open your own business for your life. You don’t have to be rich to make your dream of moving abroad come true. The prices of businesses for sale in Spain vary from a few thousand Euros up to several million.

But consider this: Many succeed and countless others fail. Failure has a lot to do with the person, the wrong business concept, a disaster in money management, and last but not least with a lack of appropriate marketing. What kind of business do you want to buy and manage?

Maybe you know where you want to go and what kind of business you want to buy. Or you don’t know where to go, but you know perfectly well what type of business you want to buy. Or you don’t know where to go and neither what kind of business to buy. It can happen that in the region where you want to live and work you will not find the ideal business for the price you want to buy. Or you can find the business within your price range, but you don’t want to live in that area. In other words: the more flexible you are in choosing an area to live and the kind of business you want to buy, the better chances you have to find your future setting for life and work. More concretely: you have to go and live in the place where you find your business for the price you can afford, because your business is your pillar for life and your family. You must know this: some locations are very busy in the summer but painfully quiet in the winter. A bar in the back street can be more appropriate for your business, provided that people living in the near area get what they want from you. The main thing is that you must have a certain passing traffic to stand a chance, or your business will need to attract people by the exclusivity of the business itself.

Simple fact is: you need a certain amount of money to start your life, to buy a business, and to start working. For every economic level there are solutions. Obviously you will not find an apartment to rent for 500€ nor a business for 20.000€ in an area where the rich and famous holiday or live all year around. In other words: the amount of money you have will ultimately decide where you can live, buy a business, and start working. Also, be aware of the simple fact that: the bigger the business, the higher the expenses, and the more staff you need. Can you cope with that?

The times are gone where a bar keeper can simply open the door and make a huge amount of money. The restaurants with old muddy menu cards, unhealthy sloppily prepared meals, cheap old plastic furniture, and dirty kitchen (and WC’s) are not anymore those that make ends meet. Nowadays professionalism is a must for business people in the gastronomy industry, in order to attract guests all year round. So you have another challenge to face: are you professionally well prepared for running the business you want to buy? Do you have a realistic business plan? Do you have creative ideas about your marketing that suits to your business and to the people living there in the area or coming there for holidays?

Another issue is, you must examine the market to make sure there is a demand for the service (or the products) you will want to provide. Do it before you buy the business! It’s not really important if the actual owner is making good or excellent revenue. He can have great success, but you might fail. Or the business actually doesn’t work well at all, but you have skills that will allow you to turn it into a huge success. Everything will depend on you: on taking the correct decisions, your knowledge, your skills, your money management, and you as a person with a certain personality that will either support your business or hinder its success. Be aware of the hard work that will be required of you! Only buy what you can cope with. No life is without problems and no business is without challenges! Learn to face all kind of little and bigger critical incidents and other difficulties.

There are three options to get a business:

1. You rent commercial premises already running with a business, and you can start your business.
2. You buy a business freehold; that means you buy: the property, the license, the furniture, the equipment, and the stock.
3. You buy a business leasehold (= Traspaso). With a traspaso you have to pay rent for the premises. A traspaso price includes the license, the furniture, the equipment, and amount of material goods for sale. A traspaso price is determined also by the real revenue potential.

Before buying your business you have to decide about the business’ legal structure:

1. Empresa Individual: (= sole trader); the business in one person’s name.
2. Sociedad Civil: a partnership where several individuals form a business.
3. Sociedad Limitada: a limited company with registered shareholders.
4. Sociedad Anonima: a larger company with a large minimum trading capital.

There are some legal and administrative matters to consider when buying, starting, and running a business. Best is to get support form an expert, a lawyer or a “Gestoría”. The business broker selling the business will give you advice and instructions about what to do.

1. N.I.E. number (identification number for foreigners).
2. Registering your business with the town hall.
3. Application (Changing ownership) for the license (Licencia de Apertura).
4. Registering with the IVA office.
5. The Agencia Tributaria for your taxes.
6. Checking the paid bills and open bills, and any pending fines (“multas”).

If you are not fluent in Spanish and not experienced with these legal and administrative matters, you need professional support. In general, choose a professional agent or a business broker who is specialized in businesses who will give you advice and put you in contact with a lawyer or “Gestoría” if you don’t know where to get professional service.

Find a Business for sale in Spain.

Find a Business for sale in Barcelona.