If you are a commercial landlord or you are looking for premises for your new business in the Costa del Sol, Marbella Property Services can assist you find the perfect commercial property or tenant.

Leasehold
By far the most popular choice, especially for those who are new to business. Leases are easy to buy and easy to sell on later if required. Most leases are for 5 or 10 years with the possibility of renewing after this term. The monthly rent once agreed can only be increased by inflation which is set by the Spanish government each year. In most cases the lease includes goodwill and all fixtures and fittings. The rent is payable 1 month in advance and generally you will need to pay a 2 month returnable deposit, as this is required by law.

Buying a lease on a Bar in Spain is a cheaper option for acquiring a business without the requirement for the much higher capital outlay required to purchase a freehold. A lease in Spain is called a Traspaso which is in effect a payment to the vendor for either "good will" - Fixtures & Fittings - or a combination of all elements.

Note: Although a Traspaso is a well known term it no longer has any legal validity in Spain and you should be offered a proper lease. However a traspaso is often the only way to buy a small business or bar in Spain and is still widely used despite being not recognised. This is why a good independent lawyer is essential in order to check the legalities of such sales.

Purchase price
The price quoted is for a new lease at the terms stated within the lease document. This amount is normally paid in one lump sum payment upon signing over of the new lease. It is normal practice to secure the sale with the payment of a deposit. This deposit payment is normally 10% of the full price of the lease and is non-returnable unless the sale falls through because of the seller. At this point it is important that you are certain about your choice of purchase as if you change your mind, you will lose your deposit.

During the lease

You must pay the agreed rent on a monthly basis.

• You can run the business in accordance with the lease terms (i.e. as a bar or coffee bar).
• You can alter the theme of the bar, the decor, the furniture etc but you cannot, without the permission of the landlord, alter the structure of the premises.
• You will be responsible for the electricity, water, community charges etc
• Your landlord is responsible for external repairs and major structural work
• The rent will increase by the rate of inflation each year
• On renewal of the lease the rent will be increased (at the acknowledged annual rate of inflation or a fixed and pre-agreed percentage)

Selling the lease
At any point and at your discretion, you can sell the lease at your required price. It is normal practice in Spain to have to pay your landlord a commission on any sale. This commission can be anything from 0 to 10% so it is important that you are aware of this prior to signing the lease and that it is written into your lease document. A new buyer will be responsible for any costs involved in the sale.

Security requirements

• You may be required by the landlord to insure the property at your own cost.
  
• Most landlords require a security deposit of 2 months rent. This will be returned to you when you leave, providing the premises are returned to the landlord in good condition
  
• You will also need to pay your rent one month in advance

Disputes
Your lease is a legal contract and is governed by the Laws of Spain. In the event of a dispute with your landlord, either party can take legal action in the local Spanish court.
You have rights as a tenant and your landlord has rights to protect his property.

Freehold
An alternative to leasehold, more of a niche market due to the costs involved in buying a freehold, but suitable for those with the funds available or starting a "branded" franchise.

Rent
It was very unusual for bar owners or landlords to want to rent their business as opposed to selling the lease, however in the current climate we are seeing this become more common. As far as local shops are concerned many of the Spanish owners are happy to rent out their properties without selling a lease, so it can be possible to start a business with only a deposit (usually two to three months) in advance and one months rent in advance.

Before you commence your search for a Commercial Property

Renting or leasing commercial space is similar to renting a residential apartment or house but more complicated. You will need to consider the needs of customers and probably employees. Places of work may also need further infrastructure requirements like wheelchair access and WCs.

At Marbella Property Services we will help you define your needs, find appropriate commercial properties, and negotiate a lease that takes your best interests into account. We will also assist you with buying a commercial property if this is the route you want to take.

LICENSES & LEGAL
Marbella Property Services can provide a complete package for our clients whereby in conjunction with independent solicitors, we will manage all the legal work for you, leaving you to concentrate on building a successful new or existing business. You can rest assured that everything will be done correctly and legally in accordance with the laws of Spain.

Although it takes time for all the paperwork to be completed, you are allowed to open the business with certain documents in place which takes on average about 2 weeks. The price depends greatly on the business venture and if the property is freehold or leasehold, this can be discussed in more detail at the appropriate stage.

Overheads compared to the UK are much lower in Spain, the most profitable industries on the Costa del Sol being based on tourism and real estate. This is why many British buyers opt for this type of business.

If you are thinking about opening a bar, a restaurant, a shop or any other business where you don't necessarily need to start the company from zero it might be a good idea to buy an existing business.

The advantage of buying an existing business in Spain is that many licenses, work contracts; permits etc. are given directly to the company and doesn't expire just because you change the ownership of the business.

This can save the new owner a lot of time and resources not having to wait for the necessary licenses and contracts for employees. The prices can vary a lot from place to place and by looking at different options you will be able to compare prices, locations and quality between different establishments.

Important things to consider when buying a bar or catering premises in Spain:

Opening a bar and restaurant are the most popular business ventures in Spain, and there are a few key things to remember.

Location
If you want to serve to a tourist market then the coastal strips such as the Costa del Sol are perfect. When you find the right location on the coast you may also tap into the huge foreign resident market. Sea front bars are not always the best choice. They may be busy in the summer but can be quiet in the winter and unless you are a "destination venue" then you must have passing traffic

Licenses
Every bar in Spain must have a license to open. Make sure that your agent checks this. This is vital. If you buy a bar without a license [this happens a lot when you buy without an agent], you will almost certainly be closed down within a short space of time. The police are very strict on this and non-compliance can cost you everything. To stage live music in a bar in Spain you have to have a music license. These are rare and very difficult to obtain. The EEC regulations for such venues are strict and complex.

Costs
Other expenses you need to budget for as well as the purchase price are:
Legal Fees - check with your agent and lawyer
Rent and Deposit - normally 3 months in advance.
Stock - initial stock may be provided depending if you are buying a business with goodwill and fixtures or an empty property.