Bars For Sale in Tenerife - Business For Sale in Tenerife
TEL: 0034 699 599 097 - WWW.TENERIFEBUSINESSSALES.COM
Bars For Sale in Tenerife - Business For Sale in Tenerife
TEL: 0034 699 599 097 - WWW.TENERIFEBUSINESSSALES.COM
This is most commonly known in Tenerife as buying a ‘trespaso’. In these cases you are buying the ¨Goodwill¨ of the business or bar for sale as well as fixtures, fittings and equipment from the existing tenant. The Landlord obviously owns the building, and he prepares the rental contract. The average lease is for 5 years and is renewable. The rent for this period is fixed and can be only increased in line with ‘cost of living’ index as published by the Spanish government each year. Your landlord can only terminate the lease if you fail to pay your rent and this has to be done through the courts.
There are a number of Freeholds always available on the market for sale in Tenerife. These usually range from 150,000 Euros up to millions of Euros. Because you are buying in effect bricks and mortar, Spanish banks will offer lending facilities for such a venture, subject to a deposit of usually 40%, as an example.
Yes you can, although the opportunity very rarely becomes available. In cases where it does, a large but refundable deposit is payable to the landlord. The advantage of renting a business in Tenerife is it doesn´t tie up a lot of capital, however the downside is that after a number of years trading you have in effect nothing to sell.
No not as such. However we strongly advise you employ the services of a Gestor. All business transfers in general are handled by Gestors, who act on your behalf as a legal representative and accountant. We work closely with some of the best qualified professional people in Tenerife. As a guide you should budget around 1,500 Euros for a normal business transfer. These fees are paid directly to your Gestor.
First of all, don´t worry! Your Gestor will deal with the Town Hall and Police and ensure that all paperwork is either in place or has been applied for. All businesses in Tenerife must have an opening licence (Apertura) in order to start trading or must have applied for one. In addition if you are running a bar or restaurant it must have a (Turismo) license and in some cases a ‘music license’ may also be required. On the personal side, your Gestor will organise an NIE number for you, register your name at the Town Hall and prepare papers for the Tax Office.
All Landlords demand the first month’s rent on the day of completion. In addition the contract will state that the Landlord will retain a returnable deposit, which is usually the equivalent to three month’s rent, although the amount varies between different Landlords. Insurance cover for your bar is a legal requirement, and as an example should cost in the region of 400 Euros a year.
Well the quick answer to this is that Taxation in general is nowhere near as harsh or unfair as the U.K. The most popular for an average size business is the Modular System. With this you pay a fixed amount each month, without having to keep accounts. The other option is similar to the P.A.Y.E system where by the more money you earn, the more tax you pay. Needless to say for average size Bars, Restaurants and Businesses in general the Modular system proves the most benificial.
The majority of banks in Tenerife have English speaking staff, making the process of opening an account that much easier. A passport and NIE number is all that is required and the process takes no more than 10 minutes. Your account is activated immediately along with online banking facilities. A banker's card and cheque book are usually available for collection from the branch within a week. We will introduce you to a recommended bank, if you so require.
This could go on forever! We know what you are going through….. we have been there ourselves. It is impossible to cover everything you want to ask in this section so do feel free to ask anything regarding either the move itself; the ongoing implications or specific advice on a particular business. That is why we are here, it is not a case of us just selling a business, it is about us finding the right business for YOU.
