| For many years
foreigners have been relocating to Spain and buying a bar,
especially on the Costas, all with varying degrees of success.
Some succeed and countless others fail. Buying a bar in Spain is
not as simple as it may first appear and the pitfalls are
numerous. There are many legalities that have to be taken care
of and you must be aware of the hard work that will be required
of you. The first thing you will need is a good agent on your
side. Make sure you choose a professional agent who specialises
in commercials; not an ex-bar owner who failed in their own bar
so have turned to selling bars for a living. They may have
experience in running a bar but may not be experienced enough in
the legalities or business practices.
To buy a bar in Spain, the choice of bars available
varies considerably from little back street watering holes to
full music venues and quality restaurants. The prices vary too
from a few thousand pounds up to millions.
If you choose the right agent
who should give you clear and honest advice, providing you
purchase in the right area, you stand a good chance of making a
good living. Do not however, think that running a bar in Spain
is going to be an extended holiday! Be prepared for long hours
and lots of little problems - all of which can be solved quite
simply and most can be prepared for well in advance.
When choosing an agent, ask
the following questions:
1. How long have you been selling commercials ? Not how long
have you lived in Spain !
2. Do you have an office ? Some agents work from home and you
may have difficulty tracing them if it goes wrong.
3. How much commission are you putting on top of the NETT
selling price ?
4. Ask other bar owners about the agent and ask about their
after-sales service.
By no means is this page
intended to be a full guide; the idea is that we give you a
little insight into the way things work in Spain and things to
be aware of.
Important things to consider
when buying a bar in Spain:
Location
If you intend to serve to a tourist market then the coastal
strips such as the Costa del Sol are perfect. If 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. Back street bars are often the locals for residents,
providing that you can give them what they want. The main thing
is that you must have passing traffic to stand a chance. There
are too many bars in Spain for people to simply go round looking
for you [unless you are offering something unique].
Size
The bigger the bar, the bigger the expenses, the more staff you
need. Only buy what you can cope with. You may be advised to buy
small to start with then maybe move on later to a bigger bar.
Budget
Set your budget and stick to it. If you buy a bar in Spain for
£30,000, make sure you have at least £10,000 more for the first
few months. Don't over commit yourself or you will fail.
Licences
Every bar in Spain must have a licence to open. Make sure that
your agent checks this. This is vital. If you buy a bar without
a licence [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 licence. These are rare and very difficult
to obtain. The EEC regulations for such venues are strict and
complex.
Costs
On top of your purchase price you will have other expenses;
Your legal fees - check the amount
Rent in advance - normally 3 months
Stock - Initial stock may be included but needs topping up
Staff
You will normally not have any problem staffing your bar in
Spain, especially if you need seasonal staff. Be careful though;
if you employ staff on a cash basis you stand the chance of
being prosecuted ! Talk to your Gestor (accountant) about
contracts.
Purchase process |
