Relocation, Relocation, Relocation... Buying a Business in Spain
“The glorious predictability of the summer weather has been attracting refugees from northern Europe’s damp and clammy lands for decades,” so says the Lonely Planet Guide, describing the powerful allure of life in Spain. The Economist magazine recently ranked Spain’s quality of life as the third highest in the world, taking into account a range of factors including weather, culture and economy.
In the past many Britons took the life-changing decision of moving to Spain after retirement. As a result a burgeoning British ex-patriot community has grown up along the Spanish Costas and its myriad golf courses, enjoying the longest holiday of their lives.
Yet there is new relocation breed in Spain - one seeking to invest and take over existing businesses. They do so well before retirement age and have spotted the opportunity to make money as well as improve their quality of life.
And fulfilling your long cherished dreams of a making a viable living in the Spanish sun is a lot more straightforward than you might think. It just takes a creative mind, an eye for an untapped market and some working capital, according to George Lacey of Lacey and Co, a business broker with many years experience selling businesses in Spain.
“Buying a business in Spain is as easy as it is in the UK or US,” says Lacey. But, he cautions, it is a good idea to decide on your amount of working capital before you investigate further. “It is difficult to get financing on a leasehold or leased property, only freeholds or businesses where real property is included can be totally financed,” he says.
Lacey advises that buyers should only go to Spain when they’re in a position to actually buy a business. "A good property will go in a matter of months, maybe even less,” he warns.
Once you’ve found your place in the sun the next step is to "take some good legal advice from a Spanish lawyer, an Abogado." You will also need to enlist the services of a ‘Gestor’. A Gestor is a Spanish paperwork specialist, a go-between who liases with the relevant local authority and government departments to help you obtain the permits that you need to start running your new business. A Gestor’s fees will often be between £1,000 and £1,500, including the charges levied by the local authorities.
Unless you are a fluent Spanish speaker, you would be best advised to concentrate your efforts on the regions of Spain with the heaviest British tourist traffic and highest concentration of British ex-pat residents. The obvious areas are the Costas, the Balearics and the Canary Islands.
The tourism and service sectors are the most popular choices for Britons buying a business in Spain, with its 4000 km of beaches and long April to October summer season. Most business buyers relocating to Spain opt for a bar or catering business of some kind for obvious reasons. Bars and catering businesses are inexpensive, there is plenty of availability, and in its simplest form the catering industry requires little or no previous experience.
But Lacey warns that buyers changing their line of work should "take it slowly, slowly. If you have little prior experience don't expect success to be automatic."
Outlining potentially successful strategies, Lacey asks that buyers be "a little more creative in their approach" than their predecessors. He warns that the market in bars is "quite saturated and only succeeds if well run." Of course, a bar will always sell well to holidaymakers, particularly British ones, but that is "often reflected in the price."
Converting country farms into guesthouses and B&B's is seen by Lacey as an innovative and lucrative way forward. Property in the country is often much cheaper than land on the coast. With some work and investment such guesthouses can make money by organising themselves as mountain bike, hiking or horse-riding centres.
In terms of area, the Costa del Sol is always a favourite as it offers a good all year season. But the Murcia and Almeria regions are cheaper and just as sunny. An interesting location is the River Ebro, running through the north of the country, a great place for a fishing related business. Catfish weighing up to 100lbs have been known to be caught there.
Golf is another option. Courses often do great business as golfers stay on site for food and drink and hardly venture away, but as with the bars their profit potential is usually built into the asking price.
View businesses for sale in Spain
In the past many Britons took the life-changing decision of moving to Spain after retirement. As a result a burgeoning British ex-patriot community has grown up along the Spanish Costas and its myriad golf courses, enjoying the longest holiday of their lives.
Yet there is new relocation breed in Spain - one seeking to invest and take over existing businesses. They do so well before retirement age and have spotted the opportunity to make money as well as improve their quality of life.
And fulfilling your long cherished dreams of a making a viable living in the Spanish sun is a lot more straightforward than you might think. It just takes a creative mind, an eye for an untapped market and some working capital, according to George Lacey of Lacey and Co, a business broker with many years experience selling businesses in Spain.
“Buying a business in Spain is as easy as it is in the UK or US,” says Lacey. But, he cautions, it is a good idea to decide on your amount of working capital before you investigate further. “It is difficult to get financing on a leasehold or leased property, only freeholds or businesses where real property is included can be totally financed,” he says.
Lacey advises that buyers should only go to Spain when they’re in a position to actually buy a business. "A good property will go in a matter of months, maybe even less,” he warns.
Once you’ve found your place in the sun the next step is to "take some good legal advice from a Spanish lawyer, an Abogado." You will also need to enlist the services of a ‘Gestor’. A Gestor is a Spanish paperwork specialist, a go-between who liases with the relevant local authority and government departments to help you obtain the permits that you need to start running your new business. A Gestor’s fees will often be between £1,000 and £1,500, including the charges levied by the local authorities.
Unless you are a fluent Spanish speaker, you would be best advised to concentrate your efforts on the regions of Spain with the heaviest British tourist traffic and highest concentration of British ex-pat residents. The obvious areas are the Costas, the Balearics and the Canary Islands.
The tourism and service sectors are the most popular choices for Britons buying a business in Spain, with its 4000 km of beaches and long April to October summer season. Most business buyers relocating to Spain opt for a bar or catering business of some kind for obvious reasons. Bars and catering businesses are inexpensive, there is plenty of availability, and in its simplest form the catering industry requires little or no previous experience.
But Lacey warns that buyers changing their line of work should "take it slowly, slowly. If you have little prior experience don't expect success to be automatic."
Outlining potentially successful strategies, Lacey asks that buyers be "a little more creative in their approach" than their predecessors. He warns that the market in bars is "quite saturated and only succeeds if well run." Of course, a bar will always sell well to holidaymakers, particularly British ones, but that is "often reflected in the price."
Converting country farms into guesthouses and B&B's is seen by Lacey as an innovative and lucrative way forward. Property in the country is often much cheaper than land on the coast. With some work and investment such guesthouses can make money by organising themselves as mountain bike, hiking or horse-riding centres.
In terms of area, the Costa del Sol is always a favourite as it offers a good all year season. But the Murcia and Almeria regions are cheaper and just as sunny. An interesting location is the River Ebro, running through the north of the country, a great place for a fishing related business. Catfish weighing up to 100lbs have been known to be caught there.
Golf is another option. Courses often do great business as golfers stay on site for food and drink and hardly venture away, but as with the bars their profit potential is usually built into the asking price.
View businesses for sale in Spain
Spain At A Glance
Area: 504,784 sq km
Population: 40.5 million
Capital city: Madrid
Spain Checklist
Check out the tourism and service sectors - Spain is world famous for both Consider converting farms into guesthouses - an inexpensive way to get started Don't forget golf - golfers stay on site for food and drink Financing is easier for freeholds or when property is included Take local legal advice from a Spanish lawyer - an Abogado Enlist the services of a Gestor to help you gain the necessary permits Look at Costa del Sol, Murcia and Almeria - exciting regions attracting investment
Population: 40.5 million
Capital city: Madrid
Spain Checklist
Check out the tourism and service sectors - Spain is world famous for both Consider converting farms into guesthouses - an inexpensive way to get started Don't forget golf - golfers stay on site for food and drink Financing is easier for freeholds or when property is included Take local legal advice from a Spanish lawyer - an Abogado Enlist the services of a Gestor to help you gain the necessary permits Look at Costa del Sol, Murcia and Almeria - exciting regions attracting investment
Spain Resources
investinspain.org
A useful website set up by Spain's Ministry of Economy
murcia-inversiones.com
A regional guide to business in Murcia
ifa.es
A regional guide to Andalucia, including business links
Spanish businesses
Browse for a Spanish business for sale on BusinessesForSale.com’s Spanish site
A useful website set up by Spain's Ministry of Economy
murcia-inversiones.com
A regional guide to business in Murcia
ifa.es
A regional guide to Andalucia, including business links
Spanish businesses
Browse for a Spanish business for sale on BusinessesForSale.com’s Spanish site