Buying a Commercial Business

 

WHAT YOU SHOULD KNOW

When we add the Business to our Website we do an inventory of all equipment etc that is to be included in the Sale. This inventory then becomes part of the Contract. We have spoken to people that have been told by the Seller that all equipment is included. On the day of signing it was realized that no equipment, and especially Stock has been removed. We prevent this from happening by agreeing with the Seller when we sign up the business, and it is made clear on their Contract. In some cases we may hold back 10 % of the sale price until the day of completion when we have checked the Inventory just prior to take over and once we are satisfied with all of the checks the remaining funds are handed over.

When you have found your ideal business a small holding deposit will be handed to the seller to remove it from the Market. Deposit Contracts will be signed, one for the Buyer and one for the Seller. We then instruct our Solicitor to check out the Contracts. Once he is satisfied a further 10 % deposit will be paid, normally within 14 days. A completion date is then agreed. Most of the Businesses that we list are already pre-checked and we know all about them. It is far better to lose the chance to buy a business than to lose all your hard earned money. If you are purchasing a Business which involves Food & Drink, it is necessary to obtain a Spanish Food Hygiene Certificate. The Spanish system does not except English Certificates. The Health Inspector will visit your premises and explain what steps are needed for the Certificate

 

AFTER COMPLETION

Once everything is signed do not think you are on your own.  In addition to us being on hand to help you settle in, when you take over the business, in most cases the outgoing owners stay on to instruct the new owners at no charge for a given period so as you are familiar with how the business runs, where all the switches and plugs are etc, who are the suppliers and on what days they call.

We can help you organise your official opening party which usually takes place some time after you take over, giving you time to settle in to a system. These parties are always well attended by local traders, ex pats and the general public alike.

YOUR TAXES

Taxation in Spain is similar to most European Countries and you will need an Assesore to deal with your taxes on your behalf. . We will, of course, introduce you to a professional who will take care of your books and accounts which will free you to concentrate on the business and making money.

Your Fiscal Representative (Accountant) will register you for Taxes, Social Security. When you have your Business he will also Change the Name on the License at the Town Hall, Change Utility Bills, and any other legal paperwork etc, and a course prepare your Quarterly Accounts

 

Selling a Residential Property or Business

 

USEFUL INFORMATION FOR SELLERS ?

There is a lot of information for buyers of property but what about the Seller? 

 

Here are some useful tips when placing your property on the spanish property market.

 

• Deciding your selling price - Look at nearby properties for sale and check on their price.  Have they been on the market for a long time?  Is their price too high?  If so place your price accordingly.  Seek our advise we will be happy to give you our experienced opinion of what your property is worth.
• Try to be accommodating to viewers -  If possible leave a set of keys with us if you do not live at the property.  Many viewers are keen to view a property in which they are interested.  So be prepared to show someone around your villa at short notice if possible, else the buyer may go elsewhere, or go off the boil.
• Dogs - if you have dogs, if possible, try to make sure they are not at the property when a prospective purchaser views or keep them under control as not everyone is keen on animals. Try to keep your garden clear of souvenirs left by your animals!
• Presentation of your Property - If possible, try to have your house clean and tidy when a viewer arrives.  The initial impression is very important.  If you have a pool - a clean sparkling pool is always more desirable than a green one!
• Bills - Try to have all bills, deeds, receipts etc available for inspection.  Buyers will need to know the running costs associated with the house.

 

Current Market Trends

 

SPANISH BUSINESS PREMISES AND RESIDENTIAL PROPERTY STILL A GOOD INVESTMENT

Recent UK Media coverage has created some concern about a price 'crash' for would be property buyers in Spain.  As independent estate agents we see a much broader picture of the market and while some localised estate agents are complaining of a slow down, we have seen no change in the overall demand for property in Spain.  Instead there has been a busy period and some change in buying trends.

 

SO WHAT EXACTLY IS HAPPENING?

Unlike the UK some isolated areas of the costas have seen the 'mass production' of new properties, over supply has meant that suddenly the property market (in these isolated areas only) has become like the new and used car markets. No-one is going to pay more for an existing property in the same development area if they can get a new one to their specification off the production line, possibly on better finance terms and with latest kitchen style.

 

The result is that some overly optimistic novice investors have got their fingers burnt by wrongly assessing the potential of their chosen purchase, often failing to shop around in different areas of Spain and hence paying over the odds in the first place.  In the UK most buyers would get independent professionals to check all of this out for them and do some proper homework themselves.  This is why it is so important to use an estate agent here in Spain and we are happy to help you in all respects as you would expect in the UK.

 

SO WHAT SHOULD BUYERS DO?

Every house is different and there are no hard and fast rules, but we advise that the majority of the Spanish market is healthy after a steady boom period and is now levelling off slightly.  Don't buy without comparing! 

The offer price on any property should account for a possible future urbanisation charge.  Ask us about fully legal re-sale properties on established urbanisations.  Adopting sensible buying techniques should result in a sound medium to long term investment purchase in what is truly a great country to live in.