Britannia Estates are a well established real estate company specialising in the sale of leasehold and freehold bars, restaurants, shops, offices and many other types of commercial property.
We offer a large portfolio varying in style, type and price to suit your requirements. Our unrivalled years of experience are your passport to finding the property of your dreams.
We provide a personal service, with individual attention, to help you through each stage of the property purchase, including full legal and financial advice. You will be given unlimited help with banking, schooling, employment, social life, etc, without obligation and at absolutely no cost to yourselves.
SPANISH PROPERTY VIEWING VISIT
Having decided that you are in a position to purchase, your next step is to join us on a tailor-made inspection visit. Upon arrival in Spain you will greeted at Malaga Airport and transferred to your accommodation. During your stay there will be ample opportunity to view the range of properties that we have especially selected for you, suited to your requirements.
PURCHASING METHODS
There are two main ways of purchasing a business in Spain – freehold or leasehold:
Freehold
This is the same as in the UK, where land bricks and mortar are purchased.
Lease with the Right to Sell On
This is normally for a period of 5 to 25 years, fixtures and fittings are usually included. You can sell your lease at any time to a third party at whatever price. The lease can usually be renewed at the end of the term. If you sell the lease on, the term normally reverts back to the original number of years. This is the most popular method of purchase as you have an asset to sell and it is possible to make a profit on the original amount paid, especially if your business grows.
PURCHASING PROCEDURES
When you have found the business of your choice, the following purchasing procedures would be necessary. You would need to place a holding deposit of around £1,000 to secure your purchase and remove it from the market. If you are planning to purchase on your inspection visit, then we recommend that you bring sufficient funds with you in Euros or Sterling.
The balance of 10% deposit will be required within 7 days (less the holding deposit). This would then be held until relevant searches have been carried out. The outstanding balance is payable on completion.
For the points below, you will need to allow approximately £1,000 to cover the legal costs. Normally this covers most types of business, but special requirements for a disco or nightclub could add extra to this amount. These costs are in addition to the price of the business and are un-avoidable to make yourself and the business fully legal.
It is vital that all searches and legalities are carried out by our recommended and fully qualified professionals who have many years experience, and are well acquainted with the area. We will ensure that every step of the transaction is conducted to the highest standard. The solicitors are well respected, fully reputable and offer the most professional service to you.
At this stage, it is necessary for the buyer and seller to sign a Reservation Agreement, outlining the details of sale. This prevents the seller from dealing with any other buyer and commits both parties to the agreement. You will be asked for a completion date; in the average case this is about 30 days. The completion date is your decision. The minimum period required for a lease transaction is 10 days, for a freehold transaction around 30 days.
Further checks are carried out to establish that the business is free of embargoes and debts. Everything is checked thoroughly with nothing left to chance.
The new contract is checked by your solicitor to ensure all is in order and all legalities comply with the law.
Should you return to the UK at this stage, we would stay in touch and be assisting you in finding long-term accommodation ready for your occupation. When you return to Spain you would need to complete your transaction by the agreed date and sign the new contract, the balance having previously transferred.
We will help you to settle into your new venture and home, and accompany you when necessary to finalise legalities and generally assist you in the future.
We pride ourselves on our after sales service.
Necessities after your transaction is completed:
1. NIE NUMBER.
You need to obtain this identity number for anyone over the age of 18 years who wishes to reside and work in Spain.
2. FISCAL LICENSE AND NUMBER.
A compulsory license that registers you with the Spanish Tax Office. You will then be given a tax number.
3.OPENING LICENSE.
This is given by the Town Hall to ensure that the premises meet the Building, Safety and Hygiene Regulations. If the business has a current license then it is necessary for us to transfer it to your name.
4.IVA REGISTRATION.
The same as VAT in the UK. It is necessary to register.
5.SOCIAL SECURITY REGISTRATION.
To include the whole family into the State Health Scheme, which is excellent in Spain.
6.FOOD HANDLING CERTIFICATE. Both owners and members of staff are required to obtain this card, even if you have a current UK card and even if only drinks are being sold. This takes the form of a seminar with automatic pass.
7.RESIDENTS PERMIT.
We will arrange this for you.
8.MEDICAL TREATMENT AND CARE.
We will register the whole family for the State Health Scheme. This is now excellent with Local Health Centres and major hospitals having the most modern facilities and excellent staff. You will be allocated a doctor initially at the Local Health Centre, then make your appointment just as in the UK. Translators are usually on hand to help with the language. Private medical plans are available and BUPA contributions can be transferred.
NOTE: All of these items are arranged by your solicitor.
TRADING STOCK
Some businesses for sale will have an amount of stock to transfer to the new owners, but you will inevitably require some extra. All businesses that we offer for sale are independent and you decide which suppliers to deal with, however we are able to assist you on this matter should you wish.
You do not need to keep large stocks as deliveries are frequent and you can make use of the nearby cash-and-carry and wholesalers.
The beer companies provide equipment, such as beer coolers, free. Most suppliers speak English. You will need to allow approximately £1,000 for your initial stock in an average sized business.
DEPOSITS FOR BUSINESS AND HOME
When renting or leasing a business in Spain, it is a legal necessity to pay, in advance, the following rents and deposits:
RENTS
You must pay the first month's rent, plus IVA Tax (VAT) at 16% in advance, which goes to the freeholder (remembering of course that the IVA Tax is re-claimable). In addition to this you have to pay the equivalent of two months rent, excluding IVA Tax, which is held in bond. This amount is refundable should you terminate your rental or sell the lease. Your rent is then paid monthly to the freeholder.
RENTING YOUR HOME
If you rent a house or an apartment, you will need to pay the first month's rent in advance plus two month's deposit, which is refundable at the end of your renting period.
FINDING ACCOMMODATION
We can assist clients purchasing through us to find long-term accommodation, usually clients will rent for the first year.
We will monitor the situation until you have successfully found your new home. This service is unique to our clients and is at no cost to you whatsoever.
Furnished properties are usually of a high standard and normally include a fitted kitchen, bed linen, cutlery, crockery, etc. Most have both a private or communal pool and other facilities.
Rents are paid monthly and it is normal for the owner to ask for the first month's rent in advance, plus one month's returnable deposit, generally your electricity is extra.
Typical Costs for Long-Term Rentals One bedroom furnished apartment £450 per month, Two bedroom furnished apartment £600 per month, Three bedroom furnished apartment £700 per month.
Larger detached townhouses and villas are also available, which do vary in price and size. However, the accommodation listed above is more usual for clients just arriving in Spain.
Please note that there is no Council Tax or Local Tax paid on rented accommodation and Community Charge is usually included in the rent.
Most rental contracts will be for a one year period with the option to renew at the end of this period. Many urbanisations will be on a bus route to the centre and special school buses operate on larger estates.
Most properties will have community television and satellite systems installed. Pets are normally welcome.
TAXATION
Personal taxation in Spain is far less than in the UK. During the first two years, personal tax will be small or even non-existent with subsequent periods being very advantageous.
IVA, or VAT as it is called in the UK, is charged on goods at either 16% or 7% depending on the product. IVA is paid every three months but any IVA paid can be rebated. This is much the same as in the UK.
We can advise fully on taxation, which when set up correctly is very easy to cope with, especially with the assistance of an accountant who will take care of any paperwork. The tax year runs from 1 January to 31 December.
SCHOOLS
This is obviously an important aspect that all parents want to be sure about when deciding to move abroad. You have a choice of either a non-fee paying Spanish state school or a private fee-paying day school, depending on your child's age, aptitude and circumstances. You will need last school report, doctor's medical records, vaccination record and full birth certificates. Our office will assist you in this matter.
If you require any more information about Buying a Business in Spain, please contact us, we are here to help!
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