Who To Trust??.
A question most people ask themselves and it is a difficult one. We have been in the business for almost 22 years, have handled many transactions successfully and Millions of Pounds of Clients funds through our Banks in the UK and Spain and we are still here. We are also proud to be Fellows of the Federation of British Estate Agents in Spain who's members are required to adhere to a strict code of practice. We are not new to the business and have offices in both the UK and Spain. Be wary of So Called Agents who operate out of their cars a P.O.Box (Buzon) and/or a mobile phones, ask to see their offices and satisfied clients.
How long does it take to complete the purchase once we see something we like ?
Unlike the UK and providing we have done all the checks on a business, the transaction can be completed within the week of your arrival to take over. In all from viewing to take over, usually 1 month.
Is The Payment For The Lease Once Only?
Yes, with a legitimate lease you only pay for it once and in most cases have the right to sell the lease on or in many instances, sell your interest sometimes privately or others with the Freeholder receiving an agreed participation. If the lease is for 5 years then at the end of the 1st 5 year term you do not have to pay again for the lease, the lease should be renewable with the usual and normal rent review.
Do we need to have a Spanish Partner ?
People still ask me this question even though this practice ceased many years ago. Spain is a Full Member of the European Community and you have as many rights in Spain as a Spaniard, as does a Spaniard in the UK.
What is the Health System Like ?
As I tell everyone. Spain's Health System is First Class. I know, I've been in hospital there and am grateful to this day to Dr Carilla and his team at the Santa Elena Clinic for my life.
Will we have to keep accounts ?
We will introduce you to a qualified person who, for a reasonable monthly fee, will take care of your accounts for you and see that you do not pay any more tax than you have to. This will leave you free to get on with running the business and making money. Alternatively you may opt for the Modular System which requires little or no book keeping and is a system favoured by many in Spain.
Do many people fail ?
The direct answer to this question is Yes, people do fail and it usually is the people who fail and not the business. The business will fail if you have been sold a bad one in the first place but the main reasons for failure are: Inability to work hard, running a bar can sometimes be a 16 hour day. Some people come out with the idea that every day is a holiday, it is for the people you are serving but not for you. Some people think they can get away with not opening on time or not at all, late opening or staying in bed because they had a late night/early morning. Other reasons for failure are: Man runs off with other woman, Woman runs off with other Man, Man runs off with other Man, Woman runs off with other Woman, Drugs, Drink and Ill Health are other reasons for failure. Be under no illusions, running any business in a busy resort is a serious matter and many people who do it correctly succeed. All my clients who purchase a bar through me receive from a copy of 'Running A Successful Bar In Spain' which I wrote through my observations over the many years I have been in the business.
Is it correct that some agents actually own some of the bars they constantly sell ?
Yes there are Agents currently trading that do in fact own or have an interest in many bars/businesses that they sell many times over and over without telling the innocent purchaser of their involvement. We do not own or have any involvement in any bars or businesses whatsoever and act only as your Agent or Broker.
What profit can I expect to make in a bar in Spain ?
In my experience the popular figure is around 60-70% GP if you are a good produce buyer or buy in bulk. I do have example cash flows that I would be happy to let you have copies of.
Who pays you ?
In most cases our commission/fees are built in to the cost of the transaction and are the equivalent to the hourly rate a Solicitor in the UK would charge. We are not frightened to tell you this as we offer a comprehensive service to ensure you do not fall down a black hole. However, we do expect to be paid and do not like to see clients attempt to deal direct with the Seller in an effort to avoid paying our fees. A small percentage over the years have tried this but it is an Illegal act.
Is it easy to get a licence for a bar ?
I am happy to say that most bars we list come with a license that only needs transferring to you without all the fuss and bother publicans go through here in the UK.
Why are there so many bars for sale ?
We are led to believe that there are, for example 3,000 bars between Malaga and Gibraltar, so the list is not that large. However, a fair percentage of these bars we would not even want to show to our Clients.
Can we take out of Spain the money we brought in ?
As part of European Legislation, citizens of all Member States are allowed freedom of movement of funds. Therefore, it is quite easy these days for us to move funds around Europe.
I am on Special Medication in the UK, can I get the same in Spain ?
Any medication you are on in the UK can be prescribed and obtained in Spain. There are modern pharmacies in almost every street, many with English speaking pharmacists on hand to assist and advise you.
Can we take pets into Spain ?
There is no problem taking any domestic pets into Spain but you must consult your Vet so as the animal/s can have the required vaccinations etc. Your Vet will understand exactly what is required.
We have never run a bar before. How will we cope ?
Most of the best bars/cafes/restaurants are run by people who had no previous experience. Most people who are selling will spend some time training you or alternatively, we will see that you are not thrown in at the deep end. If you get on with people, are sociable and have a good sense of humour then, you are almost there. It is not difficult to learn.
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