Buying a Bar in Spain
For many people living in the UK, the thought of buying and running a bar in Spain is a dream. The sunny weather, friendly people and quality of life make buying a bar in Spain an attractive proposition.
As with many things, finding the right bar for you is essential. Do you want a bar that is already successful (for which you will pay a premium), or do you want one that will enable you to stamp your mark on it and turn it into a success?
There are three primary options when taking on a bar. You can rent, lease or buy the freehold. Renting is obviously the lowest cost route to take, but it is very rare for an owner to rent a bar out.
The most common option is leasehold. You will generally pay an upfront amount to purchase the lease, and then a monthly rent. The lease will run for a number of years and can be renewed on expiry. Leases can be sold on, and in fact you can improve the value of the lease and later sell at a profit. The monthly rent can only be increased in line with inflation, except at renewal time, when the owner may make a bigger increase. If you sell the lease on, the freehold owner may also be entitled to some commission. Making sure the contract is fair is essential, and that is where a good solicitor will come in!
If you have the money, then buying a freehold is ideal. Should you later decide you want to stop running the bar, you can then sell a new lease, receiving an upfront amount and then monthly rental income.
Unlike the UK, where many pubs are tied to breweries, in Spain you are effectively running a freehouse, so you choose what drinks you sell and where you buy from. As in the UK, you can expect to get free promotional items such as glasses and mats from suppliers in return for being a loyal customer.
As you will probably realise, the profit margins are very high in Spain for drinks and food. With lower than UK overheads, and the Spanish lifestyle, many Brits have swapped their hectic 9-5 lifestyle for a more relaxed life running a bar in Spain.
If this is something that would interest you, feel free to give us a call or email us for some information on available bars in Spain.