The premises: rent, transfer and deposit

The premises is usually the biggest cost and the longest contract you will sign. This is where most money is lost by rushing.

Before you sign anything

1. Ask the town hall whether your activity is allowed in that premises (planning use, smoke outlets, noise, accessibility). There are places where you can’t open a bar, for example.
2. Get a quote for the building work you will need to adapt it (accessible toilet, electrics, water, extraction).
3. Talk to a technician (architect or engineer) if the activity needs one: they will tell you if the premises works and how much the paperwork will cost.

Rent

• As a guide, rent should not be more than 10–15% of what you sell.
• Negotiate rent-free months while you do the building work. It is very common.
• Look for a contract long enough to recover your investment, but with a way out if it goes badly.
• Check who pays property tax, community fees and repairs.

Deposit

For business premises, Spanish tenancy law requires a deposit of 2 months’ rent. On top of that, the landlord can ask for extra guarantees: more months, a bank guarantee or a guarantor. All of that is money tied up. In Catalonia, the deposit is lodged with INCASÒL.

Business transfer (traspaso)

Buying a business that already works (with its machines and sometimes its customers) can save you building work and time. But always ask:

• Why are they selling? Ask to see what it really turns over (VAT returns, not what they tell you).
• Is the permit in order and can it be transferred to you?
• Are there debts with suppliers, the tax office or the landlord?
• Do the machines work and how long will they last?