Is 75000 eur enough for a flat and leasehold cafe
 

Hi

Is 75000 euros enough for a studio apartment and a cafebar lease in Spain? I found out you can't get a mortgage very easily in spain and if I sell my UK house, my share will be 75000 euros.
The thing is I need a leasehold business as well as a studio apartment as I need an income. You can't just sign on the dole in SPain like you can in the UK if you have no job. WHat can I do to make the move?

Re: Is 75000 eur enough for a flat and leasehold cafe
 

The cheapest studio apartment currently advertised for sale in my area (5km inland from the coast, East of Malaga, is priced at €115,000, and don't forget you would need to find 10% of the purchase price on top of that to pay the transfer tax, legal and notary fees (more like 12% in some areas). I think (sorry to say it) that property prices in areas within your budget would be in areas where a cafebar would attract very little trade.

Re: Is 75000 eur enough for a flat and leasehold cafe
 

Well can I get a mortgage then if I leave my job and move to spain with the intention of running a cafebar? I was told the banks there don't lend for cafebars so I would have to have cash. If I have 75000 euros cash, surely some bank will equal it so I have 150 000 euros. You also can not liquidte your asset (apartment) in spain I was told to raise cash once you buy one. This was told to me by a mortgage broker who deals with Spain.

Re: Is 75000 eur enough for a flat and leasehold cafe
 

This is all a bit vague.
Ask yourself these questions.

1.Do you know what is involved with opening and running a Cafe?
2. Do you know enough Spanish to go through the paperwork required to open said Cafe? (its a lot harder here than in the Uk)
3. So you have 75k, to buy a flat a business and wwhat will you live on?
4. Have you done a business plan to present to any lender?
5. Ask this question, if you worked in a bank and someone came in off the street and asked what you have. Would you lend them money?

Sorry to be harsh, but my wife and son ran a cafe in the UK for years. I was self-employed there and do some work here.
The systems are totally different here from the UK, for NI contributions in the UK for a self-employed person are a pittance; here you pay even if you don't earn a cent.
Taxes are higher here than in the UK. Licences here take ages (for example, a neighbour of ours purchased a unit in the local town to open an office for his business. He has been waiting 18 months for the licence (and he is Spanish).
Food and drink are even tougher; you have more health requirements to abide by, drink licences, etc. (We were going to do a cafe when we moved over, and the paperwork and cash required were silly).

To even think about answering the question, we would need to know the location you wanted to move to.
Do you even have the right to come to Spain and live and work?

The cafe near us closed as the owner tried to double the rent.
The people in there now paid €60,000 just for the lease and pay €1,500 a month in rent. They are open seven days a week and speak really good Spanish, so they have a good customer base.

Give some more info and then you might get a answer (maybe not one you want, but it will still be honest).

Re: Is 75000 eur enough for a flat and leasehold cafe
 

OP; I noticed that your questions on this forum are on both Riyadh and Spain, which seems a bit unusual given the different counties involved. To help clarify and provide relevant advice, I wanted to ask: do you hold an EU passport that would allow you to live and work in Spain?

Understanding your status in terms of residency or citizenship can make a significant difference when we answer your questions about living and working in Spain. Where in Spain are you wanting to move?

Please feel free to share more details so that we can offer a more "tailored" guidance.

Re: Is 75000 eur enough for a flat and leasehold cafe
 

Hi there.

Yes, I have dual nationality (British and Latvian) so I can go and live/work in any EU country.
1. I would be a beginner running a cafebar.I would have to learn how to cook the different meals for example.
2. I don't know any SPanish except Hola. I did french and German at school but not Spanish. However, I am quick at picking up languages.
3.I would live on the income generated by the leasehold cafebar. This is what I would hope to achieve anyway.
4.I haven't done any business plan yet because I am just thinking about things and I would have a house to sell in the UK first to get the capital to buy a flat and leasehold cafebar.
I have seen cafebars listed on some websites for around 20 000 euros leasehold. I don't know how good that means they are but this is the price I have seen in Malaga and Torremolinos for example.
I didn't know you have to get a licence to open a cafebar in Spain. Seems like a scam to me to make money by the government. How much does it cost to get a licence then?
I don't mind which area of spain but I have seen cafebars for sale in Torremolinos for 20k euros. I also like Valencia and Benidorm. Hope this helps. Yes, I have some questions on another thread about Riyadh because I am just about to start a job there for 12 months teaching English.

Re: Is 75000 eur enough for a flat and leasehold cafe
 

How does this work? They're renting the premises for 1.5k/mth but what is the 60k about?

As for the OP this is a tough ask and it just seems like that money will dissipate very quickly. Without a profitable business (and no financial buffer to give you time to get in the black) it's basically asking for trouble.

Also, as others have mentioned above, on what basis are you planning on moving to Spain now that after brexit a UK passport is not an EU-one and you have no right to live in Spain just because you want/intend to?

EDIT: sorry, didn't see your post before mine. A Latvian passport will do.

Re: Is 75000 eur enough for a flat and leasehold cafe
 

How much would that pay? I assume it would be tax-free too? :)

This might be a good way to build up a bigger budget before a move to Spain.

Re: Is 75000 eur enough for a flat and leasehold cafe
 

Many of these Cafe bars are for sale at a reasonable price simply because the current owners want to get rid, I lived in Spain pre Brexit for a few years and where we were, in an area that, at that time was very touristy, were changing hands every winter or even more often, it was very difficult for many of them to make a living because there were so many around, it may well be even worse now as in many of the areas that were tourist magnets Spanish people are actively trying to curb the numbers due, in the main, to the drunken behaviour of the visitors. If you are seriously looking then you must ensure you see their books, and have them looked at be an accountant.

Re: Is 75000 eur enough for a flat and leasehold cafe
 

Hi Atera. Not as much as you might think. 13000SAR per month which equates to about £2600 per month. After renting a room/studio apartment in Riyadh and travel to work, I will be left with just £2000 per month.

Re: Is 75000 eur enough for a flat and leasehold cafe
 

Oh I see! Yes, well that's what I thought too really, ie that there are a lot of cafebars all cramped in the same area that competition is difficult. Say, what do all you guys posting on my thread actually do in Spain yourselves then? Looks like I will have to just go to Riyadh then at the moment and do a 7:30 till 16:00 teaching job at the technical college. I am flying in 2 weeks and the employer has already bought me m y ticket.

But I would really like to run my own business in Spain and generate an income sometime. Running an English school would cost a lot I think.

Re: Is 75000 eur enough for a flat and leasehold cafe
 

That seems ludicrously low for the ME? You wouldn't be able to save much (if anything) on that I'd assume, if you're a teacher I'd hold out for a better job there so you can save a lot more money.

Plus if you're only going for a year, you'd presumably have to pay UK tax on at least some of that money too.

Re: Is 75000 eur enough for a flat and leasehold cafe
 

It's the going rate I am afraid for an ESL teacher. Even teachers at international schools only get around 15000-20 000 SAR which is £3000-£4000 per month so not a great deal more.
I think I will still go though because I intend to work on the side doing private teaching gigs and maybe earn double my salary. The ticket has already been sent to me so I would feel awful letting them down. Unless they can cancel the ticket and get their money back. I don't know. I won't be paying any UK income tax! I should be able to save around £1000 a month if I am careful/frugal.

Re: Is 75000 eur enough for a flat and leasehold cafe
 

Ah, I see, I thought you were a 'normal' teacher.

You're not currently resident in the UK?

Re: Is 75000 eur enough for a flat and leasehold cafe
 

I used to be a 'normal' Music teacher but now I am an ESL teacher LOL.
I am currently resident in the UK so yes, I have been paying tax but as soon as I go out to the ME, if I do, then I will let HMRC know and won't pay UK tax. BTW, as mentioned, 'normal' international teachers in Saudi get around £3000-£4000 per month I think although some may get more I don't know. I will be on £2600 so they aren't on a great deal more 'normal; teachers aren't. LOL