uk27

Would love some advice from you right now!

Me and a mate have seen a business we would like to buy in Tenerife. Both of us have decided that we have had enough of the UK and want something better from life.

Raising the money between us shouldn't be a problem, and the current owner of the business advertises that he will stay on until the new owner feels comfortable on their own.

However the bit we are struggling with is the process, we feel like we don't know where to start. Can anyone describe how they went about buying a Spanish business from start to finish?

I would be extremely grateful for any help!

AliceB

The best advise anyone will give you today is - don't do it. It's a minefield which will go off in mini explosions throughout the entire process. Nobody will tell you the 'entire process' but you will be drip fed information at each stage which, for the most part will lead you down the wrong path, only to be told at the next stage what you should have done last time. If you want to have any money left in six months, avoid a "business in Spain".

agoreira

Tell me it's not a bar!

uk27

No, its a Water sports business.

Rosemary

As Concierge for the Spanish section of BE I would like to say hello and welcome.

BE is a very large expat website, so if you have problems finding your way around we have concierges who will try to direct you. The moderators for the Spanish forums are Mitzyboy and Fred James, moderators are there to ensure that the site runs smoothly within the rules of BE. Problems and complaints should always be addressed to a moderador who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are friendly and helpful with a wealth of knowledge of the issues of living in Spain. At the top of the page you will find a quirkily named thread called Free Beer which is full of important and useful information. Hope you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

mikelincs

OK, well firstly you need to see the books, and all the books, not just the ones they keep for official purposes. then you need to see the licences, can they be transferred? What you need is the advice of a good solicitor, not one suggested by the current owner or the agents. As has been said it's a minefield, and only go into it if you can afford to lose all the money you put into it, because, unfortunately that is the likeliest scenario. Apart from the money to buy the place, or is it a lease you are buying? you will need sufficient cash to pay your taxes, healthcare and food for several months as the business is unlikely to bring in enough during the winter, yes I know it's Tenerife, but there are still lulls. Can you speak Spanish, you will really need to be fluent, can you speak other European languages, a knowledge of German and Dutch would probably be a good idea as not everyone holidaying in Tenerife is English.

Dick Dasterdly

I would guess that the legal intricacies and licences alone would be very costly and a minefield and then you'd need to fork out some serious dough to cover your arse insurance wise also.

Best of British, you may need it.

steviedeluxe

Have a word with your gestor. Apparently, from October all new autonomos will have an introductory payment of just 50 euros a month compared with the normal 270. It may just be the best time to start in business in Spain...

stuboy

You are stevie ever the eternal optimist. A water sports business in Tenerife, there are dozens of them. Unless they are or intend to offer something amazing which Tenerife has not seen before then God help them. If water sports are their business then they could do a lot worse than start of in Newquay or a similar UK location. At least in Cornwall they'll understand the paperwork and the locals/visiitors.

pete_l

I don't think that running a business - even one that you have experience of running successfully in the UK (and especially one in a line of work you're unfamiliar with) will give you a "better life". You'll probably spend far more time and energy learning the ropes, trying (unsuccessfully) to stop your suppliers ripping you off, dealing with the rules, regulations, bureaucracy, finance, orders, language barrier, advertising, maintenance and any customers than you've ever had to spend working on your job in the UK - so there won't be any time left over to enjoy.

Then in a few months when you realise that the guy you bought the business from lied about its prospects and income - and disappeared the day after the money cleared his bank account and left you with a pile of bills from the last year, you'll be back in the UK - breathing a sigh of relief.

HBG

To start a business in Spain you will probably need a Gestor, preferably recommended at local level by other businessmen already operating there. He should be able to take care of all your affairs, from the start-up licences to the eventual tax payments etc. etc.

He will undoubtedly ask for money up front, in cash, before picking up the telephone to his many trusted friends - the town hall, the tax people and the police who are all involved in the business process in Spain. If you find a good one, you will then be left to run your business without a queue of dangerous people with clipboards at your door.

Domino

Doesn't anyone realise that running your own business isn't the same as being a 9-5 employee with no responsibilities. ??

It is hard work, keeping up the accounts, the legal and safety paperwork, covering for employee's that don't come in, getting the advertising out there or there will be no business, fronting open days etc etc

most running their own business will admit that they will be working for 80, 90 or 100 hours a week, taking out of the business less than the national minimum wage. And family life will be Zero, even living in Tenerife, as you will always be at work.

never be an employer when an employee you can be

steviedeluxe

You are right, but for many people there really is no choice, and at least by starting a business you have some control of your own destiny. But yes, it's not an easy option.

rspltd

Not sure why if they are running the business they might be autonomo. Surely you can't be autonomo in your own business?

Never forget the adage: How to make a small fortune in Spain - start with a big one!!

Fredbargate

Story of my life Stevie, I regularly found that after being an employee for around 18 months my ideas and those of my bosses were totally different and the relationships had to end.

Then I became self-employed and no matter what I did my boss would not dismiss me