Buying a Bar in Spain
 

Hi Everyone.

Okay, I will say that I am 100% positive that these questions will have been asked a million times before and I'm sure some people will have positive and negative experiences and I'm happy to listen to both sides of the argument :). Any help and advice would be greatfully received and thanks in advance :D

I'll give you a little background info - basically I'm 22 and in full time employment but don't really feel very fulfilled and feel I want to do something more (don't we all). I speak intermediate level Spanish, and managed to visit Spain 9 times last year for long weekends and holidays, etc... My partner of 18 months is also Spanish.

This year my parents finished paying off their mortgage on their house - a modest 2 up 2 down terrace in Preston. With excess cash to spend they are thinking about their future and asked me if they bought a bar in Spain would I run it for them (and they would continue to work in the UK) and I of course said if it was feasible and they are serious about it I wouldn't bat an eye lid. I first thought it was a joke, but have come to realise they are deadly serious about it and asked me to look into the logistics and the finance required and have said if they lose everything then they have tried - I adopt a more positive attitude and believe with the right location, staff and not falling into the common traps of newbies to Spain such as licensing issues, taking on debt and expecting it to be easy. I/we know it will be very hard work, the hours are long and success is NOT guaranteed!!!

So the actual questions - sorry for the long introduction!!!

1) My parents would prefer to buy a Freehold bar - how would one obtain finance for a say 160,000€/£130,000 bar? (Secured or Unsecured)

2) Would there be issues with the landlords living in the UK and leaving someone else to manage it?

3) Which areas in Spain are best? Magaluf seems a viable option and everytime I've been it's been bustling - but I've loved everywhere I've been to in Spain with maybe the exception of Salou

I'm struggling to think of anything else at the moment but if you have any other related comments that would be good too!!

Thanks in advance

Gareth

Re: Buying a Bar in Spain
 

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

Re: Buying a Bar in Spain
 

Sorry, but you need to read the other thread running at the moment.
Would never suggest to anyone they take on a bar out here - too much competition.
Have you never considered why the previous owners may be really wanting to sell up ??
Its hard work, its long hours, the profits are small. and dependent on where you intend going to - even Spain has seasons and on the CDS the maximum time you will get out of tourists is 6 out of 12months. So can you live when not getting any customers as it is unlikely the Spanish will frequent your nice bar.

sorry to be a party pooper, but there must be better things you can do ??

kind regards
Dom

Re: Buying a Bar in Spain
 

I somehow doubt you'll get many positive experiences! ;) I think most will tell you, if you have a decent job in UK, hang onto it. Running a bar involves a great deal of work for little money, at best, and you picked possibly the worst time ever to be thinking about setting up a business in Spain. The good news, is if you choose to ignore the advice and go ahead anyway, the choice of bars available will be endless, you'll have a lot to choose from.

Re: Buying a Bar in Spain
 

Read thru this rather long thread - It initially is about Tenerife, but you'll get the idea http://britishexpats.com/forum/showthread.php?t=732491

Jo xxx

Re: Buying a Bar in Spain
 

I have heard a lot of the "well we lost a shed load of money on a bar in Spain, but at least we tried" platitudes, recently.

Re: Buying a Bar in Spain
 

I had a bar...the best thing about it was that I was dipping my toe in the water and could hand it back before I took the decision to invest some real money in it.

Spain is a great place to live in and an awful place to do anything. The worst part of your plan is the initial bit about finance, save yourself the pain and suffering of a long drawn out road to ruin, buy a length of rope and form a noose you will suffer less with it.

Re: Buying a Bar in Spain
 

It also has to be said that anyone without bar management experience in any country shouldnt even contemplating running a bar in a foreign country

Maybe your parents should buy a bar in the UK first to give you some safe experience - it would be financially better for them and easier for you

Jo xxx

Re: Buying a Bar in Spain
 

Blackpool..Magaluf...invest in good heating and strong sun lamp, you'll never know the difference

Re: Buying a Bar in Spain
 

What jojojojojojojojojojojojojojojo said.........:D

Re: Buying a Bar in Spain
 

Take the €130k and just go spend it on a great one year holiday, you'll end up with nothing but you'll end up with nothing opening a bar so you may as well enjoy yourself.

Re: Buying a Bar in Spain
 

Forget the idea. Just take a trawl around any area here and see the closed bars and bars for sale. Stay a week or two and some will change ownership in that time. As has been said, think about why all the bars are for sale. Stick the money in a savings account, at least you will get something back.

Re: Buying a Bar in Spain
 

Even with the best intentions the bar will not happen.

If I understand your post correctly, then you are planning to pay the money that was paid monthly for the mortgage (now paid off) for a business loan on a freehold bar of 130k to 160k.

Which if I understand would not be a great monthly sum, as a 2up 2down in Preston would not have been expensive to by 20 odd years ago.

I read it that, the house will not be sold to finance the project, just what was the former mortgage payment money will be surplus to the family budget, and it seemed like a good idea to you to "invest" it in a bar in Spain.

There is no danger of you losing a lot, as I first thought, as you dont have a lot to invest.

And quite frankly it would be impossible to borrow that sort of money from and English or Spanish bank,

If I have read read it wrongly, let me know, but having the cash upfront, the project should be mothballed.

Re: Buying a Bar in Spain
 

No problem with you running a bar if the owner is in England - it's what I do. However that is the only problem you won't have...

Re: Buying a Bar in Spain
 

Hi Gaz,

How did you get on in the end????

I agree with many of the posters on here, Ive had pubs in Spain since 1985, the best way to make it work is to buy FREEHOLD, you dont even want to consider trespaso......I got my 1st Freehold in 1992, it was the best thing I ever did, when eventualy I stepped down from running it my self it has provided me with a solid rental income, if you check out my web page Im sure you will find some useful info, good luck!