Busy Bar for lease in Cabo Roig

Description

LEASEHOLD FOR SALE 171.000€ RENT 1.800€ PM
Great established bar in a superb location!
This bar is situated in the heart of the cabo roig strip. It has a large front terrace with lots of seating space. There is a stage as you walk in, perfect for any entertainment. It has two bathrooms, one of which is disabled.
There is a large bar area that joins to the kitchen.
WHAT IS A TRASPASO? This unfamiliar term is best described as the "buying price for a business lease". It is an up-front payment paid by a new tenant to a previous tenant (or his agent) for the goodwill of a business AND / OR the equipment, furnishings and decoration in a business property for rent/lease. A traspaso is a business investment. In some cases the new tenant buys both the goodwill and the equipment of a business.

BUYING THE GOODWILL (ONLY) OF A BUSINESS: When you buy the goodwill (only) of an ongoing business, the contract will specifically state that you are receiving the property fully furnished. Later you have the right to sell the goodwill of the business (not the equipment) under the same conditions to a third party at a price agreeable to you both, so the price you pay for a traspaso is a genuine investment, with the potential to sell at a profit.

BUYING THE LEASE OF A CLOSED BUSINESS PREMISES: In this case you are technically buying the equipment and have the right to sell that equipment. Obviously the equipment does not include floors, walls, ceilings, bar, doors, electrical or plumbing installations but does include kitchen equipment, display cabinets, pictures, memorabilia, air conditioning, cook wear, cutlery, crockery, tables and chairs. This contract should NOT say that the property is fully fitted because this implies that it should be returned in the same condition.

If you buy a closed business premises, and you turn it into a going concern, then, you can then sell this (equipment) traspaso together with the goodwill you have created, to another at a far greater price than you originally paid.

A traspaso like rent should be officially paid with an invoice and is subject to IVA at 21%. You can use that invoice to reclaim that IVA and to reduce the tax paid by your business.

OPENING LICENSE

In order to open and run a new business in Spain it is OBLIGATORY to have an opening license in your (or your company) name. With most municipalities in Spain (including Torrevieja), it is not permitted to open a business without having an opening license in place, however, because of the backlog in Orihuela Costa it is possible to open once renovation work has been completed and an opening license application has been made to the town hall, so if you want to open a shop or café-bar and you have done all this you could open the next day.

It then takes at least one month for the town hall inspectors to inspect that all work has been completed according to regulations and the plans submitted. Other types of businesses/uses must comply with a whole range of varying regulations, a café-bar is totally different to a pub, an engineer is essential.

Before signing any contract or paying any deposit it is highly advisable that you employ the services of a qualified engineer or architect. For a small fee of 150€, an engineer will check that the property or properties you are interested in, are fit for purpose. The engineer will advise you what work and paperwork you will need, to obtain an opening license. If all that is needed to obtain an opening license (rarely) is to change the name, then the cost will be 350€. Normally an electrical project and opening license project will cost about 1,600€ however most engineers will deduct the original 150€ from this price. Payments are subject to 21% IVA (reclaimable).

We are happy to give you the contact details of an English speaking, well experienced engineer who has specialised in dealing with the town halls in this area (Orihuela Costa, Torrevieja, Torre and Pilar del la Horadada).

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