Important Notice & Disclaimer
All property details shown on this site have been supplied directly from the vendors or agents acting on behalf of vendors. We therefore do not guarantee the exact accuracy or take responsibility for any discrepancies or inaccuracies that may be shown. We advise due diligence is carried out on any property prior to a Freehold or Leasehold purchase or Rental.
Commercial Property & Businesses on the Costa del Sol
Here are just a few points and some general information on buying businesses, commercial property and leases on the Costa del Sol. We at KS Costa Estates take you and your finances very seriously. We are pleased to answer any specific questions you have so please contact us or we can meet you here on the Costa del Sol where we can discuss the buying procedure in person.
If it would be of help, we can introduce you to an independent legal business and commercial property transfer specialist here on the Costa del Sol. We believe we can be invaluable to you as a buyer.
1. Acquisition Options & Processes
Leasehold — The Most Common Path
Buying a business trading from leasehold property is the most common and affordable way to acquire a trading business here on the Costa del Sol. You are the tenant and pay rent to the property owner, but you own the rights to sell your leasehold interest.
Lease Terms & Conditions
Leases are usually granted for a period of 5 years (up to 10 or more). Renewability after expiration is normally available without further premiums, subject to having respected the contract terms. On signing, you pay a standard rent guarantee equivalent to 2 months rent. Rents can only adjust yearly based on Spanish inflation. Note that at lease break points or when selling your lease, landlords are legally entitled to increase the rent by up to 20% or receive a percentage of the sale price.
The Purchase Process
When a price is agreed, you lodge a reservation fee with your representative for due diligence. If insurmountable issues arise, the reservation is returned. If approved, a purchase/sale contract is signed and a full deposit (normally 10% or between €2,000 and €5,000) along with an attached inventory of equipment is paid. On completion day, the balance is paid, deposits required by the freeholder are secured, and the new lease agreement is assigned.
Rental — Low Initial Cost
Renting commercial property direct from the landlord is a low-cost way of acquiring vacant business premises. Contracts can be negotiated for periods of one year and upwards.
Financial Guarantees
As with a lease, you will usually have to pay a security deposit equivalent to 2 months rent, and quite often a further security bond as a guarantee against equipment left in situ.
Key Restriction
Unlike a lease, you do not have automatic rights to sell your business and rental contract to a third party, unless explicitly agreed by your landlord.
Freehold — Outright Ownership
Freehold means the outright purchase and full legal ownership of the commercial property. Once your offer to purchase has been agreed, you will need a lawyer or legal representative to formalise the agreement.
Due Diligence & Completion Process
Your lawyer will obtain a 'Nota Simple' from the land registry to verify the legal owner, outstanding mortgages, taxes, and utility bills. A 'Valor Catastral' (rateable value) will be calculated to determine the transfer taxes.
Upon satisfaction, private contracts are exchanged with a non-refundable 10% deposit. On completion day, you will sign the 'Escritura de Compraventa' (Title deeds) at a notary office, pay the remaining funds, and obtain full possession. Your lawyer will handle tax payments and final registration.
2. Licensing of Commercial Premises (Licencia de Apertura)
Transferring an Existing License
In most cases, you will acquire a business that is currently licensed for its activity (shop, bar, restaurant, etc.). The license is tied to the premises, meaning the title just needs to be transferred to your name. Once applications are submitted to the Town Hall, you can normally trade by 'piggy-backing' the existing license while the new one processes.
A licensed technical engineer will compile a report and dynamic floor plan to secure a certificate confirming no structural changes violate local sanitary, hygiene, and safety laws.
Estimated Costs & Budgeting
New Premises & Change of Use
Licensing completely new premises or changing the business activity category is a significantly more involved process. It requires a complete new layout project along with complex certified documentation.
Professional Support & Fixed-Price Packages
Most buyers employ a gestor, business transfer specialist, or lawyer to carry out the full procedure. If you are from outside the EEC, you will also need the guidance of an immigration expert to live and work in Spain. You must register for social security, taxation, and acquire health/food handling certificates.
Budget approximately €2,000 to €2,500 for total paperwork, taxes, and technical costs.
No Hidden Commission Fees