Information:
The cost for all our services in finding you a Bar /Restaurant
or residential property for sale, lease, or rent in Mallorca
(Majorca) Menorca or Ibiza, are absolutely free. The vendor
pays our fees for the introduction. The only cost to you apart
from the costs associated with your purchase, are any expenses
associated with your inspection trip.
Our Statement:
It is our aim to ensure that we offer you the best advise
for your situation. Everybody is unique in there ability,
determination and skill sets to make a business successful.
That is why until we have a full understanding of what you
would like and an understanding of you, we will never just
send you details of a business in the hope you will blindly
buy it. It is as important to us that we endeavor to best
match you with your business to give you the best possible
chance of success. We try and negotiate the best deal for
you when it comes to the purchase price, however sometimes
the owners will advertise the bar with two or three agents.
If you see any bar on our site offered for less on another
site. Please let us know. We will check it out and if it is
legitimate we will negotiate the same price. Remember it’s
not just about buying a business through Balearics life, it’s
the aftercare you will also receive giving you the best chance
of being successful.
Business Types:
Freehold: Are much less commonly available and considerably
expensive. They have the obvious advantage of you owning the
business, brick and mortar outright. But remember it can and
will be repossessed if you fail to keep up loan repayments
on it. Finance can often be arranged by specialist lenders
in your country of origin. Or Spanish banks, usually up to
65% of the bank's valuation. However remember to add between
10%-15% on the purchase price for transfer and legal costs.
Leasehold: Known as traspaso or cesion,
is the most common method of purchasing a business in Spain.
The property owner owns the shell but you own the fixtures
and fittings and can decorate as you see fit. However any
structural changes must first be agreed with the owner and
the appropriate authority gained. The purchaser of the leasehold
has the right to resell it whenever they wish. They must first,
however, offer it to the landlord who owns the property. If
the owner doesn't wish to buy it back, the leaseholder can
then sell it to whoever they choose. The freeholder normally
has the right to retain around 10%-15%* of the sale (*This
would be advised in the contract).
Leaseholds usually run for between 5 and 10 years, with the
leaseholder having the right to renew it at the end. To purchase
a leasehold, a capital sum would be paid and thereafter a
monthly or annual rent (if monthly, it is usual for the freeholder
to request 1 month's rent in advance and 2 month's deposit).
Rental increases, during the term of your lease, are only
permitted annually and based on the annual rate of inflation
(usually 2-4%), however, when the lease term expires you have
the right to renegotiate. However at this point the landlord
has the right to increase the rent by up to 15%.
It is virtually impossible to secure a loan on a typical
leasehold. To finance this type of purchase you would have
to have the funds available through savings or re mortgage
of an asset Usually your home in your country of origin.
Rental: These are few and far between.
Contracts are typically for a year and normally renewable.
The option to buy the freehold is often built in. Many landlords
will request the rent is paid in advance (often 1 year), a
refundable deposit will also be requested.
Property purchase & Rental
We work with all the leading property agents in Mallorca (Majorca)
Menorca and Ibiza. If you are looking to buy your own home,
or looking for a long term rental. Just fill in the Contact
us form and give us as much information about what you looking
for as possible. We will then try and locate on your behalf
a selection of suitable properties before contacting you with
our results. As with business purchase this service is completely
free of charge to you the client.
Taxation
Taxation for self-employed people is straightforward. Registration
in the tax system is normally included in your legal fees
for the purchase of your business. Options to pay will be
explained via your lawyer. If you do not feel comfortable
with managing your finances, an Asesor Fiscal or a Gestor,
the Spanish equivalent of accountants, are plentiful and reasonable
to assist with tax returns etc. The lawyer will also arrange
for you to contribute to the social security system which
has options to cover your whole family if they wish to use
the National Health System.
Health Services / Dentistry
You are advised to obtain a form E111, available from U.K.
main post offices. This allows you access to the basic Spanish
National Health service. As a Self Employed business person
you can expect to pay approx €200pm to the Social security
system which will allow you to sign on with a local doctor
and access the medical system without further charge. Alternatively
if you purchase private medical insurance, approx €45pm
you can access a large number of private hospitals and doctors.
Dentistry, apart from emergency pain relief work, is private
and comparable with private treatment costs in the U.K.
Schools
The state school system is free for the children of business
owners paying into the *social security system (*compulsory
once you purchase a business), many schools have a number
of British children enrolled, who appear to adapt extremely
quickly to the language. The only costs incurred with state
schools are the cost of books, pencils etc.
You may wish to enroll your child in the private system to
ensure continuation of their British studies. At present,
there are 5 English speaking schools, 4 of which are following
the same curriculum as the U.K. All of these schools have
consistently achieved grades well above the U.K average.
Gas/Electric/Water/telephone
Electricity on the island is mainly 220 volts. So that equipment
from the UK will work ok. However it is best to check before
making a purchase or renting accommodation.
Gas is a mixture of mains or bottled depending on the location
of your property. Bottled gas is not expensive approx €9
a bottle.
Water is safe to drink but has a high mineral content. Most
people choose to use bottled water which is very cheap. Mains
water is metered and the bill arrives every two months.
Telephone, initially obtain a Spanish phone chip for your
mobile. You can have your phone unblocked and this then becomes
a very cost effective way of communicating (approx 75% cheaper
than using your UK phone abroad) (www.0044.uk.com/) Once you
have accommodation sorted you can have a phone line installed.
Again the bill arrives every two months.
Pets
There is no difficulty bringing your domestic pets to Mallorca,
(Majorca) Menorca or Ibiza. Cats and dogs do require a (pets
passport) and a vet's confirmation that the animal is fit
to travel.(www.defra.gov.uk) and look at the sub heading pets
travel scheme. Ensure that you see your vet at least 6 weeks
before departure, Birds require an export certificate signed
by a vet within a couple of days of travel.
If you are not in possession of the necessary paperwork
your pet may have to go into quarantine (20 days in Spain).
Cars and driving
You may use your British licence for up to 6 months in any
1 year in Mallorca. After 6 months or if you become a Spanish
resident before this time, you must either exchange your licence
for a Spanish licence (your old licence will be returned to
the DVLA. If you return to Britain permanently, to get your
licence back, the same procedure applies only vice-versa.)
Alternatively, you can have your British licence (provided
it is the newer type with your photograph) stamped and computer
registered with the traffic authorities as a non-resident.
If you purchase a vehicle with Spanish plates, you must carry
an international driving licence as well as your ordinary
licence or alternatively get an official translation of your
licence from the Spanish consulate in Britain.
Next Stage
If you see a business you are interested in simply give us
a call or e-mail us. We will then contact you and provide
you with any details you require to allow you to decide if
you wish to view. Wherever possible choose several, you could
quite easily inspect three in a day, to make your trip cost
effective and give you the chance of comparison. What you
see in a picture to what you feel about a business when you
are standing outside can be two completely different things.
We will arrange to escort you to view the businesses of your
choice. If you see a business you would like to purchase,
we will advise you on a local English speaking reputable lawyer
(you can however arrange one of your own). Legal fees are
seldom over €800; But this will be discussed with you
at the first consultation meeting with the lawyer, which is
free, whether you wish to proceed or not. If you then wish
to proceed, a 10% or a minimum of €3000 deposit of the
agreed sale price of the business is required. The business
will then be taken off the market and a completion date agreed.
Formalities normally take around 4 - 8 weeks.
Please Note: we only carry out contract signing, deposit
and balance transfer in the presence of a qualified person
i.e. a lawyer (abogado) of your choice.
Remember you are not on your own. We will be there to support
you all the way, during and after your purchase to give you
the best chance of making your new business a success.
Good luck!
Barry & Yvonne Rhodes.
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