Buying a Business in Spain (2026 Guide)

Leasehold vs Freehold Businesses on the Costa del Sol

For most buyers looking to purchase a bar, restaurant, café, or any type of business on the Costa del Sol, the most common option is to acquire a leasehold business rather than purchasing the property outright.

Leasehold businesses are generally easier to buy, more affordable, and simpler to sell in the future, which is why they remain the preferred choice for many entrepreneurs moving to Spain.

Leasehold Businesses in Spain

A leasehold purchase means that you are buying the business assets, goodwill, and the right to operate from the premises, while the property itself remains owned by the landlord.

Typical commercial lease terms in Spain include:

  • Initial lease period commonly 5 years

  • Often structured as “5 + 5”, meaning a further 5-year renewal option

  • Two months rent deposit always required

  • Rent normally paid monthly in advance

  • Rent is subject to IVA (VAT) at 21%

Commercial rental contracts usually include a review clause allowing annual rent updates, which are typically linked to an inflation-based reference index in Spain. In recent years, Spain introduced a new IRAV rental index designed to stabilise rent increases and replace CPI in many new agreements.

Because of this, professional legal advice is essential when negotiating a new lease agreement to ensure the terms are fair and protect your investment.

When a lease expires, the landlord may issue a new lease agreement, and this is often when rent renegotiation occurs. A qualified lawyer will normally negotiate these terms on your behalf.

Freehold Businesses in Spain

Buying a freehold business means purchasing both:

  • The business itself

  • The commercial property

Freehold opportunities are less common on the Costa del Sol and generally require a significantly higher investment.

However, they offer important advantages:

  • No monthly rent payments

  • Long-term security of premises

  • Ability to lease the business to another operator

  • Potential capital appreciation of the property

For investors seeking passive income, owning a freehold business can provide rental income from both the property and the business operation.

Legal Requirements When Buying a Business in Spain

Once you find the right business opportunity, the next crucial step is to appoint an independent lawyer experienced in Spanish commercial law.

A qualified legal team will carry out due diligence checks, verify licences, and ensure the transfer is completed safely and legally.

Typical documentation and requirements include:

  • NIE Number (Número de Identidad de Extranjero)

  • Fiscal registration with the Spanish tax authorities

  • Municipal Opening Licence (Licencia de Apertura)

  • IVA / VAT registration

  • Social Security registration

  • Residence registration (Empadronamiento)

  • Food handling certificate (for hospitality businesses)

  • Health and safety certification

  • Town Hall compliance checks

  • Sanitary and technical inspections

Ensuring all licences are correct is critical when purchasing bars, restaurants, cafés, and any other type of businesses in Spain.

Business Transfer Process in Spain

The legal transfer process typically involves several key stages.

1. Initial Due Diligence

Your lawyer will:

  • Review the existing lease contract

  • Confirm the opening licence is valid

  • Check Town Hall records and compliance

  • Arrange for an engineer or technician to inspect the premises

This ensures there are no legal or licensing issues before purchase.

2. Deposit Agreement

Once the initial checks are completed:

  • A deposit agreement (contrato de arras) is signed

  • The purchase price and completion date are agreed

  • Deposits already paid are recorded in the agreement

3. Completion and Business Transfer

On completion day:

  • Remaining funds are paid

  • Lease transfer or new lease is signed

  • Business assets transfer to the new owner

  • Licences are updated in the buyer’s name

Your lawyer will also assist with practical matters such as:

  • Changing utility accounts

  • Setting up telephone and internet

  • Liaising with the local Town Hall

Typical Legal Costs for a Business Transfer (2026)

The legal and administrative costs involved in purchasing a business in Spain are relatively modest compared with many other European countries.

Typical costs include:

Legal Services

  • Approx. €1,500 + IVA

Technical Engineer Inspection

  • Approx. €450 including IVA

Town Hall Licence Transfer Fee

  • Approx. €400

Accountant Setup (Tax & Social Security)

  • Approx. €200

Estimated Total Transfer Costs

Approximately:

€2,700 – €3,000 in total

These costs cover the full transfer process, legal documentation, licence changes, and administrative setup.

Opening Stock for Bars & Restaurants in Spain

Unlike the UK, Ireland and Europe tied-pub model, most bars and restaurants in Spain operate as “free houses.”

This means you are free to choose your own:

  • Beer suppliers

  • Beverage distributors

  • Food wholesalers

Major breweries often provide beer fonts, coolers, and branded equipment at no cost when supplying your business.

Most wholesalers deliver daily, so large stock storage is rarely required.

Typical initial opening stock budget:

€1,500 – €2,000

Business Overheads in Spain

One of the biggest attractions of opening a bar or restaurant on the Costa del Sol is the comparatively low operating costs.

Compared with the UK, Ireland and Europe many businesses benefit from:

  • Lower rent costs

  • Lower staff costs

  • High tourism demand

  • Year-round hospitality trade

Profit margins often reach:

  • Up to 60–65% on drinks

  • Higher margins on food items

This is why many buyers relocating to Spain choose the hospitality sector as their first business.

Buying a Bar or Business on the Costa del Sol

For many people, owning a bar, café, or restaurant in Spain is a lifelong dream.

With the right advice and preparation, buying a business on the Costa del Sol can be a relatively straightforward process.

Like any business, success requires:

  • Hard work

  • Good customer service

  • Effective cost control

However, when managed properly, hospitality businesses in Spain can be both profitable and highly rewarding.

Contact Our Fuengirola Office

If you are considering buying a bar, restaurant, or business in Spain, our team would be happy to help you find the right opportunity.

📍 Office Address
Calle Jacinto Benavente Local 1
Edificio Residencia 2
29640 Fuengirola – Málaga

Our office is conveniently located:

  • 1 minute walk from Fuengirola Bus Station

  • 3 minutes walk from Fuengirola Train Station

📞 Telephone: +34 952 464 615
📱 Mobile: +34 664 893 320

🕒 Opening hours
Monday – Friday
10:00 – 16:00

Appointments outside these hours are available by prior arrangement.

We look forward to helping you find the perfect business on the Costa del Sol.