# business in Spain



## Bemused (Jun 1, 2013)

Hi All, I'm new to this forum and haven't found anything on this topic yet, hence this new posting.
I currently live in Birmingham but, I'd like to move to Spain. I have heard of a business for sale in the Benidorm area and I am seriously thinking that it would be a good idea. It's a little supermarket that is owned by a UK couple who need to go back to the UK for various reasons. The shop does quite well and has been going for around 9 years. I have run my own businesses for a number of years although not in this field. The shop does have some staff though.
My question is, is it very difficult to buy and run your own business in Spain? One of the many comments I've seen on various forums is the question of corruption in the country. Is that a big problem if trying to buy and run a business over there? I guess one needs some form of business licence and also need too register for VAT, Tax and maybe other things as well.
This is a bit of a long first post but any and all comments would be very much appreciated


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## xabiaxica (Jun 23, 2009)

Bemused said:


> Hi All, I'm new to this forum and haven't found anything on this topic yet, hence this new posting.
> I currently live in Birmingham but, I'd like to move to Spain. I have heard of a business for sale in the Benidorm area and I am seriously thinking that it would be a good idea. It's a little supermarket that is owned by a UK couple who need to go back to the UK for various reasons. The shop does quite well and has been going for around 9 years. I have run my own businesses for a number of years although not in this field. The shop does have some staff though.
> My question is, is it very difficult to buy and run your own business in Spain? One of the many comments I've seen on various forums is the question of corruption in the country. Is that a big problem if trying to buy and run a business over there? I guess one needs some form of business licence and also need too register for VAT, Tax and maybe other things as well.
> This is a bit of a long first post but any and all comments would be very much appreciated


:welcome:

if it's a business which is already running then the licences etc shouldn't be an issue - also, registering for IVA (VAT) is a simple process

the only question I would have, is - how do you know the business is doing well?

a lot of businesses have several sets of books - 1 for the tax-man, one for a potential buyer & the real ones....

I'd want to see the tax-man ones  & then work on the assumption they _might _be telling the truth on those....


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## Bemused (Jun 1, 2013)

Thanks for that. At this stage the accounts are from the vendor and could be true or embelished. If it looks viable then I'll have to get a firm of accountants to do a due dilligence for me to verify the trading figures. But, thanks for the tip. I'll certainly request to see the accounts that are submitted to the tax office.


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## gus-lopez (Jan 4, 2010)

I'd also check the staff situation because if you take it over with them ,you'll be liable for there redundancy payments if they are let go at any time. The longer they've been there the bigger the bill. Could potentially run into 10's of 000's !
There is someone on here who had to pay out 100k to unload staff that he'd inherited. Can't remember his name ?


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## jojo (Sep 20, 2007)

Bemused said:


> Hi All, I'm new to this forum and haven't found anything on this topic yet, hence this new posting.
> I currently live in Birmingham but, I'd like to move to Spain. I have heard of a business for sale in the Benidorm area and I am seriously thinking that it would be a good idea. It's a little supermarket that is owned by a UK couple who need to go back to the UK for various reasons. The shop does quite well and has been going for around 9 years. I have run my own businesses for a number of years although not in this field. The shop does have some staff though.
> My question is, is it very difficult to buy and run your own business in Spain? One of the many comments I've seen on various forums is the question of corruption in the country. Is that a big problem if trying to buy and run a business over there? I guess one needs some form of business licence and also need too register for VAT, Tax and maybe other things as well.
> This is a bit of a long first post but any and all comments would be very much appreciated


Call me negative, but to buy a business in a field you havent run before, in a country that you dont know, presumably in a language that you're not totally fluent in, business/tax/permissions knowledge that you dont understand and with all of the unemployment issues and crisis going on in Spain.... Its one hell of a risk?????

Jo xxx


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## tarot650 (Sep 30, 2007)

Bemused said:


> Hi All, I'm new to this forum and haven't found anything on this topic yet, hence this new posting.
> I currently live in Birmingham but, I'd like to move to Spain. I have heard of a business for sale in the Benidorm area and I am seriously thinking that it would be a good idea. It's a little supermarket that is owned by a UK couple who need to go back to the UK for various reasons. The shop does quite well and has been going for around 9 years. I have run my own businesses for a number of years although not in this field. The shop does have some staff though.
> My question is, is it very difficult to buy and run your own business in Spain? One of the many comments I've seen on various forums is the question of corruption in the country. Is that a big problem if trying to buy and run a business over there? I guess one needs some form of business licence and also need too register for VAT, Tax and maybe other things as well.
> This is a bit of a long first post but any and all comments would be very much appreciated


Please forgive me I am going to sound negative here.Just because they have run it for 9years does not mean you will make a success of it straightaway.After living here for nearly 19years permanently have lost count of people who have taken over successful businessess and come unstuck.You don't say what clientele the supermarket targets,whether it is British holidaymakers or spanish and also take into consideration the hours that you have to put in.As I said,nothing to do with me but I would really look long and hard at this venture.Sincerely wish you the best of luck if you go for it but sadly now spain is not the cheap place that it once was to live.


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## Aron (Apr 30, 2013)

Bemused said:


> Hi All, I'm new to this forum and haven't found anything on this topic yet, hence this new posting.
> I currently live in Birmingham but, I'd like to move to Spain. I have heard of a business for sale in the Benidorm area and I am seriously thinking that it would be a good idea. It's a little supermarket that is owned by a UK couple who need to go back to the UK for various reasons. The shop does quite well and has been going for around 9 years. I have run my own businesses for a number of years although not in this field. The shop does have some staff though.
> My question is, is it very difficult to buy and run your own business in Spain? One of the many comments I've seen on various forums is the question of corruption in the country. Is that a big problem if trying to buy and run a business over there? I guess one needs some form of business licence and also need too register for VAT, Tax and maybe other things as well.
> This is a bit of a long first post but any and all comments would be very much appreciated


Yes, a successful business is not easy. If the busines is successful it means lots of hard work keeping the business and improving it. A successful business has to keep expanding to stay successful. If the business has been overrated, then you have got to work harder to make it a success. I have had a food business in the UK. My wife and I were up at 4.30 every morning. We also had a catering business so we were working long hours 7 days a week. When everything is going well, it is great earning good money, though much of it got ploughed back into the business.

Don't get me wrong, I admire people going into business, Spain needs young people with drive to invest in this great country. Most Brits these days just come to retire and enjoy the lifestyle, but be wary, this is a venture that needs a great deal of thought.

If you are successful, it will be down to you to make it work. There will be days you wish you could have a lie in, but you can't. You may be working when everyone else are enjoying themselves. I wish you all the luck in the world if you do it, but beware the pitfalls. Employ someone who knows about company law. These days there are laws that even I know nothing about.

As Soulboy said, if you live out here long enough, you see everyone come and go.


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## DunWorkin (Sep 2, 2010)

Where in Benidorm is it? - is it near lots of holiday apartments or is the area mainly all inclusive hotels?

What type of supermarket? - you will be in competition with Mercadona, Carrefour etc
I doubt you will be able to match them either on price or selection.

Are you catering to the English or the Spanish? - you need to decide this before you decide what type of goods to stock.

Are you intending to open 12 months a year? What hours each day?

These are the type of questions you need to ask yourself before even thinking about this.


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## Nikkinoo (May 19, 2013)

Where abouts is it?? My mum lives in beni and knows a lot of expats I will ask her if she knows anything?? 
Nikki


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## mrypg9 (Apr 26, 2008)

Aron said:


> Yes, a successful business is not easy. If the busines is successful it means lots of hard work keeping the business and improving it. A successful business has to keep expanding to stay successful. If the business has been overrated, then you have got to work harder to make it a success. I have had a food business in the UK. My wife and I were up at 4.30 every morning. We also had a catering business so we were working long hours 7 days a week. When everything is going well, it is great earning good money, though much of it got ploughed back into the business.
> 
> Don't get me wrong, I admire people going into business, Spain needs young people with drive to invest in this great country. Most Brits these days just come to retire and enjoy the lifestyle, but be wary, this is a venture that needs a great deal of thought.
> 
> ...


Am I correct in thinking that when most people talk of 'businesses' in Spain they are referring to one-man/woman set-ups rather than empresas with several staff? So they would, most of them, if that is the case, have self-employed status and not need to go through the process of actually setting up a company?


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## Bemused (Jun 1, 2013)

Hey thanks folks. The responses are great and certainly make one give serious second thoughts. I gather the shop is aimed at supplying English sourced products mainly to the English community in the area. It is a little north of Benidorm but I don't know exactly at the moment. Hmmm, maybe I should just stay here in the UK and deal with known quantities.


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## xabiaxica (Jun 23, 2009)

Bemused said:


> Hey thanks folks. The responses are great and certainly make one give serious second thoughts. I gather the shop is aimed at supplying English sourced products mainly to the English community in the area. It is a little north of Benidorm but I don't know exactly at the moment. Hmmm, maybe I should just stay here in the UK and deal with known quantities.


if it's anywhere near one of these I wouldn't bother - you'd never compete on price & product range OVERSEAS.ES


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## DunWorkin (Sep 2, 2010)

Yes, there is an Iceland in Benidorm. 

Even more difficult to compete with is a shop in Villajoyosa, just outside Benidorm. It is a cash and carry type place selling British products but is open to everyone. They do amazing business and are a lot cheaper than Iceland.

If the place you are looking at is a small convenience store near lots of self catering accommodation then you might stand a chance but otherwise, as things are at the moment, I would advise against it.


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## Nikkinoo (May 19, 2013)

xabiachica said:


> if it's anywhere near one of these I wouldn't bother - you'd never compete on price & product range OVERSEAS.ES


Iceland is really expensive in Benidorm as I know it anyway???


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## DunWorkin (Sep 2, 2010)

Nikkinoo said:


> Iceland is really expensive in Benidorm as I know it anyway???


Yes, very expensive. We used to go there but no longer.


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## xabiaxica (Jun 23, 2009)

DunWorkin said:


> Yes, there is an Iceland in Benidorm.
> 
> Even more difficult to compete with is a shop in Villajoyosa, just outside Benidorm. It is a cash and carry type place selling British products but is open to everyone. They do amazing business and are a lot cheaper than Iceland.
> 
> If the place you are looking at is a small convenience store near lots of self catering accommodation then you might stand a chance but otherwise, as things are at the moment, I would advise against it.


you mean Ex Pats - yes they're pretty unbeatable




Nikkinoo said:


> Iceland is really expensive in Benidorm as I know it anyway???


well for sure I wouldn't do a weekly shop in ours, though some people do, & they're actually cheaper than Mercadona for some items - but their prices are way lower than the ' Brit corner shops' we had in Jávea - one of which has just closed after many years


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## DunWorkin (Sep 2, 2010)

xabiachica said:


> you mean Ex Pats - yes they're pretty unbeatable


Yes that is who I mean. I wasn't sure if I was allowed to mention their name


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## xabiaxica (Jun 23, 2009)

DunWorkin said:


> Yes that is who I mean. I wasn't sure if I was allowed to mention their name


no reason why not - mind you if you were a first time poster it might seem a bit suspicious


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## ericban (Oct 18, 2012)

The Iceland in San Javier has the weirdest exchange rate marked on their wares. It has the English price in pounds printed on the boxes, for example £1 and then a sticker over or next to is showing 1.50 Euros. The bacon with the £5 printed on the wrapper is 7.50 Euros.

I wish I could get that exchange rate, I would be a pension payday millionaire! lol.

I find Iceland incredibly expensive compared with the Mercadona/Lidl combination that we now use.

Regards
EB


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## xabiaxica (Jun 23, 2009)

ericban said:


> The Iceland in San Javier has the weirdest exchange rate marked on their wares. It has the English price in pounds printed on the boxes, for example £1 and then a sticker over or next to is showing 1.50 Euros. The bacon with the £5 printed on the wrapper is 7.50 Euros.
> 
> I wish I could get that exchange rate, I would be a pension payday millionaire! lol.
> 
> ...


it is expensive for a lot of things, but don't forget that it's all 'imported goods', for which you'll always have to pay a premium - & of course that 'exchange rate' has to cover the transport costs, too

it's still generally a lot cheaper than the small Brit corner shop though - simply because Overseas Foods has the buying power

I would never do a major weekly shop there - but for a few things which I can't get in Mercadona it's worth it for the occasional treat of something 'English' which I might have a craving for


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## snikpoh (Nov 19, 2007)

I think everyone is missing the point that ICELANDS 'should' be for those English products that you can't buy anywhere else (as a treat?). That being the case, people will pay a little more,


Having said that, I've often seen people buying the strangest items - bottled water, vegetables, and wine! All of these sort of items could be bought in any Spanish supermarket at a fraction of the cost.

I don't think I've ever seen anything in Icelands (that I can get elsewhere) at a cheaper price.


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## DunWorkin (Sep 2, 2010)

snikpoh said:


> I think everyone is missing the point that ICELANDS 'should' be for those English products that you can't buy anywhere else (as a treat?). That being the case, people will pay a little more,
> 
> 
> Having said that, I've often seen people buying the strangest items - bottled water, vegetables, and wine! All of these sort of items could be bought in any Spanish supermarket at a fraction of the cost.
> ...


I have never bought bottled water or wine there but I have bought vegetables. 

I buy what they call breakfast mushrooms - they are large like portabello mushrooms which are very difficult to find here in Spain.

I have also found fresh rhubarb there and fresh sprouts much nicer than the ones you find here.

As I said before, I rarely go there now as they are becoming very expensive.


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## baldilocks (Mar 7, 2010)

snikpoh said:


> I think everyone is missing the point that ICELANDS 'should' be for those English products that you can't buy anywhere else (as a treat?). That being the case, people will pay a little more,
> 
> 
> Having said that, I've often seen people buying the strangest items - bottled water, vegetables, and wine! All of these sort of items could be bought in any Spanish supermarket at a fraction of the cost.
> ...


Iceland's Porridge Oats are cheaper than Mercadona


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