# Buying a b&b in Spain... (or opening a Deli!)



## big gus (Jan 2, 2010)

Hi all,

I've searched the forum for help with my situation but couldn't find anything so I hope it's ok to ask here... be gentle with me as it's my first post )

I'm after some help regarding Guest Houses/b & b's (as we know them in the UK) in Spain. We (myself, 34, fiancee, 25, 7-month-old baby and a dog) are hoping to move there in about 12 months and want to spend this time finding out as much info as we can.

Obviously I'd be self-employed and I've read a little bit on here about the costs but can anybody confirm? (Technically my other half would also be self-employed as we'd run the business together... however, I'm sure I can have her as an 'employee' if it is better for us?)

Anyway, our main worry is we can't seem to find anything like a Guest House on any Spanish sites. Do they exist (as we know them in the UK) or is it only hotels for sale?

By way of brief description, we are looking for something similar to what we currently have in the UK.

* Roughly £400k for a freehold (leasehold at a quarter of the price would be preferable!)
* 10-ish ensuite letting rooms
* 2-bed owners accommodation

Obviously we'd like to be near to a main town (the only way the business can survive), or if not then with sea/beach views. One or the other is a must if we want regular guests staying with us.

Is this unrealistic for Spain? 

Our other thought (we're only at that stage!) is to open a Deli in a part of the country where there is a large British population, selling specialist hams, pickles, olives etc.....(presumably we'd need to direct this idea at British expats rather than homegrown Spaniards because of differences in tastes/what people want etc)

Any comments on either of our two plans would be much appreciated. We really are only at the finding-out-if-it's-viable stage!

Regards,
Gus


----------



## baldilocks (Mar 7, 2010)

I haven't come across the BB /Guest house concept here, it is much more hotel style.

As far as your deli idea is concerned do you realise that some of the best hams in the worlds are Spanish and that the largest producer of olives and olive oil in the world is Spain?

Sorry to burst your bubble but I think you need to do a lot more research, probably on the ground.


----------



## Pesky Wesky (May 10, 2009)

Actually many of the* turismo rural* places operate in a similar way to a bed and breakfast and there were a gay couple on here a while back that had opened a bed and breakfast. Do you remember Jojo?? I think it was on that sticky"Introduce yourself" or smth like that, that's bit the dust now.
And by the way, I suppose you know the teaching English thread's got lost ...


----------



## jojo (Sep 20, 2007)

Pesky Wesky said:


> Actually many of the* turismo rural* places operate in a similar way to a bed and breakfast and there were a gay couple on here a while back that had opened a bed and breakfast. Do you remember Jojo?? I think it was on that sticky"Introduce yourself" or smth like that, that's bit the dust now.
> And by the way, I suppose you know the teaching English thread's got lost ...



nag, nag, nag lol ....... I accidentally "unstuck" the teaching thread while I was trying to sort it and then thought that maybe it would be easier if we left it unstuck????? My heads been all over the place since last week, what with the rain, floods, my doggie, problems with schools, power cuts.........

However, enough of my excuses LOL I'll see if I can dig up the thread you're on about PW. But before I do, Doesnt "Cazzy" on here run some kind of a B&B thingy???

Jo xxx


----------



## jojo (Sep 20, 2007)

........ I've found this one, not the one you meant tho PW?? But worth a look

http://www.expatforum.com/expats/sp...86-bed-breakfast.html?highlight=Bed+breakfast

Jo xxx


----------



## jojo (Sep 20, 2007)

SteveHall said:


> Sorry it´s been such a xxxx week. Hugz
> 
> Yes, she does. About an hour inland from the coast (and a million miles away!) but only 15 minutes from the AVE.
> 
> Sure she will help but I think she is travelling.


Yes back to the UK for a two week visit....


Jo xxx


----------



## Pesky Wesky (May 10, 2009)

This is the guy I was thinking o - stevex9
fExpat Forum For Expats, For Moving Overseas And For Jobs Abroad - View Profile: Stevex9
He's made 5 posts and when you've made 5, you can send him a personal message.


----------



## dunmovin (Dec 19, 2008)

With all due respect, I have to ask, with 400,000 capital, to play with, why are you asking us?.There are very few(if any) who have that sort of money to invest in a business.


----------



## Pesky Wesky (May 10, 2009)

dunmovin said:


> With all due respect, I have to ask, with 400,000 capital, to play with, why are you asking us?.There are very few(if any) who have that sort of money to invest in a business.


400,000 capital?????????


Sorry, sorry, just read it again with my eyes open


----------



## big gus (Jan 2, 2010)

I'm not sure I understand your point.

You're wondering why I'm asking about Spanish b&b's on a forum for Brit ex pats who live in Spain?

Thanks for all the other responses, we've taken them all onboard and are sifting through as we speak. Lots of good points made by you guys/girls, and it seems maybe we need a rethink. From these answers our budget obviously isn't going to be big enough to buy the business we want outright.

And it appears there isn't a 'leasehold' option for b&b's in Spain (a very popular option in the UK) so - once again - thanks to you all for helping.

The Deli idea seems to have been shot down as well!! It looks like its back to the drawing board (


----------



## gus-lopez (Jan 4, 2010)

big gus said:


> I'm not sure I understand your point.
> 
> You're wondering why I'm asking about Spanish b&b's on a forum for Brit ex pats who live in Spain?
> 
> ...


Actually I've just remembered that there's one not to far from me but they bought it as an old cortijo & refurbished it as a 10 bed guest house . It's been up for sale for a couple of years, don't think they got that many visitors but then again it's in the middle of vegetable fields , no views, 40kms from the nearest beach & they want a million for that !!!!


----------



## Cazzy (Nov 23, 2008)

jojo said:


> nag, nag, nag lol ....... I accidentally "unstuck" the teaching thread while I was trying to sort it and then thought that maybe it would be easier if we left it unstuck????? My heads been all over the place since last week, what with the rain, floods, my doggie, problems with schools, power cuts.........
> 
> However, enough of my excuses LOL I'll see if I can dig up the thread you're on about PW. But before I do, Doesnt "Cazzy" on here run some kind of a B&B thingy???
> 
> Jo xxx


Yep, Cazzy does, and I also rent out holiday homes. I also work for an estate agent and we have a few B&B's for sale under 400k. I have PM'd Big Gus.


----------



## pauliebabes (Apr 13, 2011)

SteveHall said:


> Yes, they exist but at nowhere near the type of money you are looking at - a 12 bed "house" at 400k!?!? ¡Creo que no! I know a 3 bed going for 425K .... I also know how much she has lost on it over 3 years! I know 2/3 people trying to make a living.
> 
> You should Google "casa rural España" or "venta casa rural"
> 
> ...


Hi Steve,

I'm in Marbella at the moment doing my research into businesses (with regards to a planned move from Australia in the near future) and came cross this thread which is only about a year old. I was just wondering what your (and anyone elses) opinion is on the current state of the commercial property market in Spain? I've been looking at the low end accommodation sector and I have found what appears to be very nice looking pensions/ hostals (in urban areas) for as little as 53,000 per room. That's less than 650,000 for the 12 bed discussed in the original post- not quite the 400,000 that was met with skepticism, but certainly getting a lot closer! 

My main question is this:- have prices dropped that much in a year and if so will they continue to drop? I know this is akin to asking about the length of the proverbial piece of string but I would be interested to hear what people think.

With regards to buying a commercial property I have also been told the following 'on the qt' by an apparently reputable source (a business broker operating here for a number of years):-what's important is the valuation of the property and not your income or indeed the income of the business. Indeed, in assessing a commercial property for mortgage purposes the bank will take no more than a cursory look at the business trading history. Your finance broker or abogado is all important when it comes to applying for finance. The 'Spanish Way' is if you have the right contacts then they will use a 'tame' valuer to get the deal done. For example, on the face of it you will not be able to borrow more than about 60% to purchase the freehold of a commercial property. Maybe 70% as an absolute maximum. However, if the property has, say, dropped in price by 50% over the last couple of years then there's every chance that the bank will still go off the older valuation, and if they do then they will lend against that regardless of the price that you have agreed with the vendor. So effectively you could end up acquiring a commercial property for 100% (or more) finance!

I have spent quite a bit of time on google etc researching this whole area and I have to say there's not very much information around at all about buying commercial property in Spain. From my experience that leads me to believe that what I'm being told isn't as widely off the mark as it may sound. I suspect plenty goes on here that's 'under the radar' and things can be accomplished if you know how the system works.

Any comments from those with experience in such matters 'on the ground' would be very much appreciated.

Thanks,

Paul


----------



## jojo (Sep 20, 2007)

pauliebabes said:


> I have spent quite a bit of time on google etc researching this whole area and I have to say there's not very much information around at all about buying commercial property in Spain. From my experience that leads me to believe that what I'm being told isn't as widely off the mark as it may sound. I suspect plenty goes on here that's 'under the radar' and things can be accomplished if you know how the system works.
> 
> Any comments from those with experience in such matters 'on the ground' would be very much appreciated.
> 
> ...


Steve doesnt come on the forum much anymore - last we heard he was based in Sweden but in the UK riding a bike!

There are some things that go on "under the radar" but you would need to know/be good friends with those in charge and be at least fluent/bilingual! Sadly, as a foreigner you're more likely to be seen as the "cashcow" You really do need to know what you're doing and fully understand how everything works here!

Jo xxx


----------



## zilly (Mar 9, 2010)

To my knowledge lots of the British owned shops selling deli. type food round here are closing or have closed or are hanging on by a thread........


----------



## pauliebabes (Apr 13, 2011)

Thanks for the responses, however I'm going to start a new thread titled 'Buying Commercial Property' to see if that gets any more attention.


----------

