Moving to the Costa del Sol: A Guide to Buying a Bar in Spain

If you’ve ever dreamt of a life filled with sunshine, beautiful beaches, and a thriving international community, then the Costa del Sol could be your ideal destination. Located in southern Spain, this stunning stretch of coastline has become a popular choice for expats looking to start fresh. Whether you’re interested in purchasing a business or buying a bar in Spain, the Costa del Sol offers an enticing opportunity to live and work in one of the most desirable places in Europe. In this blog, we’ll explore what it’s like to move to the Costa del Sol and provide you with some insights on how to buy a business or a bar in Spain.

Why Choose the Costa del Sol?

The Costa del Sol is more than just a beautiful beach destination; it’s a thriving hub of tourism, culture, and commerce. With its temperate climate, excellent transport links, and a high standard of living, the region attracts people from all over the world. Whether you’re retiring or seeking new business opportunities, this area has a lot to offer.

But what makes the Costa del Sol particularly appealing for those interested in buying a business or bar in Spain is its robust tourism industry. Every year, millions of visitors flock to the region for holidays, and many stay for longer periods. This consistent influx of tourists provides a steady stream of potential customers for businesses and bars, making it a great place to invest.

Buying a Bar in Spain: What You Need to Know

When considering buying a bar or business in Spain, there are several steps and legal requirements you must keep in mind. Spain’s business environment is welcoming to foreigners, but there are important regulations you should be aware of. Here’s a brief rundown of the key aspects involved in purchasing a business:

1. Legal Structure: First, you’ll need to decide on the legal structure of your business. Options include sole proprietorships, limited liability companies (SL), and partnerships. It’s advisable to consult with a Spanish lawyer or accountant to understand which structure is best for your goals.
2. NIE Number: Before purchasing a business, you’ll need an NIE (Número de Identificación de Extranjero), which is a tax identification number for foreigners. You can apply for this at your local police station or Spanish consulate.
3. Business License: If you’re purchasing an existing business, make sure it comes with the appropriate licenses. Depending on the type of business, you may need specific permits for activities like serving food and drink.
4. Due Diligence: Always conduct thorough due diligence before purchasing. Depending on the size and type of the business, you may need to review financial statements, tax records, employee contracts, and any other relevant documents. This helps ensure you’re not inheriting hidden liabilities.
5. Financing: Many expats choose to fund their business purchase with a combination of savings, loans, or investments. It is possible to approach a Spanish bank for financing options, but note that securing a loan as a non-resident can be challenging without the right paperwork and financial history.

Buying a Bar in Spain: Considerations

One of the most appealing business opportunities in the Costa del Sol is buying a bar. The region’s vibrant social scene, especially in tourist hotspots like Marbella, Fuengirola, and Malaga, creates a high demand for bars, pubs, and restaurants. If you’re considering buying a bar in Spain, here are some things to consider:

1. Location is Key: The success of a bar is largely dependent on its location. In the Costa del Sol, proximity to tourist areas, beach fronts, and busy shopping streets can increase foot traffic and, in turn, boost profits. Look for bars located in areas with high tourism but also consider local clientele to ensure year-round success.
2. Business Lease vs. Buying Property: Many bars in Spain are available for lease rather than sale. This can offer flexibility, but make sure the lease terms are favorable and secure. Buying the property can be more expensive but provides long-term stability. Understand both options before making a decision.
3. Licensing and Regulations: Owning a bar in Spain requires specific licenses. These include a “Licencia de Apertura” (Opening License) and a “Licencia de Actividad” (Activity License). It’s important to navigate these legal requirements with the help of a local lawyer who understands the Spanish regulatory system.
4. Understanding the Market: The bar market in Spain is competitive, and knowing your audience is key. Many bars on the Costa del Sol cater to tourists, but there’s also a significant local market. Research the area and your target audience carefully before buying.
5. Staffing: Hiring the right staff is crucial to the success of your bar. The Costa del Sol attracts a large number of international workers, and there’s a competitive labor market, especially in the hospitality industry. Offering attractive wages and benefits can help you retain top talent.

Other Considerations for Moving to the Costa del Sol

Beyond buying a business or bar, it’s important to understand the lifestyle that comes with living in this beautiful part of Spain. The Costa del Sol offers excellent healthcare, a wide range of recreational activities, and a strong expat community. However, it’s also crucial to integrate into the local culture and learn the language. While many locals speak English, especially in tourist areas, speaking Spanish will help you navigate day-to-day life and build strong relationships with customers and neighbors.

Additionally, you’ll want to familiarize yourself with Spain’s tax system, which can differ from what you may be used to in your home country. Spain offers some attractive tax incentives for foreign entrepreneurs, but it’s essential to understand the tax implications of your new business.

Conclusion: A Thriving Business Opportunity Awaits

Moving to the Costa del Sol and buying a business or a bar in Spain can be a life-changing decision. Whether you’re looking to invest in the tourism-driven economy, capitalise on the demand for dining and entertainment, or start a new chapter in a stunning location, the Costa del Sol offers endless possibilities. By understanding the key steps involved in buying a business or bar in Spain, as well as the legal and financial requirements, you can set yourself up for success in one of the most sought-after destinations in Europe.

With its sunny climate, thriving tourism industry, and welcoming expat community, the Costa del Sol is the perfect place to turn your dreams of living and working in Spain into a reality.

Why Use Businesses Abroad?

Businesses Abroad are here to support and guide you through the entire process of buying a bar or business in Spain. We work with experienced professionals that will take care of all your legal and tax queries, and even your visas if you need them. Rest assured that you are in safe and capable hands with us!