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We have put together the answers to some of your most common questions and we will continue updating this page adding the information most frequently asked for. We have also addressed various important topics in our Useful Information section of the website.Tenerife Bars For Sale However, if you don’t find an answer you are looking for, don’t hesitate to contact us or send us an enquiry and we will get in touch with you as soon as we can.


Questions...

Can anybody buy a bar, cafe or restaurant in Tenerife?

  • Yes, if you are of legal age and have enough funds, you can buy a bar, cafe or restaurant in Tenerife. For EU citizens everything is much easier, you can buy and start working from one day to another and you can choose to register your business in any legal form. Non-EU citizens have it a bit more complicated as they do not necessarily get an automatic residence and working permit here in Spain, but they still can buy a bar and be the owners of their business in Tenerife, however initially without the right to work in it.


What is “Buying a Traspaso” of a bar, cafe or restaurant in Tenerife?

  • Traspaso is a local term equivalent or close in meaning to buying a leasehold business. Normally traspaso will include the bar’s fixtures, fittings, legal paperwork, reputation and goodwill as well as the right to continue renting the premises. The buyer takes over an existing rental contract or gets a new one. The landlord has by law a possibility to increase the rental price and is also in many cases entitled to a certain commission from the sale of traspaso. Read more on this topic in our article Pros and Cons or Buying a Traspaso and Leasing a Tenerife Bar.

Is it possible just to rent a bar, cafe or restaurant?

  • Yes, opportunities to rent a fully fitted and equipped bar, cafe or restaurant do appear now and then on the market, but not in abundance. Landlords expect a certain level of financial commitment from their tenants and therefore would either request for a substantial deposit (6 months or longer) or offer a traspaso deal. Based on our experience it is highly unlikely to find a fully fitted bar in a good location available “just for rent”.

Can I get a bank loan or credit for buying a bar, cafe or restaurant in Tenerife?

  • If you are buying a leasehold business (traspaso) the probability of getting a loan is almost “zero”. You might be able to get a mortgage if you buy a freehold property, however even then there is no guarantee. The banks are quite reluctant in giving mortgages in current times (unless the property is repossessed by the bank) and will require a high level of security from your side.

How can I be sure that I buy a debt-free business in Tenerife?

  • Your appointed lawyer/solicitor or gestor will make sure that the Tenerife business you are buying is debt-free and has no legal problems. Once you have decided for a bar, cafe or restaurant and paid a deposit to reserve it, your appointed lawyer or gestor will initiate all required checks. If there are any debts on the business, those will be either cleared by the seller before the completion or your lawyer will retain the required funds and will make sure the debts are paid.

What are the total costs of buying a bar, cafe or restaurant in Tenerife?

  • You are right – the purchase price alone is not enough, there will be some additional costs you need to consider. We did address this topic in more details in one of our articles - please read more here Bar in Tenerife: The Costs

How long does it take to buy a business and which documents are required?

  • Buying a business is quite a straight forward procedure and in most cases it takes as long as the parties wish it to take. We had cases where deals were completed in 1-2 weeks and cases where it took months to complete. Naturally, the seller needs to have all business paperwork prepared, while the buyer needs to make sure he/she possesses an NIE and Social security number and has the purchase funds available. Furthermore, in order to perform any commercial activity you have to be registered with Spanish and Canary Islands tax authorities. Depending on the legal form you choose for your business, the registration takes shorter or longer, from 2-3 days for an autonomo to 2-3 weeks for an S.L. company. Your appointed lawyer or gestor will work on your behalf to arrange all required paperwork.

Can I get the accounts and full financial information for the business I’m interested in?

  • Most of the business owners will be able to provide you some information; however it might not be exactly what you are used to see in your own country. Please read more on this topic in one of our articles Tenerife Bar Accounts

What is the busiest time of the year for my Tenerife bar, cafe or restaurant?

  • Well, a simple answer to this question is that your bar, cafe or restaurant in Tenerife will be busy pretty much throughout the whole year – that is why you wanted it in Tenerife, didn’t you? Tenerife has 12 months sunshine with wonderful temperatures and consequently a 12 months tourist season! But do not panic, you will be able to take a break and have your own holidays! There are some quieter periods throughout the year. Historically May and early June, as well as the first 2 weeks of December are a bit quieter, so use this time to recharge your own batteries or to refresh/refurbish your bar, cafe or restaurant in preparation to busier summer and winter seasons!

Do I need to speak Spanish to run my bar, cafe or restaurant in Tenerife?

  • Not knowing the language is not going to stop you from running a successful business, however in the long run Spanish will bring you further and will not only make your life easier and cheaper, but will also open new ways and opportunities in social and business life of the island. So, our advice will be to try and learn at least some Spanish!