hi there can any one explain how leasing works i have been offer a lease for 60,000 euros for 5 years on an indefinite renewal but you have to pay rent as well 800 euros a month so what happens after 5 years do you have to pay 60,000 euros again to renew the lease. many thanks paul

your 60.000 is key money , know as welcome money you never see that again
the rent you pay to keep your lease running for 5 years
what i can under stand you hand over 60.000 euros for what ?
need to explan more to me please
jurdy

it sound like you buyying   bar look at this and read it and look t front page off the website and see more about buyying in spain
here few more Business
Most recently updated in our Business in Spain topic:

Business in Spain

Sworn Translations in Spain

Make a Living in Spain

Companies in Spain, The Types of Business Entities for Companies in Spain

Business Etiquette in Spain

Start a Bar in Spain

Start a Business in Spain

... more Business in Spain

Start a Bar in Spain
So you won’t have to reinvent the wheel…“Posted by Dreamer
Here you?ll find practical information on starting a bar in Spain including tips on buying an existing bar and starting a bar in Spain from the ground up.

Everyone likes to eat and drink in Spain! In fact, Spaniards spend a good portion of their money eating and drinking in restaurants, caf?s, and bars, and so do all the tourists and expatriates who make their way to Spain.

According to Wikipedia, ?Spain has more bars per capita than any other country in the world.? This means there are lots of bars for consumers to choose from and that your bar is in good company, but unfortunately, that there?s plenty of competition. Yet many people do manage to make their bar work, and you may be able to do so too. Whether you?d like to buy an existing bar or start your bar from the ground up, read on for those important tips on how to start your bar in Spain.

Buy a Bar in Spain
Buying an existing bar in Spain could be the answer. There are plenty of bars for sale in Spain to choose from and that way you won?t have to worry about putting the bar together, buying equipment, hiring staff, creating a winning formula, or reinventing the wheel. Most of the heavy work has been done already, but don?t neglect to seek the advice of a good lawyer or you might end up buying something you?ll regret! And make sure you notify your town or city hall (ayuntamiento) when you?re the bar?s new owner.

Here are some things you should keep in mind when shopping for your bar:

Why do the current owners want to sell their bar? Be sure to find out their real reasons! If the owners are looking to retire or have other life reasons that justify the sale, that?s good. But if the owners are looking to unload a bar that is hemorrhaging money, beware! This may not be apparent at first sight either. You?ll need to evaluate each bar and its financial records carefully. No matter how much potential you may think a particular bar has, turning a money-losing bar into a profitable affair isn?t very likely.

Make sure you get a total picture of the bar?s financial health. Ask to see the bar?s financial records and go over them with a knowledgeable financial professional. You need to know what you?re getting into and you don?t want to be surprised if expenses are higher than you thought and/or profits are lower than you expected. Ask the owners if the bar will need any capital improvements soon, repairs, or other expenses that won?t be reflected in the current list of expenditures. Does the bar have any debts? If so, find out the exact terms, as you will become responsible for them.

Licenses. Make sure that all the current licenses are in order, and don?t just take the owners? word for it. Have your lawyer verify them. If you decide that you?d like to add something (i.e. live music) that the current bar isn?t licensed for, find out if and how you can obtain such a license; don?t just assume that you?ll be able to.

MANY THANKS FOR YOUR COMMETS AND ADVISE IT WAS A GREAT HELP

will hope i help you and come back fill us in what happen , and if you not sure we alwas here to help you out

as my dad would say look and look again and do it again for 3th time

I agree with much of the other recent posting but to summarise:

You pay for a Traspaso ONCE only. The amount is dependent upon the premises, contents and business you are acquiring and local prices etc. At the end of 5 years (in your case) the rent can be renegotiated or you can sell the Traspaso onto someone else.

Make sure you understand if you are dealing with the freeholder or another tenant.

Either way you need the services of a good solicitor to make sure you fully understand all of the terms and conditions and make sure any licences are uptodate and correct for the business you want to run. It can be a bigger minefield than buying a house!

PS: Also they are now also called a Cesion

robi will full back you up on that , just cont think off the word last day .... “Traspaso”
love to know what your buying .... becare full off the bar bussines as it cut trouth
books can be fixed so look lke its the place hopping and i sen a rent a crowed in few pubs

jurdy

many thanks robi luckily its not a bar we are thinking of buying its a Laundrette & Service Laundry which is leasehold for 60000 euros and 880 rent per month. what i was not sure about was the money for the leasehold i thought you had to pay for the lease again at the end of the year 5. I’ve been in touch with the owner he has been there 4 years now.but aim slightly worried because the owner of the business wishes to keep the sale confidential and viewings to be strictly by appointment. so is he the owner or the tenant something that a good solicitor will tell me aim sure. the owner say he has outside private clients and has service laundry contracts with several Timeshare and Property Management companies in the surrounding area The premises are held on an indefinite lease, renewed every 5 years, at a rent of ?800 per month. but if we wish to sell after 5 years, do we get the money back from the sale of the lease or if not, are we tied in to it for another 5 years

good momey in Laundrette & Service Laundry if you get the right heads in so you do all the dirty Laundry (not money think lol ) as to see the books and see what kind off yearly turn over is like and them improve it then , 800 euros + wages +water bills and so on , add it all up you need to turning 1400 - 2000 euros to make a living there

do think off all the bills you get taxes vat and so on

jurdy

The normal thing would be for you to either sell on the lease (and get you money plus hopefully profit back) or to renew (without further premium) and negotiate a new rent. But again I emphasise get a good (and independent!) solicitor and make sure you 100% understand the contract terms and conditions. IF YOU DONT - ASK OR DONT SIGN!

Very good advice above!!! ASK QUESTIONS!!!
It is not strange for a business owner to not let their sale to be public knowledge for fear of loss of staff and existing contracts. For the price I would assume that you are looking to purchase a traspaso (lease) and so the landlord of the unit must present a new contract to you which will have specific terms and conditions (i.e. whether the rent increases yearly, whether you are responsible for community fees, insurance on the unit etc. etc.) the old contract can be used as a guide but be sure to get any contract that you are being presented with to sign for the purchase of the unit to be checked and verified incase the terms and conditions change between you and the previous owner. Most traspaso (lease) contracts give you the opportunity to sell the business on after a certain time period (i.e. to sell it after 1 year or longer) this is where you would receive some/all/more of your original investment back. It is very rare for a contract to have an increase payment after it has been completed and is to be extended for a longer period of time, however it is usual that the rent will go up by a fixed amount (often I.P.C. which is similar to inflation).
Take your time ... don’t rush and keep asking questions if you are unsure!
Good luck and let us all know how you get on!
Phil

I think ‘trapasso’ includes the amount and quality of business sold, therefor if the existing business is doing well, has a vast clientel and is known in the market, then it will have a higher trapasso. You are paying for the business generated, its customer base. This is why you should be able to chck the books and seller should have no probs in letting you know all ins and outs. ANd this means the real numbers and not the unofficial ones.

another option is to rent out premises without a trapasso and start out from scratch. This may not be possible for laundrette but in my case I will be opening a clothing store and have no intention in buying out an exisiting store but starting from scratch (I mainly work online) thus am hopeing there is no regularions for this (hope I am not forced to buy a lease ) - anyone know more about this?

Good luck !

Claudio