12-Nov-2024
Buying property on the coast near Barcelona - how to choose?
Buying a property on the coast near Barcelona is a great opportunity for those who dream of living by the sea, surrounded by nature and Span...
Is it profitable to purchase a ready-made business in Barcelona and what kind of income can you get? Let's look at the key options and analyze whether it is worth investing in this area, as well as the pros and cons of buying an existing enterprise in Spain.
Of course, you can buy or sell any existing enterprise, regardless of its field of activity, be it a small cafe or a large company. All types of business are divided into two categories:
Beginning investors, as well as those who already have experience in doing business, but have just arrived and are taking their first steps in Europe, are recommended to choose the first option, as it is safer. For example, passive income can be provided by purchasing commercial real estate for subsequent rental.
One such investment could be investing in a space with an existing tenant, such as a store or restaurant. The most reliable tenants are considered to be chain enterprises, such as grocery supermarkets and fast food brands - MacDonald's, Burger King and others. It could also be a national or global brand clothing store, a bank branch, and so on.
There are a wide variety of offers on the market. Although you can find cheaper options, it is more correct to start considering the purchase of commercial real estate from 500 thousand euros. An investor who has invested such an amount can count on receiving a so-called “golden visa” for himself and his family members, which will greatly facilitate the management of the enterprise in the future.
In Spain there are two ways to acquire an existing business. The first option is to purchase a company, which implies a change in the owner of the legal entity. This method helps optimize costs and significantly reduce the tax burden due to confirmed expenses.
However, purchasing a company may carry certain risks: it is necessary to ensure that there are no debts to counterparties, tax authorities and the social insurance system.
The second option is to purchase commercial real estate as a private person. This method is simpler, but also has its own nuances, so it is important to consult with experts in advance, including tax issues in the future.
Commercial real estate is considered to provide higher returns compared to rental housing businesses. Investors can expect income ranging from 4 to approximately 10-12 percent in stable European currency, which is formed from rental payments and possible profit from the subsequent resale of the property. However, the second part of the income is never guaranteed. Therefore, it is extremely important to plan your actions in advance and consult with market experts. You can view current offers in our private database.
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