A Guide To Buying A Business in Tenerife
Please be assured that we at Business Finder Tenerife will not attempt to pressure you in any way to make a decision to purchase during or after your visit. You decide yourself in your own time, usually after your return home, after careful consideration and discussion with your family and friends.
Tenerife Business Buying Steps | |
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Should you decide to proceed further in buying a business and can agree a purchase price with the seller, we will prepare a simple "option" contract written in English which, when signed and received by our office together with a deposit will secure the business to you.
The contract will state the name and address of the business in Tenerife, the buyers and sellers details, payment terms and a completion date. The deposit is normally €5,000 or 10% of the purchase price, whichever is the most and will be held in a dedicated client account with Banco Santander pending satisfactory completion
The contract is designed to protect you as the seller agrees to remove the business from public sale to your benefit for the period of the option and cannot sell to any other party. Should any problem be discovered with the transfer of licences, etc., then your deposit will be returned in full.
Your fiscal advisor or lawyer will negotiate the new lease/rental contract or title deed, confirm the licences are in order, and that all service bills, rents, rates & taxes, etc are paid to date. Should there be any debts outstanding at the time of completion we will deduct them from the completion monies before transferring the balance to the seller.
For a normal business transfer in Tenerife, for example a small bar, it is best to allow approximately 1,500€ for legal charges plus local taxes & town hall charges which you pay direct to your lawyer. Your legal fees will include the new lease contract on the premises, licence transfers, plus your tax, social security and tourist board registrations. In short every piece of paper you require to take over and run a business, and to live on Tenerife.
Upon your return to Tenerife we will endeavour to assist you to find accommodation, introduce you to local tradesman and suppliers as you may require and generally help you settle in to your new lifestyle as best we can. We will be here to help you for as long as you need us.