Purchasing a business in Spain can be an excellent way to settle in the country. This option allows non-European citizens to invest in an existing business, start their activity immediately, and apply for legal residency. However, it is essential to fully understand the requirements, properly evaluate the business, and comply with immigration procedures.
In this guide we explain how to do it step by step and what legal aspects to take into account to invest safely.
Despite what people tell you, in order to emigrate to Spain for the purchase of a goodwill, an investor or entrepreneur visa is not required. It is the self-employed work visa you have to apply for. When you buy a goodwill, you are not going to create a company or start a business. You are going to work for yourself.
Buying a trade or business in Spain is called "business transfer".. This is something to keep in mind when looking for retailers for sale on Spanish websites.
The amount to be invested
There are prices for all tastes and wallets. From a hairdressing salon in Seville for 2,500€ to a restaurant in the heart of Barcelona for 375,000€.€. These amounts are more accessible than those required to obtain residency for investment visas, which have a minimum of 500,000€.
When choosing which one to buy, the key is that the business has consistently generated good income in recent years. The Spanish government ensures that you can support yourself.
Shops for sale in Spain
There is a great variety of advertisements of sale of trades funds all over Spain. The range of prices and items is very wide. Let's see some examples:
- Restaurant in Madrid, 260m2, capacity for 112 people. 80.000€.
- Aesthetic center in Barcelona center, 100m2. 110.000 €.
- Factory of interior carpentry and installations in Valencia. 165.000€.
- Fishmonger in Bilbao, 120m2. 150.000€.
- Hairdresser in Barcelona, 80m2 and 9 chairs. 57.000€.
We could go on with an extensive list. But you'd better search according to your interests and budget. There are several websites with advertisements for the sale of business funds. Search “traspaso de negocio en España” (transfer of business in Spain) and you will get a lot of results.
The purchase of a franchise also serves to settle in Spain. And it may make the whole process easier, although the sale prices are higher. Some websites selling shop and business in Spain do not include franchises, so you will have to do a specific search for franchises.
Billing data, let alone profitability, are not usually published in the advertisements. You must request them when contacting them. Sometimes the reason for the transfer of the trade or business is that it is not working well. Those with a high turnover are not usually sold by their owners. Or they do it for a high price. The deep and detailed analysis of the information will allow you to move forward safely.
Steps to purchase a business and apply for residency
1) Search for a business
The first step is to search the internet for businesses for sale. You won't immediately find what fits your situation. There are too many offers published and filtering what might be valid takes time. Anyway, it will help you to start knowing the selling prices, types of businesses offered and how the operation is carried out. You can look at businesses for sale all over Spain, to get a better understanding of the market. But it is advisable that you choose the area taking into account the economic activity of each city or region, where you have friends or where you would like to live.
Keep in mind that there are areas of Spain where economic activity is far from thriving and unemployment is high. It is clear that businesses for sale there will be cheaper. But you may be buying a problem, not a solution.
2) Legal and economic analysis
When you find a business that fits your experience and budget, it will be key to get accurate information about turnover, business licenses, rental cost, taxes. The seller must give you official documentation, e.g. your tax return, lease of the premises. Do not hesitate to ask for all the necessary data. And it is important to have the data of the last five years, at least, because the government analyzes the trajectory of the business to evaluate if it grants the visa or not.
The next step is to calculate if the profitability of the business is enough to support you in Spain. The amount of money will depend on each person, whether he/she comes with family or alone, and the city where he/she is going to live. For your reference, a family of four that settles in Spain on a non-profit visa -that is, they will live on income or savings and will not work- is required to pay a little more than 4,600 euros per month.
The Spanish government also considers your experience in the line of business you are buying when deciding whether to grant the visa.
3) Preliminary agreement
If the numbers add up and the business convinces you, you will have to decide whether to travel to see it or delegate it to a trusted friend, family member or professional. It is a personal decision you will have to make. Visit us at it is advisable to travel to get to know the business,the area, your customers. At the end of the day, it will be your livelihood and the city where you will live.
If you decide to buy and there is an agreement on the price, then a pre-contract is signed with the seller. With this pre-contract, you can apply for a self-employment visa. This is done at the Spanish consulate closest to your usual place of residence. When your visa is approved, it confirms to the seller that you are buying their business.
4) Request residency for the purchase of a business
To apply for a self-employment visa for the purchase of a business in Spain, you'll need to submit information about the business you're looking to purchase and the pre-purchase contract. You'll also need to meet these requirements for foreigners purchasing businesses in Spain:
– Present the technical and legal business plan.
- No criminal record in Spain and in other previous countries of residence.
- Not to be irregularly present in Spanish territory.
- Fulfill the requirements that the current legislation demands to the Spaniards for the opening and operation of the projected activity.
There are more requirements, which we recommend you consult on the Spanish government's website.
5) How to transfer the money
To make the payment for the purchase of the business, you must first open a bank account in Spain and transfer the money from your account in your country. To open a bank account in Spain as a foreigner, you need your passport and the Non-Resident Certificate, which is required at Spanish police stations.
What will you have to do once in Spain?
Once the visa has been obtained, You must enter Spain within three months. And then you will have three more months to register with the Social Security. It is at that moment when the initial authorization for temporary residence and self-employment becomes effective. Once you are registered, you have one month to apply for the Foreigner's Identity Card.
It is important to clarify that the self-employed work visa only authorizes the applicant to reside in Spain. If there are accompanying persons - spouses, children - they must apply for a non lucrative residence visa, or wait one year to be able to settle in Spain.
Common mistakes when buying a business
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Failure to verify prior debts or charges
Many buyers don't investigate whether the business has debts to suppliers, the Treasury, or Social Security. These debts can be transferred to the new owner unless otherwise agreed. -
Lack of clear contract
Purchasing without a detailed sales contract can lead to legal problems. It's essential to define what you're buying: premises, furnishings, licenses, customers, business name, etc. -
Failure to check licenses and permits
Some businesses operate with specific licenses from the previous owner that are non-transferable. It's crucial to confirm that they can be maintained or renewed. -
Not making a real valuation of the business
Many buyers overpay for businesses with no stable income or limited prospects. A prior financial analysis is key. -
Skip location analysis
The area can significantly affect business performance. Factors such as urban changes, competition, or lack of foot traffic can all hinder investment. -
Ignoring immigration requirements
Purchasing a business does not automatically guarantee residency. You must meet the requirements for a self-employed visa (business plan, financial means, etc.). -
Lack of legal and tax advice
Many problems can be avoided by consulting a lawyer before signing. A professional can review the business's contract, licenses, and tax status.
How can MBT Abogados help you?
At MBT Abogados, we specialize in advising foreigners who wish to establish themselves in Spain through the purchase of a business. Our legal and tax team will assist you at every stage of the process to ensure a secure investment that is geared toward obtaining legal residency.
We help you with:
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Legal review of goodwill and its assets.
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Verification of debts, licenses, and business tax status.
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Drafting and reviewing the sales contract.
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Preparation of a business plan for the self-employment visa.
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Processing your visa and that of your family.
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Tax advice on investments and their tax impact.
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Representation before notaries, registries and immigration authorities.
Do you want to make a safe and well-planned investment to settle in Spain? Contact us via WhatsApp or email and we'll offer you a free initial evaluation.
FAQs
- Can I get residency just by buying a business?
Yes, as long as the project is viable, supported by documentation, and you meet the other immigration requirements. - How much money do I need to invest?
There is no legal minimum amount, but we recommend having at least €40,000-50,000 to cover the purchase, initial working capital and migration costs. - Does the business have to be 100% active?
Not necessarily. It can be temporarily closed, but it must have a valid license, equipment, a history of operation, and an available space. -
Can I buy a business as a tourist in Spain?
Yes, it is possible to begin the process while you are in Spain as a tourist, but to apply for residency, you must submit the corresponding application and meet the visa requirements on your own. -
Does the business include the commercial premises?
Not necessarily. Goodwill can include customers, furnishings, permits, branding, and other intangible assets. The premises may be rented and require a transfer or new lease. It's key to review this point in the contract.
