Should You Open A Business In Spain?

It is a dream for many Brits to live and work in Spain. Many of them are attracted to the country after spending a holiday on the Mediterranean coastline, and believe that a move to Spain would result in a better lifestyle, and they would be able to experience the fun they had on holiday on a daily basis. However, while living and working in Spain can bring many benefits you need to look at the situation more realistically and take off your rose-tinted glasses before making a decision.

The fact is, Spain currently has a very high unemployment rate, and has still not fully recovered from the recession that hit the country hard in 2009. Many businesses had to close their doors during the last five years, and opening a new business in the country needs careful thought.

According to Paul Jacobs, owner of the number of foreigners who come to Spain from the UK with the idea of owning a bar is quite staggering, when you consider that most of them have absolutely no experience in running a bar. While there are no specific qualifications required to run a café or bar, but to be successful in the trade you do need to have a certain type of personality and be very patient.

You will be dealing with people who have drank far too much on a daily basis and will need to know how to react in certain situations. Running a bar is extremely hard work and you will have to be prepared to work very long hours. Because of the number of bars in most areas and the competition factor, your profit margins probably will not be very large. Hiring staff in Spain is quite expensive due to the high social security costs, which are paid for by the employer and you probably will have to do most of the work yourself, at least when first starting out.

On the plus side, Spanish property at the moment is still reasonably cheap, and if you decide to move to Spain to live or work you can find many bargains even in the more expensive regions such as Barcelona and Javea on the Costa Blanca. Therefore, if you plan on buying a business as opposed to renting, even if things do not work out well you are likely to make a profit in the event you will be selling a few years down the line.