Where buyers get caught out
In a traspaso the buyer pays a large premium for a business whose lease ends soon, whose licence does not cover the real activity, or whose landlord can refuse the assignment. The premium is lost if the business cannot continue.
What we check
| Area | What we check |
|---|---|
| Activity licence | That it exists, covers the real activity, capacity and hours, and can be transferred |
| Lease | Term, rent reviews, assignment, landlord's rights, guarantees |
| Premises | Planning use, works without licence, terraces |
| Concessions | Beach and coastal concessions and their duration |
| Liabilities | Staff, taxes, suppliers and pending sanctions |
Buying a building or leasing premises
Buying commercial property follows the same steps as any purchase, with added checks on permitted use and existing tenants. Leasing premises is governed mainly by the contract: rent, duration, deposit, works, assignment and what happens at the end. We negotiate leases for tenants and landlords.
Transfer of a business
When you take over a running business, we review whether the lease allows assignment, what the landlord can claim, whether the licence can pass to you and which liabilities remain with the seller. The contract should list assets, staff and debts and include guarantees.
Hotels, agroturismos and tourism businesses
Tourist accommodation needs its own authorisations, separate from holiday rental licences. Rural hotels and agroturismos on rustic land must comply with specific rules. See tourism and rental licences and business lawyer in Ibiza.
For disputes with landlords or sellers, see property disputes. Ibiza.law is the Ibiza practice of Castell.law.
An illustrative example
Based on situations we commonly see; not a specific client. An investor was offered a beach bar near Sant Antoni with a high premium, presented as 'with all licences'. Our review showed that the terrace was on public land with a municipal authorisation renewed each year, that the music licence did not exist and that part of the business depended on a coastal concession nearing its end. The investor used the report to renegotiate the price and make part of it conditional on the authorisations being renewed. Without the review, they would have paid for rights the seller did not have.
Before you sign or pay, ask a lawyer
Send us the document, the listing or a short summary of the problem. A lawyer will tell you what matters, what it could cost you and what to do next.
Questions about commercial property in Ibiza
Can the landlord stop a business transfer?
It depends on the lease. Many leases require consent or give the landlord rights on assignment, so this must be checked before paying any premium.
Does the activity licence transfer with the business?
Usually it can be transferred by communicating the change of holder, if the licence matches the real activity and premises.
Are commercial leases regulated in Spain?
Mainly by the contract, with the urban leases law applying where the contract is silent.
Do you act for landlords too?
Yes, we draft and negotiate leases and handle claims for both landlords and tenants.