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Business Terminology

The Difference Between Leasehold & Freehold

For many people purchasing a business here in Spain they will encounter leasehold and freehold opportunities, and when walking down any street you will notice signs in business premises "Traspaso", which is Spanish for a leasehold sale. A leasehold purchase you are buying the "business" and the fixtures and fittings and a freehold purchase you are buying the building, the land it sits on plus the business.

What's S.A.V.?

​S.A.V. is stock at valuation.​ Normally when a business is purchased the vendor does a stock take on the day of sale and the stock is paid for on top of the business sale, discussions prior will give the purchaser an indication of the approximate value (cost price)

What is Gross Profit and Net Profit?

Gross profit is the difference in value between the revenue generated by a product or service and the cost of producing it and generally includes things such as materials, distribution costs and labour costs. To sum up, gross profit represents the amount of value gained from the sale of a product or service.

However, gross profit doesn’t account for other costs, such as operating expenses (which are deducted to give operating profit) or other overheads, taxation, interest and payroll (which are deducted to give net profit).

Net Profit is the profit after all other expenditure has been deducted and is the money the business has actually made for the financial year.

Frequently Used Business Terminology - 5.0 out of 5 based on 1 vote

Considering Buying a Business In Spain?

There's so much to consider when contemplating purchasing a business in Spain. Not only are you probably going to be a business owner for the first time but also be living in a foreign country for the first time, all very daunting and confusing but equally exciting! Once you put all these "ingredients" into the pot you soon realise there is an incredible amount to plan for, what kind of business will suit, what area of Spain, find accommodation, schools, the list is endless! This is exactly the reason you should choose a reputable business broker, that knows the in's and out's of how it works in Spain, Business Broker Spain is very well established and more importantly trusted to guide you all the way through the process.

Not only do we advise you on the business but we are here to make your transition as smooth as possible, we can help with you acquiring your NIE number, this is simply an identification number for foreigners which you may have already as it is needed for many purposes such as renting or buying a property and it's one of the first things you do to get the ball rolling. We can introduce you to lawyers and accountants, foreign exchange experts and our advise is simple, always use a trusted lawyer before committing to a purchase.

The hard work in your research and all the anxiety will be worth it in the end, if you follow our advice and that of your lawyer. The rewards of a new life in the sun await you, don't be put off by the enormity of the move, we are here to help and help you be successful in business and your new life, our motto is work hard but play hard!

Considering Buying a Business In Spain? - 5.0 out of 5 based on 1 vote
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