Wednesday, 04 October 2017 12:36

Frequently Used Business Terminology

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.

Published in Blog
English French German Russian Spanish

Main Menu


Chain of Restaurants on the Costa Blanca South
Chain of Restaurants on the Costa Blanca South Ciudad Quesada, Alicante
Restaurant In Albir
Restaurant In Albir Albir, Alicante
Restaurant for Sale in Mil Palmeras
Restaurant for Sale in Mil Palmeras Pilar De La Horadada, Alicante
Freehold Cafe In Javea
Freehold Cafe In Javea Javea, Alicante
Unique Boutique Hotel in Murcia
Unique Boutique Hotel in Murcia Sierra de las Estancias, Murcia

FaceBook  Twitter  Google+  Linkedin