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View Full Version : How much does it cost to rent a small shop in Tenerife?



anthony1989
20-09-2012, 13:30
Could anyone tell me how much rent on a small shop would be like a BUTTY-BAR! Size?????? Like the lowest and highest Thankyou

atlantico
20-09-2012, 13:54
expect it depends upon location etc, but for a small side street shop you'd be looking at €400-€700 a month - €1200-€1500 for a high street location !

YOUNG GOLFER
20-09-2012, 14:10
Just remember when looking for a small shop or local make sure you don't pay the asking price............tell the Agent or Owner you will pay 6 months up front or even a year if he or she comes down in price.

I once went for a office the price was 550 euros a month after saying i would pay 6 months up front I got them down to 400 a month but make sure you don't do this on your own make sure you have a Gestor/Lawyer look at the contracts to make sure what you are signing is what you have agreed.
Also bear in mind you will have a retention tax to pay on top of this.

atlantico
20-09-2012, 14:44
Retention tax should actually be DEDUCTED from the rent. Its an income tax on the rental total, not an added tax. so €400 a month LESS tax (its the tenants responsibility to pay this) but Spanish Landlords make tenants believe that its an ADDED tax. Any shop tenants ask their gestor about this.

example : If you pay €400 plus 20% Retention tax (as example) thats €480, but the Hacienda will think that you pay €480 LESS 20% which is €96 - and so you're underpaying and can be liable for the €16 shortfall.

CIM
20-09-2012, 15:27
Retention tax should actually be DEDUCTED from the rent. Its an income tax on the rental total, not an added tax. so €400 a month LESS tax (its the tenants responsibility to pay this) but Spanish Landlords make tenants believe that its an ADDED tax. Any shop tenants ask their gestor about this.

example : If you pay €400 plus 20% Retention tax (as example) thats €480, but the Hacienda will think that you pay €480 LESS 20% which is €96 - and so you're underpaying and can be liable for the €16 shortfall.

It is a simple enough calculation to work out the total amount and how much should be paid to the Hacienda. All Spanish landlords I have ever spoken to quote the rental plus retention. Most will give you a blank stare if you try and negotiate it any other way.

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Rents have also fallen recently but you need to really do your homework to find good value as many landlords are happy to sit and wait for a "green" idiot from abroad to turn up and pay way over the odds.

TF1
20-09-2012, 17:18
Could anyone tell me how much rent on a small shop would be like a BUTTY-BAR! Size?????? Like the lowest and highest Thankyou
Approximately twice what you´d be likely to earn at the moment, so take your time negotiating a BIG discount if you want to survive.

Javi
21-09-2012, 22:28
How bad are Spanish landlords!:devil:...but however, they are willing to negotiate...quite suspicious, isn't it?:wink2:

KirstyJay
21-09-2012, 22:36
Could anyone tell me how much rent on a small shop would be like a BUTTY-BAR! Size?????? Like the lowest and highest ThankyouIt's like asking how long is a piece of string....? Basically you need to think about how much profit you expect to make and how much you can afford to pay out, then think whether location is important. Do you need footfall past the establishment? If you do , it'll cost more. If not, find a local out of town and you'll save 100s. Then ask around... negotiate until you get your price, or don't do it and leave them tennant-less, but do not compromise on your business plan. :)

anthony1989
22-09-2012, 00:11
I'm looking at going out there for a week soon to see what I can find and just to do ABIT more research really as I know prices will vary a lot in a place like this

carpenter
22-09-2012, 00:49
One big difference you may not know about are the social payments that you have to pay each month without fail regardless of whether or not you have made a profit.

The UK has basic, rent, insurance, water , electric and tax on profit. If you don't earn a profit you don't pay any money

Here There is rent, Social approx €270 per month (REGARDLESS OF PROFIT OR ANY EARNINGS AT ALL), tax on earnings, insurance, water , electric, and if you want to employ someone it'll cost approx €150 per month before wages, and the paper work Jesus!!!! If you want to open a food establishment everything must be up to scratch, correct extraction system, correct electrics, fridges and freezers inspected, the equivalent of the health inspectors on your case. Anthony it's a headache.

Do not go round yourself, take a local expert with you, I can recommend someone to you here on the forum who really knows his stuff.

The social system here is a killer and you have to have it to trade.

It's not as easy as finding a local "shop" in the right place for the right money. The landlord will push you to sign a contract and as you do not want to lose it you'll probably sign and then after you submit your paperwork and you've spent your money kitting it out someone in the town hall says "you can't put that sort of business there"

The fact that it may have been a similar business before doesn't make a blind bit of difference.

It happened to me. All except the pushy landlord bit.

anthony1989
22-09-2012, 11:06
One big difference you may not know about are the social payments that you have to pay each month without fail regardless of whether or not you have made a profit.

The UK has basic, rent, insurance, water , electric and tax on profit. If you don't earn a profit you don't pay any money

Here There is rent, Social approx €270 per month (REGARDLESS OF PROFIT OR ANY EARNINGS AT ALL), tax on earnings, insurance, water , electric, and if you want to employ someone it'll cost approx €150 per month before wages, and the paper work Jesus!!!! If you want to open a food establishment everything must be up to scratch, correct extraction system, correct electrics, fridges and freezers inspected, the equivalent of the health inspectors on your case. Anthony it's a headache.

Do not go round yourself, take a local expert with you, I can recommend someone to you here on the forum who really knows his stuff.

The social system here is a killer and you have to have it to trade.

It's not as easy as finding a local "shop" in the right place for the right money. The landlord will push you to sign a contract and as you do not want to lose it you'll probably sign and then after you submit your paperwork and you've spent your money kitting it out someone in the town hall says "you can't put that sort of business there"

The fact that it may have been a similar business before doesn't make a blind bit of difference.

It happened to me. All except the pushy landlord bit.

Well you've just turned my smile upside down:( lol but its definitely better to know now rather than when it's too late Thankyou

TF1
22-09-2012, 11:27
By all means take a week and look around, but follow the forum members advice; make a business plan including staff overheads, then make a shortlist of locals which can be negotiated to fit that plan. Then, check with the town hall (you´ll need help for this) to verify your business activity is accepted at each location. If you plan everything correctly and have a financial safety net, you´ll have a reasonable chance of success.
Good luck! ;-)

cainaries
22-09-2012, 13:47
Following the experience of two friends, please also remember that if you ask if something is acceptable at the Town Hall and they give a verbal 'yes', this 'yes' will not necessarily translate into a licence. Sorry to be negative again, more of just a tip.