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View Full Version : Laws & Regulations Information needed about a proyecto and other requirements needed to open a business



LizzyW
04-05-2016, 06:44
Bit long winded i know as a title.
We have progressed our plan for our family restaurant and are now looking at a few premises. However, I could do with picking some brains so as not to either not do something we should be doing or on the other hand being told we have to do something when we don't!

If I wish to change the layout of a kitchen/bar can I just get a workman in to do this or does it need something more formal?
If so, is that what is being called a Proyecto?
If it is then does a proyecto need to be drawn up by a professional or is it enough to say, for example, I want to get someone in to make the bar area bigger?
Either way where does it go next and how long does it take to get that through the process?
Whilst this is happening is the property taken off the market or could you end up doing all that "process" and someone come along in the meantime and take the place?

Secondly we are being told that restaurants require automatic fire extinguishers in the kitchen area - is that only for new-build or would these be required should we go ahead and undertake some kitchen refurb?

Lastly and in relation to the point above, we have been led to believe that this would be vigourously enforced as we are English - any thought?

thanks for help

Leam_Lin
04-05-2016, 08:49
Where ever this business is, think long & hard. Sorry to sound dismal but have seen so many British people open places & lose a lot of money.

Why is it up for sale? do not take the first answer, it may be true but look & ask around yourselves.

doreen
04-05-2016, 10:18
Hi Lizzy. A few facts about running a business in Tenerife (I've looked back at some of your previous questions)

Firstly, it is a completely different system to what you will have been used to in the UK.

On payroll in general :
- the employer pays 35-40% in addition to the wage over to the Gov. So, pay someone a salary of 1,000, your costs will be equivalent to 1,400 per month.
- you must employ a gestor/administrator to draw up your wage slips - average cost 50-60 euro per employee per month. You then pay this gestor to make monthly & quarterly & yearly returns.
- if you are operating in the British sector, you will find many bars & restaurants do not give official contracts to staff in an effort to cut costs and when Work Inspectors arrive to check on paperwork, an exodus can be seen from the premises ... all completely illegal and much less likely to happen in the Spanish run sector where there is more compliance.
- a spouse cannot put their partner on the books, both must be self employed (autonomo) ... depends on age, around 270-300 euros each per month, even if takings are nil. There are schemes for a lower rate for new business - you would need to check on that
- on choosing a gestor, make sure you talk to more than one for, how shall I put this, not all are equal. We had a report here in the last week or two, when someone went to two gestors about opening a new business, one said no problem, I will have all the licences in a month, the other said - no chance of getting these licences, don't waste your money !

Your gestor will also make IGIC returns every quarter - like VAT, though in fact a local Canarian tax, the rate for bars & restaurants is 7% and must be charged even if your turnover is minimal.

If taking over a bar or restaurant premises, no matter when it was registered or given it's opening licence, the new owner must bring the premises up to the newest regulations - so yes, automatic fire extinguishers will be required along with a myriad of other things (disabled toilet etc etc)

No, you cannot just have someone in to change things around, you must apply for a licence to do the works (some don't but you can be denounced/reported for any non sanctioned work (another thing that will surprise you is just how many neighbours will denounce your business on the slightest pretence)

A proyecto must be drawn up by a professional (costs around 1,500-2000), so if you make any changes you will have to submit one for approval.

And I could go on and on :( Please think very carefully before committing to any business here in Tenerife - many of us have seen the same business change hands almost yearly (and remember, the agent you are talking to is not acting for you, he gets paid by the Seller, so he will probably minimise the difficulties you might face)

doreen
05-05-2016, 09:49
No, you cannot just have someone in to change things around, you must apply for a licence to do the works (some don't but you can be denounced/reported for any non sanctioned work (another thing that will surprise you is just how many neighbours will denounce your business on the slightest pretence)

.... and just to reiterate this point, talking to a Canarian friend last night who is doing some major works for a new bar/restaurant - fully approved by the Community and works licence in hand from Adeje Town Hall - he had to deal with the Police yesterday as there were 5 denuncias - envy, spite, who knows ? Quite extraordinary :(

LizzyW
05-05-2016, 09:53
Doreen please can you ask your friend how long the process takes to get the work approved. I will understand if you are not able to do this, but any help would be appreciated as I am not getting much information or support from the agent who is selling the property. thankyou

doreen
05-05-2016, 10:02
Doreen please can you ask your friend how long the process takes to get the work approved. I will understand if you are not able to do this, but any help would be appreciated as I am not getting much information or support from the agent who is selling the property. thankyou

He got the works licence pretty quickly but it could take time for the opening licence to be granted (you can start trading once you have applied for a licence, but you really need to know the regulations to make sure you have included what they will be asking for, if not, it is a question of stripping out and starting again)

Are you able to send me a private message to give me your email address (think you have to have to have made a certain number of forum posts first) ... happy to go through this with you and help where I can :)

EDIT ... and the name of the agent - I know many of them by reputation :)

- - - - - - - - - - merged double post - - - - - - - - - -

Another data point - I have mentioned before here that I was converting a garage space into a private office ... took 2 months for works licence to come through in Arona, that was with the architect pressing his contact as much as possible, but it was during election time, so everything slowed.

Work now completed several months ago, but cannot get the electricity connected - could be another 3 months before I can use the office :(

junglejim
05-05-2016, 13:49
Great advice and expertise from Doreen there as always, but my impression is that the amount of bureaurocracy and delay on this Island only adds to itīs demise as a place to open a business and employ people .
How investors can be bothered to spend huge sums of money only to be stymied and frustrated by pen pushers is beyond me !

Tonysoprano
21-08-2017, 13:34
Hi Lizzy. A few facts about running a business in Tenerife (I've looked back at some of your previous questions)

Firstly, it is a completely different system to what you will have been used to in the UK.

On payroll in general :
- the employer pays 35-40% in addition to the wage over to the Gov. So, pay someone a salary of 1,000, your costs will be equivalent to 1,400 per month.
- you must employ a gestor/administrator to draw up your wage slips - average cost 50-60 euro per employee per month. You then pay this gestor to make monthly & quarterly & yearly returns.
- if you are operating in the British sector, you will find many bars & restaurants do not give official contracts to staff in an effort to cut costs and when Work Inspectors arrive to check on paperwork, an exodus can be seen from the premises ... all completely illegal and much less likely to happen in the Spanish run sector where there is more compliance.
- a spouse cannot put their partner on the books, both must be self employed (autonomo) ... depends on age, around 270-300 euros each per month, even if takings are nil. There are schemes for a lower rate for new business - you would need to check on that
- on choosing a gestor, make sure you talk to more than one for, how shall I put this, not all are equal. We had a report here in the last week or two, when someone went to two gestors about opening a new business, one said no problem, I will have all the licences in a month, the other said - no chance of getting these licences, don't waste your money !

Your gestor will also make IGIC returns every quarter - like VAT, though in fact a local Canarian tax, the rate for bars & restaurants is 7% and must be charged even if your turnover is minimal.

If taking over a bar or restaurant premises, no matter when it was registered or given it's opening licence, the new owner must bring the premises up to the newest regulations - so yes, automatic fire extinguishers will be required along with a myriad of other things (disabled toilet etc etc)

No, you cannot just have someone in to change things around, you must apply for a licence to do the works (some don't but you can be denounced/reported for any non sanctioned work (another thing that will surprise you is just how many neighbours will denounce your business on the slightest pretence)

A proyecto must be drawn up by a professional (costs around 1,500-2000), so if you make any changes you will have to submit one for approval.

And I could go on and on :( Please think very carefully before committing to any business here in Tenerife - many of us have seen the same business change hands almost yearly (and remember, the agent you are talking to is not acting for you, he gets paid by the Seller, so he will probably minimise the difficulties you might face)

Hi,

I notice fire extinguishing equipment is being discussed here and any new owners must bring a premises they obtain up to a the latest regs.

Is this a fire suppression system that is required?

Example does this have to be fitted with sprinklers fitted in the roof? and hand operated extinguishers?

Also what is the frequency of tests to be carried out on these units?

And if so who is approved to fit such an installation on the island and carry out maintenance?