How to create your own bar

Some practical information on starting a bar in Spain, including tips on buying an existing bar and starting a bar in Spain from the ground up.

According to Wikipedia, “Spain has more bars per capita than any other country in the world.” This means there are lots of bars for consumers to choose from and that your bar is in good company, but unfortunately, that there’s plenty of competition. Yet many people do manage to make their bar work, and you may be able to do so too. Whether you’d like to buy an existing bar or start your bar from the ground up, read on for those important tips on how to start your bar in Spain.

Buy a Bar in Spain

Buying an existing bar in Spain could be the answer. There are plenty of bars for sale in Spain to choose from and that way you won’t have to worry about putting the bar together, buying equipment, hiring staff, creating a winning formula or reinventing the wheel. Most of the heavy work has been done already, but don’t neglect to seek the advice of a good lawyer or you might end up buying something you’ll regret! And make sure you notify your town or city hall (ayuntamiento) when you’re the bar’s new owner.

Here are some things you should keep in mind when shopping for your bar:

Why do the current owners want to sell their bar? Be sure to find out their real reasons. If the owners are looking to retire or have other life reasons that justify the sale, that’s good. But if the owners are looking to unload a bar that is la waste of money...not so good. This may not be apparent at first sight either. You’ll need to evaluate each bar and its financial records carefully. No matter how much potential you may think a particular bar has, turning a money-losing bar into a profitable affair isn’t very likely. 

Make sure you get a total picture of the bar’s financial health. Ask to see the bar’s financial records and go over them with a knowledgeable financial professional. You need to know what you’re getting into and you don’t want to be surprised if expenses are higher than you thought and/or profits are lower than you expected. Ask the owners if the bar will need any capital improvements soon, repairs or other expenses that won’t be reflected in the current list of expenditures. Does the bar have any debts? If so, find out the exact terms, as you will become responsible for them. 

Licenses. Make sure that all the current licenses are in order, and don’t just take the owners’ word for it. Have your lawyer verify them. If you decide that you’d like to add something (i.e. live music) that the current bar isn’t licensed for, find out if and how you can obtain such a license; don’t just assume that you’ll be able to.

You’ll need a license for that."

Start a Bar in Spain From the Ground Up

To start a bar in Spain from scratch, you’ll need to start a company (or do what’s sometimes called “going autónomo”), if you are by yourself,you will have to pay taxes in the local townhall as a freelance, or if you prefer to associate you will create a company (SA, SL...) and pay taxes, and register like that.

Alcohol License

If you’d like to sell alcohol, and you probably will, you’ll need to get an alcohol license from your town or city hall (ayuntamiento).  

Music Licenses

If you’d like to have music in your bar, you’ll need a license for that. There are separate licenses, however, for live music and recorded music – the recorded music license being easier to get. Check with your town or city hall (ayuntamiento) to obtain a music license. 

Food Handler’s Certificate

If your staff will be handling food, each person will each need to have a Food Handler’s Certificate (called a carnet de manipulador de alimentos), which requires attending a course and passing a test. Check with your regional government (comunidad autonóma) on how to obtain this certificate. 

Menus

Make sure that your menus are available in several languages. Spanish, English and the local autonomous language (i.e. Catalan, Valencian, Basque, Galician) would be the minimum, as it may be illegal if you don’t. If you want your menus to be available in additional languages (i.e. French, German, Japanese), that’s just icing on the cake. 

Resources

Here are some possible leads for starting your bar:

Fotocasa.es – A Spanish real estate classifieds site with commercial property for sale, rent, or traspaso

Loquo.com – A Craigslist-type classifieds site that includes commercial property for sale, rent, or traspaso

Spaincorp.com – Buys and sells existing businesses in Spain

Spanish.Businessesforsale.com – Site for buying and selling existing businesses in Spain and several other countries

But whether you opt to buy an existing bar in Spain or create your bar from the ground up, make sure you seek adequate professional, legal and financial advice as you would with any other investment venture, and try to have some fun!