Having recently moved to Spain, I’ve been thinking about starting my own small business. I’ve spent a lot of time lately researching how to rent a commercial space, and I’ve discovered there’s a lot to it, especially when it comes to costs, which are very different from renting a regular apartment. Today, I’m sharing a checklist of the expenses I’ve put together for renting a storefront, hoping it will help other aspiring entrepreneurs.
Main Cost Components
Opening a shop is about much more than just paying the rent. I’ve broken down the main expenses into several key areas for your reference:
1. Lease-Related Costs
This is the largest fixed expense when renting a commercial space in Spain to open a shop. The monthly rent you see on agency websites is often just the tip of the iceberg.
- Security Deposit (Fianza): By law, this is 2 months’ rent. This money is deposited with the regional government and is refundable at the end of the contract.
- Additional Guarantee (Garantía Adicional): This is an extra deposit requested by the landlord to mitigate their risk. The amount is negotiable and can range from several months’ rent to a bank guarantee (aval bancario). Landlords may ask for a higher amount from new companies or foreign tenants.
- Agency Fee: This is typically one month’s rent + 21% VAT (IVA). Some agencies might charge 10% of the annual rent.
- First Month’s Rent: This one is self-explanatory—the rent for the month you sign the contract.
So, just to secure the lease for a space with a monthly rent of €2,000, you might need to pay upfront: 2,0002 (deposit) + 2,000N (additional guarantee) + 2,000*1.21 (agency fee) + 2,000 (first month’s rent). And that’s a conservative estimate!
2. Fit-Out and Licensing
The costs vary drastically between renting an empty shell (local en bruto) versus taking over an existing business.
| Expense Item | Estimated Budget | Notes |
|---|
| Renovation Work (Obra) | €5,000 - €50,000+ | Depends on the property’s condition and your requirements. This can be a bottomless pit. |
| Technical Project Plan (Proyecto Técnico) | €1,000 - €4,000 | A required document by an architect or engineer for applying for the activity license and building permits. |
| Activity License (Licencia de Actividad) | €600 - €2,000+ | Fee charged by the city council (Ayuntamiento), varies by size and business type. |
| Utility Connections (Agua, Luz, Gas) | €300 - €800 | A connection fee is required if you are setting up new accounts. |
A standard retail shop or café of around 80 square meters in downtown Madrid or Barcelona, starting from scratch, you’re looking at a realistic starting investment of €30,000 to €50,000 before even stocking inventory. If your situation involves a business transfer (traspaso), which can affect the overall costs of opening a shop in Spain, you can save a lot on renovations and licensing, but the one-time transfer fee itself is a significant expense. I hope this post gives you a basic overview. Experienced folks, feel free to add your insights and corrections!
