In Ibiza most high-street businesses are not sold — they are transferred. The unit belongs to a landlord who does not want to sell, the tenant leaves and hands their position to another operator for a price. That price, the traspaso, can be the best way into island retail and hospitality, or the most expensive mistake of your career, depending on what you are actually buying.
1. What you are actually paying for
- The right to occupy the unit by stepping into an existing lease, with its rent and its remaining term.
- The activity licence already granted — in hospitality that alone is worth months of calendar.
- The fit-out and installations: extraction, air conditioning, electrics, plumbing.
- Furniture, kitchen and equipment, per inventory.
- The terrace authorisation, where one exists and is transferable.
- In some cases the brand, social accounts, reviews and customer base.
What you are not buying is the property itself: the unit still belongs to the landlord and you keep paying rent.
2. Traspaso or buying the unit: two different strategies
| Aspect | Traspaso (leasehold) | Buying the unit |
|---|---|---|
| Upfront investment | Medium | High |
| Recurring cost | Monthly rent | Property tax and community fees |
| Time to open | Fast, licence already in place | Slower if legalisation is needed |
| Main risk | Lease expiry and rent increases | Tying up a lot of capital |
| Exit | A new traspaso | Sale or letting of the asset |
If the business is the goal, a traspaso usually makes sense. If the goal is building assets, buying the unit and letting it to a solid operator is what creates long-term value.
3. Checks before you sign
- The lease: years remaining, extensions, rent review mechanics and — crucially — express permission to transfer.
- The landlord's rights: Spanish law lets the landlord raise the rent when a commercial lease is assigned. Ask how much it will rise before you build your P&L.
- The activity licence: valid, covering exactly the activity you intend to run, and transferable to your name.
- Authorised capacity, permitted hours and any noise or music restrictions.
- Legalised kitchen extraction, if it is a food business.
- Terrace: current authorisation, number of tables and renewal.
- Debts: utilities, community fees, municipal charges and approved levies.
- Staff: continuing the same activity can trigger business succession, with employees transferring along with their seniority. Review the payroll before, not after.
- A signed inventory and the real condition of the equipment: a ten-year-old kitchen can need €40,000 in its first winter.
4. What a traspaso costs in Ibiza
It depends on the street, the licence and what is left in place. Indicative ranges:
| Type of unit | Indicative traspaso |
|---|---|
| Small shop in a secondary area | €20,000 – €60,000 |
| Retail on an established shopping street | €60,000 – €150,000 |
| Bar or café with licence and terrace | €100,000 – €250,000 |
| Restaurant in a prime port location | €250,000 – €600,000 |
A simple sanity check: compare the traspaso with the annual profit the business can realistically produce. If it takes more than three or four seasons just to recover the transfer price, revisit the numbers.
5. Tax and paperwork
The deal is documented in writing, normally with the landlord signing their consent to the assignment. Depending on how it is structured — assignment of the lease, sale of a going concern, or transfer of shares in the operating company — the tax treatment varies considerably, and with it the VAT or transfer tax that applies. This is precisely the point at which you want a tax adviser involved before signing, not after.
6. Common mistakes
- Paying for a summer clientele that in truth followed the previous brand, not the location.
- Signing with two years of lease left and an investment that needs five to pay back.
- Accepting a licence that does not cover the activity you intend to run.
- Not asking for accounts or real turnover: in a serious traspaso, the numbers are shown.
- Forgetting that the rent will rise after the assignment and that the building may have levies already approved.
7. How we support you
- We source transfers that fit your activity and budget, on and off the published market.
- We review lease, licences, terrace and debts before you hand over a deposit.
- We negotiate the terms of the assignment with landlord and outgoing tenant.
- We assess whether the transfer price is consistent with real turnover.
- We coordinate lawyer and tax adviser so the deal closes properly documented.
Conclusion
A good traspaso saves you months of licensing and a full fit-out. A bad one ties you for years to an expensive lease on the wrong street. The difference is always in what you check before signing.
Considering a traspaso in Ibiza? Get in touch and we will analyse it with you before you commit to anything.
Note: informational content. Every deal has its own legal and tax particularities; always consult a lawyer and an adviser before signing.
