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True cost of buying a lease
September 2008

The purchase of a lease (Trespaso) is the way most people start their business life in Mallorca.  Purchasers are always surprised at the amount they have to pay in addition to the lease price. We have attempted here to give you a reality check of what it will actually cost including legal fees.

Agreed price for the lease
Plus
IVA (VAT) @ 16%
Plus
Two months security deposit on the rental
(This is retained by a lawyer and refunded when you give up the lease).
Plus
At least three months rental in advance
Plus
Lawyers costs


This is an EXAMPLE of what the total cost upfront would be if your agreed price for a lease was €30,000 plus €1000 per month rent.

Price for lease
30,000
IVA @ 16%
   4,800
Security Deposit
   2,000
3 months rent advance
   3,000
Lawyers cost (Estimate
   3,500
Total
43,300

This is an EXAMPLE only, there are many variations including the need to give six months rent in advance down to being given a rent free period. Everything except the IVA (VAT) is open to negotiation.

For more information call us at Sun Search Acquisitions on 00 34 971 63 35 45.




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