Where buyers get caught out
Buyers of a seasonal restaurant sometimes pay a large premium for a business whose lease ends after one season, whose licence does not cover the kitchen or the terrace, or whose landlord can refuse the assignment.
What we check
| Area | What we check |
|---|---|
| Activity licence | That it covers the real activity, capacity and hours, and can be transferred |
| Lease | Term, rent reviews, assignment, landlord's rights, guarantees |
| Premises | Permitted use, works without licence, heritage protection in old towns |
| Terraces and concessions | Municipal terrace permits, harbour and coastal concessions |
| Liabilities | Staff, taxes, suppliers, pending sanctions |
Buying or leasing premises
Buying a commercial property follows the same steps as any purchase, with extra checks on permitted use and existing tenants. Leasing is mainly governed by the contract: rent, duration, deposit, works, assignment and what happens at the end. We negotiate leases for tenants and landlords.
Taking over a running business
We check whether the lease allows assignment, what the landlord can claim, whether the licence can pass to you and which liabilities stay with the seller. The contract should list assets, staff and debts and include guarantees.
Old-town premises
In the historic centres of Maó and Ciutadella, many premises are in catalogued buildings. Changing the shopfront, installing extraction or altering the layout needs specific authorisation. See planning lawyer.
Rural hotels and tourism
Rural hotels and agroturismos on rustic land need tourism authorisations and must respect the island plan. See holiday rental and tourism licences and business lawyer. For disputes with landlords or sellers, see property disputes. Menorca.law is part of Castell.law.
An illustrative example
Based on situations we commonly see; not a specific client. An investor was offered a restaurant on the harbour of Maó "with terrace". The terrace permit was annual and had not been renewed, and the lease required the landlord's consent to any transfer. We negotiated the landlord's consent and a longer lease before signing, and made part of the premium conditional on the terrace permit.
Before you sign or pay, ask a lawyer
Send us the document, the listing or a short summary of the problem. A lawyer will tell you what matters, what it could cost you and what to do next.
Questions about commercial property in Menorca
Can the landlord block a business transfer?
It depends on the lease; many require consent or give the landlord rights on assignment.
Does the activity licence transfer with the business?
Usually by notifying the change of holder, if it matches the real activity and premises.
Can I open a restaurant in a catalogued building?
Often yes, but works such as extraction or shopfronts need specific authorisation.
Do you act for landlords?
Yes, we draft and negotiate commercial leases for landlords and tenants.
Can a buyer of a business keep the existing staff?
In a transfer of business, existing employment contracts usually pass to the new owner. We review staff, contracts and pending claims before you buy.