Deciding whether to rent or take over a business is no easy task. It’s one of those choices that can shape your future as an entrepreneur in Spain, whether you’re starting from scratch or looking to take your career in a new direction. In both cases, money, time, and a lot of enthusiasm are at stake.

Throughout this article, we’ll analyze which option suits you best depending on your situation, the risks, advantages, and legal aspects you should understand before signing anything. And yes, we’ll also share what industry experts think about business rentals versus business takeovers.

The Difference Between Renting and Taking Over a Business: Key Concepts

First, let’s clarify what each term means.

Renting a business or commercial space means leasing the physical premises (and sometimes part of the equipment) to run your own activity. You pay a monthly rent, sign a lease agreement, and the business you set up inside is entirely yours.

On the other hand, taking over a business means buying or acquiring ownership of an already existing company or establishment. In other words, you assume its operations, clientele, furniture, licenses, reputation, and in some cases, even its staff.

In summary:

• Renting = empty or semi-equipped space.

• Takeover = running business with an existing structure.

It sounds simple, but the consequences of each choice are very different.

Advantages and Disadvantages of Renting a Space or Business

When you choose to rent, you do it for flexibility or because you’re not yet ready to commit fully to a specific business idea. But beware, not everything is an advantage.

Benefits of Choosing Commercial Rent

1. Lower initial investment. You don’t need to buy machinery, licenses, or pay a high transfer fee.

2. Flexibility. If the business doesn’t go well or you want to try another concept, you can do so once the lease ends.

3. Greater control. You design the business from scratch, your way, with your own strategy.

4. Lower financial risk. If you fail, the losses are limited compared to a purchase.

Renting is also ideal if you want to test a location or validate your business idea before committing long term.

Drawbacks of Renting for Entrepreneurs

Of course, it’s not all roses.

• You’ll need to invest in renovations, furniture, and equipment from scratch.

• The lease agreement can be restrictive (duration, subletting, construction, etc.).

• If the space previously housed another business, you may inherit its reputation, good or bad.

• And the most frustrating part: everything you invest in the space stays there when you leave.

In short, renting is cheaper upfront, but it may be less profitable if you fail to establish your brand.

Pros and Cons of Taking Over an Existing Business

Business takeovers have become increasingly popular in Spain, especially in sectors like hospitality, beauty, and retail. It’s a way to start with something already running, though it comes with risks.

Advantages of Buying an Existing Business

• Operational from day one. You don’t have to start from scratch.

• Established customer base, which can make all the difference in your first year.

• Trained staff who know how the business works.

• Valid licenses and permits, saving you from initial bureaucracy.

• Immediate income. You can start earning from the very first month.

A takeover can be the fastest route to self-employment or investing in a profitable business without waiting months.

Risks and Precautions Before a Takeover

However, you need to tread carefully.

• Thoroughly analyze the business’s finances. Sometimes the numbers don’t reflect the full reality.

• Check for debts, outstanding contracts, or legal disputes.

• Evaluate the location and potential of the premises. Don’t buy a business just because “it used to work.”

• And above all, negotiate a fair price. The value of a takeover depends greatly on actual revenue and the equipment included.

In short: a takeover can be a great opportunity, or an expensive mistake if you don’t do your homework.

Key Factors to Consider Before Deciding

This is where theory meets reality. Before signing a lease or a transfer agreement, think carefully about these key factors:

Initial Investment and Expected Profitability

Renting requires less upfront money but more operational investment in the medium term. A takeover, on the other hand, requires a larger initial sum but you can recover part of it faster if the business is already profitable.

Calculate your return timelines carefully. It’s not just about how much you invest, but how much you can earn, and how soon.

Type of Business and Future Outlook

Some sectors change rapidly (fashion, restaurants, digital services). If you plan a flexible business, renting lets you adapt more easily.
But if you want to build a solid, long-lasting brand, a takeover can give you an early advantage.

Location, Customer Base, and Competition

Location is everything. If the premises are in a busy area with loyal customers, a takeover may be worth it.
But if the area is oversaturated or the business has a poor reputation, it might be better to start fresh and rent with your own concept.

Legal and Tax Aspects You Can’t Ignore

Neither renting nor taking over is as simple as “signing and that’s it.” Both involve legal and tax obligations you need to understand.

Lease Agreement vs. Transfer Agreement

• In a lease, you and the property owner sign an agreement regulated by Spain’s Urban Leases Law (LAU).

• In a takeover, the contract is usually between private parties or companies and may include transferring the lease, licenses, furniture, and goodwill.

It’s crucial to have every clause reviewed by a lawyer or commercial advisor. Poor wording can cost you thousands of euros.

Tax Implications and Obligations of the New Owner

Both renting and takeovers involve taxes:

• VAT or Transfer Tax (ITP), depending on the type of transaction.

• Withholding taxes if you operate as a company.

• And don’t forget income declarations if you rent out or transfer your own business.

A common mistake is overlooking additional tax costs, which can completely alter the project’s profitability.

Practical Cases: When to Rent and When to Take Over

• If you have little experience and want to try your luck without a big investment: rent.

• If you want independence and full control over your brand: also rent.

• But if your goal is to make quick profits, take advantage of an existing customer base, or invest in a proven business: take over.

For example, imagine finding a bar in central Málaga with loyal clients and solid revenue. The takeover might be expensive, yes, but the return could come within months.

On the other hand, if you’re a young entrepreneur with an innovative idea, renting gives you freedom to experiment without long-term commitments.

Expert Tips to Choose the Best Option and Avoid Common Mistakes

1. Do market research. Don’t trust “it’s always worked.”

2. Always negotiate, both the transfer price and the rent.

3. Consult a lawyer or business advisor, especially before signing anything.

4. Check the licenses. Avoid surprises with expired permits or outdated regulations.

5. Analyze the area. Walk around, talk to locals, observe nearby businesses.

6. Have a Plan B. Just in case the business doesn’t go as expected.

And remember: success doesn’t just depend on the model you choose, but on how you manage it day to day.

Conclusion: How to Know Whether Renting or Taking Over a Business Suits You Best

Ultimately, there’s no one-size-fits-all answer. If you’re looking for freedom, low risk, and a gradual start, renting is your best ally. If, however, you prefer a solid foundation and have enough capital, a takeover can save you time and open many doors.

Whatever your case, the most important thing is to get informed, compare options, and seek professional advice before deciding.

If you need help finding business rental or takeover opportunities in Spain, we recommend visiting Business in Spain, where you’ll find real listings, expert guidance, and tools to help you choose wisely and without rush.