To open a café in Spain you need five things: a council permit for the activity, an APPCC (HACCP) food safety plan, staff trained in hygiene, official complaint forms and tax registration before the first receipt. There is no single nationwide permit — the procedure and timescales are set by the municipality, so the route in Barcelona differs from the one in Valencia.
The VAT (IVA) rate for food and drinks served on the premises, alcohol included, is 10%; alcohol sold in a sealed bottle to take away carries 21%. In the first year a self-employed person can pay the reduced social security contribution of about €88.72 a month, but it can only be claimed at registration. Spain no longer issues a state food handler certificate: staff training is the employer’s responsibility.
| What you need | Who decides | Legal basis |
|---|---|---|
| Permit for the activity, building works and terrace | town council | municipal regulations |
| APPCC food safety plan | the business itself, checked by the health inspectorate | EU Regulation 852/2004, Article 5 |
| Hygiene training for staff | employer | EU Regulation 852/2004, Annex II, Chapter XII |
| Official complaint forms | autonomous community | regional rules |
| Tax and social security registration | tax agency and social security | form 036, activity code |
Further on in the article: how much money you need to start and every month, how to choose a business structure, what to check in the premises before signing a contract, how to hire staff and which mistakes cost the most.
Why opening a café in Spain is a promising idea
Advantages of running a restaurant business in Spain
Spain offers several key advantages for anyone who wants to open their own restaurant or café:
1. A strong culture of eating out and drinking coffee
Spaniards traditionally spend a lot of time in bars and cafés. The day often starts with a morning coffee at a bar, lunch means a menu del día at a restaurant, and in the evening people gather on terraces for tapas and wine. Food service culture is highly developed in Spain, which creates steady demand throughout the day.
2. Tourist flow
Cities such as Barcelona, Madrid and Valencia and the popular resort areas of Catalonia attract millions of tourists every year. A tourist area gives you an additional target audience and the chance to work at high intensity during the season. In Spain you can find locations with customers all year round, or seasonal spots with very high profits in summer.
3. Relatively low barriers to entry
Compared with other European countries, in Spain you can open a small café or bar with relatively modest start-up capital. Even with a small budget (from 30–50 thousand euros) you can start a business in less expensive neighbourhoods or towns.
4. The possibility of a residence permit
Opening and running a business in Spain gives the entrepreneur and their family the right to a residence permit. This is particularly attractive to foreign investors who plan to move to Spain or are already here.
Business immigration is a popular way to obtain legal status in the country.
5. Quality of life
Spain is known for its high standard of living, excellent climate, good healthcare and education. For many foreigners, opening their own café becomes a way not just to run a business but to live in a comfortable environment with affordable property and wonderful weather.
6. A favourable attitude to entrepreneurs
Spain is well disposed towards foreign entrepreneurs, especially if they create jobs and pay taxes. Registering a company in Spain is open not only to EU citizens but also to foreigners with the appropriate visas.

Who can open a café in Spain
A food and drink establishment in Spain can be opened by:
- EU and Spanish citizens — they have the full right to do business without any additional restrictions
- Foreigners with a residence permit — you need a residence card that allows you to work and run a business. For residents of Spain the opening procedure is simpler
- Non-resident foreigners — they can set up a company in Spain and obtain an entrepreneur work visa once the business has been created
Important: a tourist visa alone does not give you the right to open a restaurant or manage a business. You need to regularise your status by obtaining an NIE (foreigner identification number) and the appropriate work authorisation. Many entrepreneurs move to Spain precisely to open their own business and obtain legal status.
Real risks and problems
Despite the advantages, it is important to understand the real risks of this business in Spain:
- High competition — in popular areas of Barcelona and Madrid the density of venues is very high. Restaurants, cafés and bars are literally on every corner
- Seasonality — in tourist areas the flow of customers depends heavily on the season
- Bureaucracy — obtaining all the licences and the permit to open a venue takes time and patience
- Language barrier — knowing Spanish is extremely important for dealing with the authorities, suppliers and staff
- Tax burden — taxes in Spain are fairly high, especially for small businesses
- Employment law — strict rules on hiring and dismissing employees
- Cost — in Spain it is expensive to rent premises in the central districts of large cities
First steps: where to start
Developing a concept and business plan
Before starting your business you need to understand clearly what exactly you want to create. If you want to open a successful venue, the concept is the foundation of the project.
If you have not yet finally decided to open one, it is useful to compare food service with other formats and business structures — this is covered in our general article on doing business in Spain.
Key questions for the concept:
- What type of venue? Café, bar, restaurant, coffee shop, tapas bar? Without premises — a food truck, with its own rules on pitches and hygiene.
- Who is your target audience? Locals, tourists, business people, students, families with children?
- What cuisine and menu? Traditional Spanish, international, fusion, vegetarian?
- What price segment? Budget, mid-range, premium?
- Where is the venue? City centre, tourist street, residential area, office district?
The business model should include:
- Market analysis — studying competitors, demand and the popularity of different types of business in the chosen region
- Financial plan — calculating start-up capital, running costs, projected income and the payback period
- Marketing strategy — how you will attract customers (social media, advertising, discounts)
- Operational plan — opening hours, number of staff, suppliers, menu
Many foreigners make the mistake of underestimating the importance of a business plan. I think this is one of the main reasons for failure. Even if you have a small café, a simple plan will help you avoid many problems and calculate your budget correctly. Thorough preparation is essential before you open a restaurant.
Researching the market and competitors
Before you buy property or rent premises, carry out detailed research:
- Walk around the area — count how many cafés and restaurants there are within a radius of 200–300 metres
- Visit competitors — assess the quality of the food and service, prices, interior and number of customers
- Watch the footfall — at what time of day there are the most passers-by, and what the demographic is (locals or tourists)
- Study reviews — read what people write about venues on Google Maps and TripAdvisor
- Talk to locals — ask residents of the area what kinds of venues they are missing
It is especially important to understand whether the market is saturated. On some streets in Barcelona there are 2–3 cafés every 50 metres — in that situation competition will be enormous and it is hard to stand out. A restaurant can only be opened successfully with the right choice of location and a unique concept.
Choosing a business structure: autónomo or SL
If the café is not your only project but part of a company’s entry into the Spanish market, the structure is chosen together with the tax regime and ownership structure: entering the Spanish market.
There are several business structures in Spain. To set up a business in Spain, two options are the most popular:
1. Autónomo (self-employed sole trader)
Advantages:
- Simple and quick business registration in Spain
- Less bureaucracy
- Lower accounting costs
- You can start a business with minimal capital
Disadvantages:
- Full personal liability for debts (risk of losing personal property)
- Less attractive to investors
- Harder to scale the business
Minimum capital: not required
Monthly social security payment: depends on net income — 31.5% of the base for your income band, from €205.88 a month in 2026; for the first 12 months a flat rate of €80 (more in «Autónomo taxes and contributions in Spain»)
2. SL (Sociedad Limitada — limited liability company)
Advantages:
- Limited liability (risk only up to the amount of the share capital)
- A more solid image
- Suitable for partnerships (family business)
- Easier to attract investment
Disadvantages:
- Minimum capital of 3,000 euros required
- More complicated company registration in Spain and reporting
- Higher management and accounting costs
- Requires notarisation
Most small cafés start as autónomo. It is a suitable structure for those who want to open their own café with minimal initial costs. However, if you are planning a larger project, working with partners or want to minimise personal risk, it is better to set up an SL from the outset.
Legal requirements and documents
NIE and permits for foreigners
The first thing any foreigner needs to obtain is an NIE (Número de Identidad de Extranjero). It is the identification number required for any transaction in Spain: opening a bank account, signing contracts, registering a company, buying property.
Before licences and hygiene rules, you need to decide on the legal structure and register: without an NIE, registration and a tax number, no licence will be issued in your name. This stage is covered by our company or autónomo registration service.
How to get an NIE:
- Book an appointment — via the police website or the foreigners’ office (Oficina de Extranjería)
- Prepare the documents:
- Completed form EX-15
- Copy of your passport
- Justification for needing an NIE (for example, a letter stating your intention to open a business in Spain)
- Pay the fee — about 10 euros (form 790)
- Visit the office — submit the documents and receive the NIE (this can take anywhere from a few days to a month)
Those who intend to live in Spain and manage a business also need an entrepreneur visa or an investor residence permit. Opening a visa application involves:
- Preparing a business plan
- Proof of sufficient financial means
- Health insurance
- No criminal record
- An interview at the consulate
Many entrepreneurs come to Spain first. You can obtain a tourist visa, assess the market and then come back to apply for an entrepreneur visa.
Registering a company: step-by-step procedure
The process of setting up a company in Spain takes 2–4 weeks on average.
Here are the main stages of opening:
For an autónomo:
- Obtain an NIE
- Register with the tax agency (Agencia Tributaria) — file form 036 or 037 and choose the type of activity (código IAE)
- Register with social security (Seguridad Social) — contributions start
- Obtain licences — a bar or restaurant licence and other necessary permits
- Open a bank account
For an SL (to set up a company):
- All founders obtain an NIE
- Reserve the company name — check that the name is available (Registro Mercantil Central)
- Open a bank account — deposit the share capital (minimum 3,000 euros)
- Draft the articles of association — usually with the help of a lawyer
- Notarisation — sign the founding documents before a notary
- Register with the Commercial Registry (Registro Mercantil) — the official entry of the company
- Obtain the company NIF — the tax identification number
- Register with the tax agency and social security
- Obtain the necessary licences
The whole process requires knowledge of Spanish or the help of an interpreter. Many foreigners hire lawyers or consultants who specialise in setting up companies for foreign nationals. Such services cost from 800 to 2,000 euros. Everything needs to be done correctly from a legal point of view to avoid problems in the future.

Licences required to open a café
Opening a restaurant or café in Spain requires several mandatory licences and permits. This is one of the most complex and time-consuming stages. Here is what you need to do to obtain all the necessary documents:
1. Licencia de Actividad (activity licence)
This is the main licence, confirming that the premises meet all technical and hygiene standards for running a food service business. It is issued by the municipal authorities (Ayuntamiento).
Required:
- An architect’s project for the premises
- A technical report on compliance with regulations
- Evacuation and fire safety plans
- Documents for the premises (lease agreement or title deed)
Time: from 2 to 6 months
Cost: from 1,000 to 5,000 euros (depending on the size of the venue and the city)
2. Licencia de Apertura (opening licence)
The opening permit confirms that all works have been carried out according to the project and the venue is ready to start operating.
3. Entry in the regional food register
A café does not get a separate health authorisation. Food service counts as food retail: it is not entered in the national RGSEAA register; instead, before opening you file a notification or responsible declaration with the region’s health service, which enters the venue in its own register (Article 2.2 of Royal Decree 191/2011). The kitchen, food storage areas and toilets are then checked by health inspectors.
4. Terraza Permit (terrace permit)
If you plan to put tables on the street or pavement, you need a separate permit to open a terrace from the town council. In Spain, very popular outdoor terraces are common, but in some districts of Barcelona and other cities such a permit is hard to obtain because of restrictions.
5. Licencia de Música (music licence)
If you plan background music or live performances, you need a licence and registration with SGAE (the Spanish society of authors and publishers).
6. Signage (Rótulo)
A permit to install a sign must also be obtained from the town council. In Spain, very strict rules apply to size, colour and lighting, especially in historic centres.
Important: the law requires all these licences to be obtained BEFORE opening. Operating without licences risks heavy fines (from 3,000 euros) and closure of the venue. That is why you should open a café only after obtaining all the necessary documents.
Leasing or buying premises
The choice between renting and buying premises is one of the key decisions when you plan to open your own restaurant.
Renting (Alquiler)
Advantages:
- Lower initial costs
- Flexibility (you can move if the business does not work out)
- No large amount of capital required
Disadvantages:
- Constant monthly payments
- Risk of rent increases
- Dependence on the restaurant owner or landlord
- A traspaso (buying out the previous tenant’s business) is often required
Typical lease terms:
- Term: 5–10 years
- Deposit: 2–6 months’ rent
- Traspaso: from 20,000 to 200,000+ euros (depending on location and condition)
- Monthly rent: from 800 euros (small towns) to 5,000+ euros (central Barcelona/Madrid)
Buying (Compra)
Buying property for a café is a serious investment:
Advantages:
- Ownership — stability and the option to sell
- No monthly rent
- You can obtain an investor residence permit (when buying residential property in Spain from 500,000 euros)
Disadvantages:
- Huge initial costs (from 150,000 euros in small towns to 1+ million in the centre of large cities)
- Low liquidity
- Property taxes and responsibility for building repairs
- Risk if the location turns out to be a poor one
Most first-time entrepreneurs choose to rent, since buying property requires very large investment. In Spain it is expensive to buy property in the central districts of Barcelona and Madrid. However, in the long term owning your premises may be more cost-effective.
Important: when renting, always check that:
- The premises already have a bar or restaurant licence (or can obtain one)
- The terms of the contract allow you to carry out the necessary renovations
- There are no hidden problems with equipment or utilities
- The location really suits your concept
Many foreigners fall into the trap of buying a ready-made business in Spain (traspaso) without proper checks, only to discover later that the licences are out of date or there are debts to the authorities.
What the law requires: licences, hygiene and registration
This is the most expensive part of the preparation and the only one where a mistake costs you not money but closure. Below are the requirements that apply regardless of concept and city.
The activity permit is issued by the town council
There is no single Spanish permit to open a café: the procedure is set by the municipality. The national law 12/2012 abolished the prior licence for retail and some services in premises of up to 750 m² — but food service is not on that law’s list. We checked the annex to the law: cafés, bars and restaurants are not included.
The practical conclusion: look at your city’s regulations. In some places a self-declaration (declaración responsable) is enough; in others a licencia de actividad with a project and an inspection report is still required. A licencia de obras (works licence) is obtained separately if the premises are being converted, and a terrace permit separately again: it is an occupation of public space, and the town council grants it on its own terms.
Hygiene requirements: an APPCC plan is mandatory
EU Regulation 852/2004 on the hygiene of foodstuffs, in Article 5, requires every food business to put in place, implement and maintain permanent procedures based on APPCC (HACCP) principles: identify hazards, determine critical control points, set limits and keep records. This is not a recommendation or “paperwork for inspectors” — it is a condition of operating.
Staff training: the “carné” is no longer issued
Annex II to the same regulation, Chapter XII, places responsibility for staff hygiene training on the business itself. At the same time, Spain no longer has a state food handler certificate: Royal Decree 109/2010 repealed Decree 202/2000, together with the prior approval of training organisations and their programmes.
What this means in practice: buying an “official carné” online proves nothing. The employer is responsible, and the evidence is the employer’s own records of staff training.
Complaints book
A venue must have official complaint forms and display a notice about them in a visible place. The form and the way it is issued are set by the autonomous community, so they differ in Catalonia and Andalusia.
Tax registration
Before the first receipt you must declare the activity on form modelo 036 with the activity code, register with the social security system and decide on your VAT regime. The step-by-step procedure for the self-employed is covered separately: how to register as autónomo in Spain.
The amount most often forgotten. In the first year the self-employed contribution can be paid at the reduced flat rate — about €88.72 a month instead of the full quota — but it is claimed only at registration and cannot be applied retroactively. More detail: autónomo taxes and contributions.
Financial planning
Start-up capital: how much money you need
One of the most frequent questions is how much money you need to open a café in Spain. The answer depends on many factors: the city, the size of the venue, the concept and the condition of the premises.
Part of the start-up costs can be covered by subsidies — for equipment, energy efficiency and hiring your first employee. What is available to small businesses and on what terms is gathered in our overview of business development grants. The Basque Country is a separate case: the region provides support from its own budget, and the conditions there differ from those in the rest of Spain.
Minimum budget for a small café/bar (30–40 seats):
| Cost item | Amount (euros) |
|---|---|
| Company registration and legal services | 1,000–2,000 |
| NIE, visas and permits | 500–1,500 |
| Rent of premises (deposit) | 3,000–15,000 |
| Traspaso (business buy-out) | 20,000–80,000 |
| Licences and permits | 2,000–8,000 |
| Renovation and interior | 10,000–40,000 |
| Kitchen equipment | 8,000–25,000 |
| Furniture (tables, chairs) | 5,000–15,000 |
| Tableware and utensils | 2,000–5,000 |
| First purchase of food and drink | 2,000–5,000 |
| Marketing and signage | 2,000–5,000 |
| Reserve fund (3 months) | 10,000–20,000 |
| TOTAL | 65,000–220,000 |
These are very rough averages. In reality:
- In small towns or less popular areas you can start a business with 40–60 thousand euros
- In central Barcelona or Madrid start-up capital can reach 150–300 thousand euros, because in Spain it is expensive to rent premium locations
- For an established, operating bar in a good location, the traspaso can cost 100–200 thousand euros
Important: never put all your money into start-up costs. Always keep reserve capital to cover 3–6 months of operating expenses. In its first months a café rarely makes enough profit to cover all its costs. Many business owners underestimate this need.
Operating expenses: monthly costs
After opening you will have to pay significant sums every month, even in slow periods. Here is a typical breakdown of monthly costs:
Monthly costs of a small café (approximate calculation):
- Rent: 1,500–4,000 euros
- Utilities (electricity, water, gas): 300–800 euros
- Staff salaries (2–4 people): 3,000–7,000 euros
- Social security contributions for staff: 900–2,100 euros (about 30% of salaries)
- Food and drink purchases: 2,000–5,000 euros
- Insurance: 100–300 euros
- Accounting: 150–400 euros
- Marketing and advertising: 200–500 euros
- Music licence (SGAE): 50–150 euros
- Cleaning and maintenance: 200–400 euros
- Miscellaneous (minor repairs, replacing equipment): 200–500 euros
Total: 8,600–21,150 euros a month
This means that to break even a café must bring in at least 300–700 euros of revenue a day. With an average bill of 10–15 euros, that is 20–50 customers every day. The business should be planned carefully, taking all these costs into account.
Taxes for a restaurant business
For foreigners opening a café in Spain as autónomo, the tax burden almost always turns out higher than expected at the start — not because of the rates but because of the structure of taxes.
The Spanish tax system is fairly complex, and the tax burden can be significant. In Spain the following main taxes and charges apply to food service:
1. IVA (VAT)
- Food and drinks on the premises, alcohol included: 10% (Article 91.Uno.2.2º of the VAT Law)
- Bread, milk, fruit to take away: 4%
- Alcohol in a sealed bottle to take away: 21%
2. IRPF (personal income tax) for an autónomo
- Progressive scale: from 19% to 47% depending on income
- Regional differences (it may be higher in Catalonia)
- It is important for residents of Spain to calculate the tax base correctly
3. Impuesto sobre Sociedades (corporate tax for an SL)
- General rate: 25%; in 2026, with turnover up to €1 million — 19% on the first €50,000 of profit and 21% on the rest
- New company: 15% in its first profitable year and the next one (Article 29 and Transitional Provision 44 of the Corporate Tax Law)
4. Social security contributions
- For an autónomo: from €205.88 a month in 2026 — 31.5% of a base that depends on net income; for the first 12 months a flat rate of €80 a month, and another 12 months at the same price only if income in the second year does not exceed the minimum wage
- For employees: about 30% of salary
5. Local taxes
- IAE (business activity tax): small businesses are often exempt
- Terrace tax: for tables on the terrace (depends on the city and the area)
- Property taxes (IBI) — if you own the premises
Example tax burden for a café in Spain (autónomo)
If your café makes €5,000 profit a month (after all operating expenses but before tax):
Calculating the burden is half the job; the other half is filing the returns (modelos) on time: in food service, staff records are added to the usual quarterly forms. In practice this is most often outsourced to accounting support for food service businesses.
-
Annual profit: €60,000
-
IRPF (autónomo): ~€16,000–20,000
(effective rate about 25–35% depending on the region and regime) -
Autónomo social security contributions: ~€3,500 a year
-
Net profit: ~€36,000–40,000 a year
(≈ €3,000–3,300 a month)
In practice you almost always need the support of a gestor / asesor fiscal (administrative agent / tax adviser).
Their services (€150–400 a month) usually pay for themselves through the correct choice of tax regime and a lower risk of fines.
We have covered the basic tax burden and a typical calculation.
But in practice most problems arise not from the rates but from mistakes foreigners make at the start.
It is these mistakes that most often lead to overpaying €10,000–20,000 in the first 2–3 years — even when the business is doing fine.
A common mistake foreigners make when opening a restaurant
The most common mistake foreigners make is
choosing autónomo without calculating the point beyond which an SL becomes more cost-effective.
This mistake is barely noticeable in the first year, but over 2–3 years it usually leads to overpaying €10,000–20,000 purely because of the tax structure, not the business turnover.
How to avoid this mistake
So that you do not decide blindly, we prepare an individual tax calculation
for cafés and restaurants in Spain.
As a result you understand:
-
how much tax you will pay in your particular format,
-
whether autónomo suits you or an SL already makes sense,
-
where the main tax burden and risks arise.
Tell us your situation — we reply within the hour
Sources of financing
If you do not have enough of your own money to open your own café, there are several options:
1. Bank loans
Spanish banks lend to small businesses, but the requirements are fairly strict:
- A business plan with financial forecasts
- Your own contribution (usually at least 30–40% of the project cost)
- Collateral (property, guarantors)
- Proof of creditworthiness
Interest rates: 4–8% a year (depending on the bank and type of loan)
2. Partners and investors
You can bring in partners who invest capital in exchange for a share of the business. This is a common approach, especially when an SL is set up for a family business.
3. ICO programme (Instituto de Crédito Oficial)
A state programme supporting small businesses. It offers loans on more favourable terms for start-ups. In Spain you can obtain such financing if you have a good business plan.
4. Crowdfunding
Less popular in Spain for restaurant businesses, but possible for unique concepts.
5. Subsidies for entrepreneurs
Some regions have programmes supporting new entrepreneurs, especially young people (under 30) and women. Information can be found on the website of the local town council or chamber of commerce.
The programmes are not gathered in one place: national, regional and municipal subsidies are announced at different times by different bodies, and you have to track them manually. How the programmes work, who can apply and what they require at the outset is covered in a separate article: business development grants in Spain. Almost all programmes require a company or a registered autónomo to exist at the time of application.
If you have no time to monitor the register, Grantomat does it for you: it checks subsidy announcements five times a day and sends a notification when a suitable programme appears. We handle the preparation and submission of the application itself as a separate service — grant application support.
Finding and setting up premises
How to find the right location
Location is one of the main factors in the success of a restaurant business. In Spain it is believed that the right choice of location accounts for 50% of a venture’s success. Here is what to take into account:
To rent premises and submit documents to the town council you will need a certificate of the business’s tax address — how to get it and why it is needed is described in our note on the certificado de situación censal.
1. Footfall
- How many people walk past at different times of day and on different days of the week
- Whether the location is on a pedestrian route
2. Visibility
- Whether the venue is noticeable from the street
- Whether there is an opportunity to put up an attractive sign
3. Target audience
- Whether the area matches your concept (tourist zone vs residential area)
- Whether there are offices, schools, hotels or sights nearby
4. Competition
- How many similar venues there are within a radius of 200–300 metres
- How successful they are
5. Transport links
- Proximity to metro stations and bus stops
- Parking nearby (important for some customers)
6. Terrace potential
- Whether there is room for tables outside (in Spain, very popular outdoor terraces are the norm)
- Whether it is possible to obtain a permit to open a terrace
Where to look for premises:
- Specialist property websites: Idealista.com, Fotocasa.es, Pisos.com
- Commercial property agencies
- Social media groups and forums
- Simply walking around the area — windows often carry “Se alquila” (for rent) signs
Popular areas for cafés:
Barcelona:
- Gothic Quarter (high tourist activity)
- Gràcia (bohemian area, local residents)
- Eixample (office and residential, mid-range price segment)
- El Raval (young, creative, more affordable prices)
Madrid:
- Malasaña (young, lively nightlife)
- Chueca (LGBT-friendly, tourists and locals)
- La Latina (traditional, tapas bars)
- Salamanca (premium district)
Important: be sure to visit the location at different times of day and on different days of the week before making a decision. What looks lively on a Saturday afternoon may be deserted on a Monday morning. If you want to open a successful café, study the location thoroughly.
What to check before signing a contract
Before signing a lease or deciding to buy property, check the following:
1. Licences
- Whether the premises have a valid licencia de actividad for a restaurant business
- If not — whether it is possible to obtain one (some buildings in historic centres have restrictions)
2. Technical condition
- The condition of the wiring, plumbing and drainage
- Whether the ventilation and air conditioning work
- Whether there is gas (for the kitchen)
- Whether there is an extractor hood in the kitchen
3. Legal clearance
- The owner’s right to let or sell
- No outstanding utility debts
- No legal disputes over the premises
4. Contract terms
- Lease term (ideally 5–10 years for stability)
- Termination conditions
- Who pays for repairs
- Whether you can sublet or transfer the business
- Conditions for rent increases
5. Traspaso If you are buying a ready-made business in Spain:
- Check the financial statements of the previous restaurant owner
- Make sure all licences are valid and can be transferred
- Check the condition of the equipment
- Find out the real reason for the sale
I recommend always involving a lawyer to review the lease and the traspaso deal. The fee (500–1,500 euros) can save you from huge problems later on. The business should be legally protected from the very beginning.
Design, equipment and renovation
Requirements for the premises and layout
You need premises that meet strict technical and hygiene requirements:
Mandatory areas:
- Customer dining area — the minimum floor area depends on the number of seats (usually at least 1.5–2 m² per person)
- Kitchen — must be separated from the dining area, with specific requirements for ventilation, lighting and surfaces
- Storage rooms — for storing food (dry goods separate from refrigerated goods)
- Toilets — at least one for customers and one for staff (with more than 10 employees)
- Dishwashing area — can be part of the kitchen
- Service entrance — for receiving deliveries and removing rubbish
Technical requirements:
- Ceiling height: at least 2.5 metres
- Ventilation: mechanical extraction in the kitchen
- Lighting: natural and artificial, compliant with regulations
- Flooring: non-slip, waterproof, easy to clean
- Kitchen walls: tiles or another washable surface up to a height of at least 2 metres
- Fire safety: fire extinguishers, evacuation plans, emergency lighting, fire doors
The layout project must be drawn up by an architect and approved by the municipal authorities in order to obtain the licence. In Spain it is considered mandatory to comply with all hygiene standards.
Kitchen equipment
Basic equipment for a small café kitchen is part of launching a restaurant:
Refrigeration equipment:
- Refrigerated cabinets for food
- Refrigerated display for drinks and desserts
- Freezer
Cooking equipment:
- Hob (gas or electric) — 4–6 burners
- Oven
- Grill or plancha (for Spanish cuisine)
- Deep fryer
- Microwave oven
Ventilation:
- Professional extractor hood with filters
Washing and dishwashing equipment:
- Industrial dishwasher
- Sinks (at least two)
Food preparation:
- Stainless steel worktables
- Blender, mixer
- Slicer
Coffee machine:
- Professional espresso machine (critically important for a café)
- Coffee grinder
Other:
- Storage shelving
- Refrigerated counter
- Ice maker (especially important in the hot months)
Cost: a full set of equipment for a small café — from 15,000 to 40,000 euros (new). You can save by buying second-hand equipment, but its condition needs to be checked. The business should invest in good-quality equipment.
Interior and atmosphere
Interior design is not just about aesthetics; it is also a way to attract your target customers and build a recognisable brand. In Spain it is believed that the atmosphere of a venue is as important as the quality of the food.
Popular styles for cafés in Spain:
- Traditional Spanish — wood, patterned tiles, warm colours, vintage touches
- Mediterranean — light tones, natural materials, plants, lots of light
- Industrial — brick walls, metal, minimalism (popular in young neighbourhoods)
- Scandinavian — light wood, simple shapes, cosiness
- Boho/vintage — eclectic furniture, bright accents, retro elements
Key elements:
- Colour scheme — should match the concept and create the right mood
- Furniture — comfortable, durable, easy to clean
- Lighting — a combination of general and accent lighting, with adjustable brightness
- Music — matching the atmosphere of the venue
- Décor — plants, pictures, photos — but do not overdo it
Important for Spain:
- Terrace — if possible, be sure to fit out an outdoor area (parasols, heaters for winter). In Spain, outdoor spaces are highly valued
- Bar — a visible bar counter is important in Spanish culture
The interior design can be done yourself, by hiring a designer (from 2,000 euros) or by buying a ready-made project. Renovation and fitting out usually take from 1 to 3 months and cost from 10,000 to 50,000+ euros depending on the size and ambition of the project.
Recruiting staff and management
How many employees you need
The size of the team depends on the size of the venue, opening hours and the concept:
Small café (30–40 seats):
- Cook: 1–2 people
- Waiters/baristas: 2–3 people
- Dishwasher/assistant: 0–1 (waiters often take on this role)
- Manager: the owner or 1 person
Total: 3–6 people (allowing for shift work)
Mid-sized restaurant (60–80 seats):
- Head chef: 1
- Cooks: 2–3
- Waiters: 4–6
- Bartender: 1–2
- Host/front-of-house manager: 1
- Dishwasher: 1–2
- Cleaner: 0–1
Total: 10–16 people
Doing business in Spain requires strict compliance with employment law.
Staff requirements and documents
To hire employees in Spain you need:
1. Registration as an employer
- With the Seguridad Social (social security)
- Obtaining a cuenta de cotización (contribution account) code
2. Employment contract
- A written contract is mandatory
- Stating the type of contract (temporary, permanent, full-time/part-time)
- Salary (not below the minimum wage — about 1,000 euros a month in 2025)
- Working hours (maximum 40 hours a week)
3. Registering the employee
- Filing documents with the Seguridad Social before work starts
4. Taxes and contributions
- IRPF (income tax) — withheld from salary
- Social security contributions — the employer pays about 30% of salary, the employee about 6%
For foreign employees:
- A work visa or work authorisation is required
- NIE check
Important: Spanish employment law strongly protects workers’ rights. In Spain, in the area of employment relations, dismissal without serious cause can cost compensation of 20–33 days’ salary for each year worked.
Where to find staff
Online platforms:
- InfoJobs.net — the largest job search portal in Spain
- Indeed.es
- Grupos de Facebook — many local job-search groups
Offline:
- Notices at educational institutions — cookery schools, tourism faculties
- Word of mouth — recommendations from contacts in the industry
- Notices in the venue itself — “Se busca camarero/cocinero” (waiter/cook wanted)
Recruitment agencies — specialising in restaurant staff
What to expect from the labour market:
- High staff turnover in tourist cities
- Language requirements: English is desirable for waiters in tourist areas; Spanish is enough for the kitchen
- Competition for good cooks and professional waiters
- Average salary: cook 1,400–2,000 euros, waiter 1,200–1,600 euros (+ tips)
The role of the manager
If you do not plan to be at the café every day yourself, you need a manager (gerente or encargado). This is a critically important position for a successful restaurant launch.
Responsibilities:
- Controlling the quality of food and service
- Managing staff (rotas, motivation, resolving conflicts)
- Dealing with suppliers
- Controlling stock and purchasing
- Handling the till and financial records
- Resolving customer problems
Requirements:
- At least 2–3 years’ experience in the restaurant business
- Knowledge of Spanish (essential)
- Organisational skills
- Ability to cope with stress
Salary: 1,800–3,000+ euros a month (depending on the size of your restaurant and the responsibilities)
Many foreigners, especially those who do not speak fluent Spanish, hire an experienced local manager. This provides not only operational help but also an understanding of local culture and connections with suppliers.
Working with suppliers and the menu
Finding food suppliers
The quality of ingredients is the foundation of a restaurant’s success. Throughout Spain there are several purchasing options:
1. Wholesale markets (Mercados mayoristas)
- Mercabarna (Barcelona), Mercamadrid (Madrid) — the largest wholesale markets
- A wide range of fresh produce at good prices
- An early start is required (they open at 4–5 a.m.)
2. Specialist suppliers
- Meat: local meat processors or farms
- Fish and seafood: specialist companies
- Fruit and vegetables: wholesalers or local farmers
- Drinks: distributors of wine, beer and soft drinks
- Bread: local bakeries
3. Large distributors
- Makro, Costco — warehouse clubs (a business card is required)
- Convenient for regular supplies, but prices may be higher
4. Local producers
- For an eco-friendly concept you can work directly with farmers
- Suits venues with a local/organic focus
Selection criteria:
- Price and payment terms
- Product quality
- Regularity and reliability of deliveries
- Minimum order volumes
- Proximity to your restaurant (logistics)
Important: always work with suppliers who provide all the necessary certificates and invoices. This matters not only for quality but also for tax reporting.
Developing the menu
The menu is the heart of your café. It should match the concept and take into account the preferences of your target audience and the capabilities of the kitchen. A restaurant that offers a high-quality, well-thought-out menu will always be successful.
Principles of a good menu:
- Balance — a mix of traditional and original dishes
- Seasonality — using seasonal produce reduces costs and improves quality
- Variety — options for different dietary preferences (vegetarian, gluten-free)
- Manageability — do not make the menu too big; 15–25 well-prepared dishes are better
- Pricing policy — take cost price and market prices into account
Popular formats in Spain:
- Menú del día — a set lunch (starter, main course, dessert, drink) at a fixed price (usually 10–15 euros). It is standard on weekdays to attract office workers
- Tapas — small portions of different dishes for sharing
- Raciones — medium portions for sharing
- Bocadillos — Spanish sandwiches
- Desayuno — breakfast (coffee + toast/croissant + juice)
Drinks:
- Coffee (espresso, cortado, café con leche) — essential
- Freshly squeezed juices
- Beer (local beer is a must)
- Wine (a selection of Spanish wines)
- Cocktails (for bars)
- Soft drinks
Food cost — the cost of ingredients should be 25–35% of the dish price for normal profitability of a restaurant business.
Calculating prices and profitability
The right pricing policy is critical to success.
Pricing formula:
Dish price = Ingredient cost × 3–4
For example:
- Cost of a pasta dish: 2.5 euros
- Menu price: 8–10 euros
Factors affecting prices:
- Location (city centre vs outskirts)
- Target audience
- Competitors
- Ingredient quality
- Portion size
- Atmosphere of the venue
Typical prices in Spain (2025):
- Coffee: 1.5–3 euros
- Toast with tomato: 2–4 euros
- Bocadillo: 4–7 euros
- Tapas: 3–6 euros
- Main course: 10–18 euros
- Dessert: 4–7 euros
- Glass of wine: 3–6 euros
- Beer (caña): 2–4 euros
To achieve profitability:
- Revenue must cover operating expenses + taxes
- Average bill × number of customers × trading days = monthly revenue
- Target profitability: 10–20% net profit (after all expenses and taxes)
Marketing and promotion
Customer acquisition strategy
Even the best café will not succeed without customers. In today’s Spain, marketing a restaurant business depends largely on online presence and reputation.
Main channels:
1. Google My Business
- A free and critically important tool
- Create a profile for the venue with the exact address, opening hours, photos and menu
- Reply to reviews (especially negative ones)
- Update the information regularly
2. Social media
- Instagram — the most important platform for restaurants and cafés
- Attractive photos of food and interior
- Stories about daily specials
- Reels showing the cooking process
- Hashtags (#barcelonafood, #madridfoodie, #tapasbarcelona)
- Facebook — for events, menus, contact details
- TikTok — for a young audience, viral content
3. Booking and review platforms
- TheFork (ElTenedor) — a popular online booking system that offers discounts to attract customers
- TripAdvisor — important for tourists
- Google Reviews — affects visibility in search
4. Website/landing page
- It need not be complex, but you should have one
- Menu, photos, contact details, online booking
- Mobile-friendly
5. Offline:
- Flyers in hotels and tourist centres
- Partnerships with local businesses
- Taking part in local food festivals
Working with tourists and locals
Tourists:
- Look for an authentic experience
- Rely on online reviews
- Usually spend more money
- Instagram photos matter
- Seasonality (peak in summer and during holidays)
Locals:
- Value quality and consistency
- Speed of service matters (especially at lunchtime)
- Become regular customers
- Spread the word
- A year-round customer base
Balance: ideally you have a mixed audience — tourists bring high revenue in season, locals provide stability all year round. If you want to open a successful café, you need to cater to both groups.
Loyalty programmes
To keep regular customers:
- Loyalty cards — every 10th coffee free
- Discounts on certain days — happy hour, weekday discounts
- Special offers for subscribers — exclusives via email or Instagram
- Events — wine tastings, live music, cookery masterclasses
Common mistakes and how to avoid them
Financial mistakes
1. Insufficient start-up capital Many people who decided to open a café put all their money into renovation and equipment, leaving no reserve for the first months. The result is closure after 3–6 months due to a lack of working capital.
Solution: always have a reserve covering 6 months of operating expenses.
2. Wrong pricing Either prices are too low (no profit) or too high (no customers).
Solution: calculate your costs carefully, study competitors, start with moderate prices and adjust based on feedback. A business can only succeed with the right pricing.
3. Poor financial record-keeping A lack of control over expenses leads to money leaking away.
Solution: hire a professional accountant and use an accounting system (POS system).
Operational mistakes
4. The wrong location Attractive premises in a quiet side street with no footfall are a path to failure.
Solution: spend time analysing the location BEFORE signing the contract. To open a successful café, the location must be ideal.
5. Too large a menu Trying to please everyone, people create a menu with 100 items. The result is low quality, high food costs and slow service.
Solution: focus on 15–25 dishes that you do excellently.
6. Poor food quality Trying to save on ingredients ruins your reputation.
Solution: quality is not something to economise on. It is better to have a smaller but excellent menu. Business owners must understand that quality is the top priority.
7. Ignoring hygiene rules Fines from health inspections can be huge (from 3,000 euros).
Solution: comply strictly with all the rules, carry out regular checks and train staff.
Legal and bureaucratic mistakes
8. Operating without licences “I’ll start trading and sort the paperwork out later” is a dangerous strategy. Fines for operating without licences can close a business.
Solution: obtain ALL the necessary licences BEFORE opening. A permit to open the venue is a mandatory requirement.
9. Employing staff incorrectly Employing staff off the books risks huge fines and problems with the labour inspectorate.
Solution: register all employees officially. Yes, it costs more, but it is legal and safe. Doing business under the conditions in Spain requires strict compliance with employment law.
10. Not knowing tax law Errors in tax returns lead to fines and additional assessments.
Solution: always work with a professional gestor/asesor fiscal.
Management mistakes
11. No management system The owner tries to do everything alone, works 16 hours a day and burns out.
Solution: hire a manager or set up a clear system of processes from the very start.
12. Poor staff selection Hiring the first person who comes along without checking their experience and skills.
Solution: careful selection, a trial period, training.
13. Ignoring customer feedback Not reading reviews and not responding to complaints.
Solution: work actively with reviews and fix problems quickly.
Regional specifics
Barcelona
Advantages:
- A huge flow of tourists (up to 30 million a year)
- A cosmopolitan audience
- A high average bill
- A well-developed café and bar culture
Disadvantages:
- Very high competition
- Rent is expensive, especially in the centre and tourist areas
- Strict rules for terrace licences in some districts
- Overtourism problems (the local authorities are restricting new tourist licences)
Specifics:
- Knowledge of Catalan is important for dealing with the authorities
- Seasonality is less pronounced than in resort towns
- Many potential employees, but high turnover too
- Opening a bar in central Barcelona requires significant investment
Typical costs:
- Rent in the centre: 2,500–6,000 euros/month
- Traspaso: 50,000–200,000+ euros
- Average bill: 12–18 euros
Madrid
Advantages:
- Less dependence on tourism (more locals)
- A large market (more than 6 million people in the metropolitan area)
- A strong tapas and bar culture
- Year-round demand
Disadvantages:
- High competition
- Hot summers (air conditioning is important)
- High rents in popular districts
Specifics:
- Spanish (Castilian) matters more than English
- Office workers are an important lunchtime audience
- Very lively nightlife (bars stay open late)
Typical costs:
- Rent in the centre: 2,000–5,000 euros/month
- Traspaso: 40,000–150,000 euros
- Average bill: 10–16 euros
Valencia
Advantages:
- A growing tourist flow
- Lower rents and costs than in Barcelona/Madrid
- A less saturated market
- An excellent climate and beaches
Disadvantages:
- A smaller market (about 2.5 million in the metropolitan area)
- More pronounced seasonality
- Fewer English-speaking tourists
Typical costs:
- Rent in the centre: 1,200–3,000 euros/month
- Traspaso: 25,000–80,000 euros
- Average bill: 9–14 euros
Resort areas (Costa del Sol, Costa Brava, the Balearic Islands)
Advantages:
- Mass tourist flow
- High prices and average bill in summer
- The possibility of working in English
Disadvantages:
- Extreme seasonality (sometimes 80% of income in 4–5 months)
- Closing for the winter or minimal revenue
- Difficulties hiring staff
- Dependence on tourism trends
Specifics:
- It is important to maximise profit in the high season
- Many venues close for 3–4 months in winter
- You need a plan for the low season (discounts for locals, special events)
Useful resources and contacts
Official websites and portals
Government bodies:
- Agencia Tributaria (tax agency): agenciatributaria.es
- Seguridad Social (social security): seg-social.es
- Ministerio de Inclusión, Seguridad Social y Migraciones: inclusion.gob.es
Regional authorities:
- Catalonia: gencat.cat
- Madrid: comunidad.madrid
- Valencia: gva.es
Business and support for entrepreneurs:
- CIRCE (information centre for setting up a company): circe.es
- Cámaras de Comercio (chambers of commerce): camara.es
- Instituto de Crédito Oficial (state financing): ico.es
Professional associations
- FEHR (Federación Española de Hostelería y Restauración) — the Spanish federation of restaurants and hotels: fehr.es
- Asociación de Hostelería de Barcelona: gremihosteleriabarcelona.com
- Asociación de Hostelería de Madrid: asociacionhosteleriamadrid.org
Useful services
For business:
- Infojobs.net — finding staff
- Idealista.com — searching for flats in Spain and commercial property
- Glovo, Uber Eats, Just Eat — food delivery services (you can list your venue)
Suppliers:
- Makro — wholesale for HoReCa: makro.es
- Mercabarna — Barcelona wholesale market: mercabarna.es
- Mercamadrid — Madrid wholesale market: mercamadrid.es
Accounting and POS systems:
- Poster POS — a popular system for cafés and restaurants
- Lightspeed — POS and management system
- Loyverse — a free basic POS system
Educational resources
Courses and programmes:
- Escuelas de hostelería — cookery and hospitality schools offer courses for entrepreneurs
- Barcelona Activa — a support centre for entrepreneurs (free courses and consultations): barcelonactiva.cat
- Madrid Emprende — the equivalent for Madrid: madridemprende.es
Frequently asked questions
Do you need a licence to open a café?
The municipality decides. The national law 12/2012 abolished the prior licence for retail and some services, but food service is not on its list, so you cannot rely on that exemption. In some cities a self-declaration is enough; in others a full activity licence is required.
Do you need a food handler’s carné?
There has been no state certificate since 2010: Decree 109/2010 repealed the previous rules together with the approval of training organisations. The obligation to train staff in hygiene remains, but it is fulfilled by the employer and evidenced by the employer’s own records.
What is APPCC and can you do without it?
It is the hazard analysis and critical control points system (HACCP). You cannot do without it: Article 5 of EU Regulation 852/2004 requires it of every food business.
Can you set up a terrace straight away?
No. A terrace occupies public space, and the town council grants a permit for it separately from the permit for the activity itself, with its own conditions on area, hours and furniture.
What is the VAT rate in a café?
Food and drinks served on the premises, alcohol included, are taxed at the reduced rate of 10% (Article 91 of the VAT Law). The standard rate of 21% applies to alcohol sold in a sealed bottle to take away.
Is a complaints book mandatory?
Yes, and you must display a notice that you have one in a visible place. The form is set by the autonomous community, so it differs from region to region.
Official sources
- EU Regulation 852/2004 on the hygiene of foodstuffs — Article 5 on APPCC and Annex II, Chapter XII, on staff training
- Royal Decree 109/2010 — repeal of Decree 202/2000 on food handlers
- Law 12/2012 — abolition of the prior licence, list of activities and the 750 m² threshold
Conclusion: is it worth opening a café in Spain?
Opening a café in Spain is an achievable goal, but it requires serious preparation, sufficient capital and an understanding of the local culture and business environment. It is not an easy path to passive income on a sunny coast — it is hard work, risk and constant management. If the entry cost has turned out higher than you expected, consider less capital-intensive formats: a self-service laundrette and a car repair shop start with different figures and a different regulatory burden.
You should open a café in Spain if:
✅ You have experience in the restaurant business or are prepared to immerse yourself in learning
✅ You have sufficient start-up capital (at least 60,000–100,000 euros) plus a reserve
✅ You are prepared to take part in management personally (at least for the first years)
✅ You speak Spanish or are prepared to learn it
✅ You have a clear concept and understand your target audience
✅ You are patient and ready for the difficulties of the first year
✅ You want to live in Spain and build your future here
You should not open a café if:
❌ It is just a romantic idea of opening one without a real plan
❌ You have a limited budget and no reserve
❌ You expect quick profits (real profit usually appears after 12–18 months)
❌ You are not prepared to deal with bureaucracy and legislation
❌ You have no experience and no wish to hire an experienced manager
Key success factors:
- The right location — that is 50% of success
- A clear concept — knowing who you are opening the restaurant for
- Quality — food and service must be first-rate
- Financial discipline — controlling costs from day one
- Adaptability — willingness to change strategy based on feedback
- Legality — all documents and licences in order
- Team — hiring the right people and motivating them
A restaurant business in Spain can be very profitable and bring not only money but also the pleasure of working in a beautiful country with a high quality of life in Spain. However, success comes to those who approach it professionally, with realistic expectations and a willingness to work hard.
If you are seriously considering this idea of opening your own business, start small. Spend a few months in Spain, work in a local café or restaurant, study the market from the inside and build contacts. This will give you invaluable experience and show whether you are ready for such a step. In Spain you can bring the boldest business ideas to life if you approach it wisely and with preparation.
The information in this article is current as of December 2025. Legislation and requirements may change, so always check the latest information on the official websites of government bodies or consult professional lawyers and accountants.
- Why opening a café in Spain is a promising idea
- First steps: where to start
- Legal requirements and documents
- What the law requires: licences, hygiene and registration
- Financial planning
- Example tax burden for a café in Spain (autónomo)
- Finding and setting up premises
- Design, equipment and renovation
- Recruiting staff and management
- Working with suppliers and the menu
- Marketing and promotion
- Common mistakes and how to avoid them
- Regional specifics
- Useful resources and contacts
- Frequently asked questions
- Official sources
- Conclusion: is it worth opening a café in Spain?