Investment in a Sports Center in Tenerife 🌴

Location: Southeast Tenerife 🌞
Purchase price: €1,280,000 💶
Renovation and expansion: €250,000 🔧
Total investment: €1,530,000 💰
Occupancy rate: 80% 📊
Tax system: ZEC 4% 📉, IGIC 7% 💸

Project Description 🏗️

Fully equipped sports and leisure complex ⚽🎾
Area: 3,421 m² 📏
Location: South Tenerife, near tunnels 🛣️
11 padel courts (2 existing, 9 new) 🏅
Bar-restaurant 🍹, 350 m² clubhouse 🏠, parking 🚗

Financial Model (80% occupancy) 💼

Revenue source | Annual revenue (€)
Padel court rental | 1,074,960
Training and coaching | 90,000
Tournaments and championships | 45,000
Bar-restaurant | 65,000
Rentals and shop | 25,000
Total revenue | 1,299,960

Operating expenses (30% + €11,620 land tax, water, electricity): €401,608 💡
Profit before tax: €898,352 💸
ZEC tax 4%: €35,934 🧾
Net profit: €862,418 per year 🏆

Key Metrics 📈

Metric | Value
Investment | €1,530,000 💶
Net profit / year | €862,418 🏅
ROI after tax | 56.4% / year 📊
Payback period | ≈ 1.77 years ⏳

Occupancy Sensitivity ⚖️

Occupancy % | Revenue (€) | Profit (€) | ROI (%) | Payback (years)
70% | 1,137,465 | 765,121 | 50.0% | 2.00
80% | 1,299,960 | 862,418 | 56.4% | 1.77
90% | 1,462,455 | 959,715 | 62.8% | 1.59

Advantages of the Canary Islands 🌞🌴

IGIC 7% vs 21% VAT in mainland Spain
ZEC 4% corporate tax 📉
EU special economic zone 🌍
Year-round tourism, stable client base 🛎️
Transparent European jurisdiction 🏛️

Project Benefits 🎯

Fast payback, under 2 years ⚡
Net profit > €860,000 per year 💸
Padel is the fastest-growing sport in Europe 🎾🔥
Scalability: academy, tournaments, franchise 📈
Increase in complex value to over €2 million 📊