These details are correct as far as we are aware, but purchasers should confirm them with their legal advisors before purchasing a property. As a rule of thumb, you should add on 9% to the purchase price to cover costs in buying a property in Spain.

6% TRANSFER TAX (I.T.P.) payable by the buyer for the purchase of any Real Estate (villas, flats, land, commercial premises, garages), provided the vendor is not a developer or normally trading in the business of resales.

7.5% (7% VAT and .5 % STAMP DUTY) for any VILLA, APARTMENT or GARAGE annexed to an apartment where the vendor is a developer, promoter or habitual trader in these properties.

NOTARY FEES AND PROPERTY REGISTRY INSCRIPTION FEES Notary fees should amount to no more than £566 , although the cost increases according to the number of pages or complexity of the title deed (eg. transcription of statutes, payment in stages). As an example, an apartment costing £186,314 will cost around £298 in notary fees, whilst a villa costing £373,000 will cost around £373 in notary fees. Any higher than this amount, the fees go up very slightly: eg. a £745,000 villa would cost around £410 in notary fees The property registry inscription fees run at 65% of the notary fees.

PLUS VALIA An "added value" tax based upon the increase of the Town Hall Index value of the price per square metre OF THE LAND from the prior (vendor's) purchase to the present sale.

This tax corresponds in principle to the seller, but, in common practice, is often paid by the purchaser. As there are several variable factors used in calculating this tax (location, area of land, building volume permitted, period of ownership of the vendor), the amount payable can vary substantially and should be verified before proceeding with the purchase. The basis of the calculation remains the same whether or not the land is built upon.

IN SUMMARY, the total official costs involved in purchasing property should less than 7%, more or less than 8.5% if VAT is paid of the purchase price, plus the PLUS VALIA if applicable.

OTHER COSTS INVOLVED IN OWNING SPANISH PROPERTY

LOCAL RATES Local rates are payable annually, and are calculated from the catastral or rateable value of the land assigned by the Spanish Tax Office. The catastral value takes into account the value of the land plus the value of the building, according to type, location, and usage. Upon this value, each municipal Town Hall decides on the percentage to be charged in respect of local rates. Before you purchase any property you should have an idea of the annual costs involved.

RUBBISH COLLECTION & WATER RATES The rubbish collection rate is applied by the Town Hall according to the property and payable every 6 months. Water consumption is calculated by the water meter and is payable every 3 months. Payment can be made directly at the Town Hall or by bank with direct debit instructions.

COMMUNITY FEES As a general explanation, the COMMUNITY OF CO-PROPRIETORS or HOMEOWNERS' ASSOCIATION, is a legal entity comprised exclusively of the owners of the apartments in a building, or villas on an estate. The purpose of the Community is to own and maintain the COMMON ELEMENTS of the building or estate in question, and a homeowner participates in the expenses of the community on a pro-rata basis with the other owners. Usually, his percentage of the costs is fixed by the size of the apartment, or plot, divided by the total area of all the apartments or plots.

A budget for the annual community expenses is presented at the ANNUAL GENERAL MEETING OF CO-PROPRIETORS, and the owners or their representatives must approve the budget by majority vote of those present at the meeting. Expenses can vary substantially, according to the services required and normally include salary and social security of the hall porter, common garden maintenance, lift maintenance, repairs to building, refuse collection, electricity for lighting common areas, insurance for building, security if required, and administration fees. The President of the community must, by law, be an owner and serves without pay.

INSURANCE A standard insurance cost for a £189,000 apartment with contents valued at £30,000 would be £175 per year. One should note that in an apartment building, the Homeowners' Association is required to insure the building for its reproduction cost. Therefore, the individual's insurance policy for the apartment need not cover the entire value of the apartment, but only damages to the interior of the apartment, its contents, and third party liability. It is also adviseable to insure the building at first risk in case the Community insurance is not comprehensive. For a villa of £558,000 with contents insured at £110,000 the annual insurance would be in the area of £960.

GARDENERS The upkeep of the garden is essential to the maintenance of your property and will of course depend on the type of home. As a guide, the hourly rate is about £8. Apartments and townhouses have the communal garden areas tended by a contracted gardener and the cost is included in your community fees.

ELECTRICITY Charged bimonthly with minimum rates applicable (whether you are in residence or not), varying according to the amount of electricity your house could potentially use with all power and lights turned on. The minimum charge for an apartment might be between £15 and £23 per month; for a villa perhaps £37 to £55 per month, depending largely on the electrical installation. Usage is £5p per Kwh plus tax.. It is therefore difficult to give guidelines, but rates are slightly higher than in many European countries. But with all the sunshine in Duquesa, one uses less lighting and heating than in other countries!

TELEPHONE Charged also bimonthly. Standard rates vary according to equipment installed, but can be in the region of £9 per month including a touch-dial telephone. Direct dial calls area assessed on a counter system. A 3 minute call (daytime business hours) to any European Community country, direct dial, presently costs about 93p. Broadband internet connections are available in large parts of Duquesa.