New property taxes

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BREAKDOWN OF TAXES AND DISBURSEMENTS TO BE MET AT THE TIME OF COMPLETION OF PURCHASE OF NEW PROPERTY IN SPAIN.

Example for a property purchased for a declared price of 150.000,00 Euros / 96.153, 85 Sterling pounds *.

  Euros Sterling
PURCHASE PRICE 150,000 107,142.86
     
7% VAT on the amount of the purchase 10,500 7,500
1 % Stamp Duty Tax 1,500 1,071.43
Notary fees. Aprox.(1) 450 321.43
Land Registry fees. Aprox. (2) 350 250
Legal fees (0,75% of the total purchase price) 1,204 860
Plusvalia Tax. (3)    
     
TOTAL AMOUNT 164,004 117,145.71

*Rate applied: 1 Euro = 1.40 Sterling pounds

(1) Notary's fees are calculated according the number of pages of the Title Deed, the number of parties involved in the transaction and the declared price. Due to these circumstances, it is not possible to determine the exact amount to be paid for this concept, but this amount will no be higher that the mentioned.

(2) Land Registry fees are determined according an official scale of fees fixed by law. This scale is applied by the Registrar having in mind the Title Deed signed, declared price, parties involved and any other extra circumstances of the transaction. It is not possible to determine the exact amount to be paid for this concept, but this amount will no be higher that the mentioned.

(3) Plusvalía Tax is a local tax to be paid by the seller of the property to the Municipality where the property is located. Amount to be paid is calculated according the number of years that have passed since the last transaction and the increase in value of the land on which the property is built. Sometimes it may be stipulated that the buyer pays it so it is important that this point be negotiated before signing Purchase Deed. It is not possible to determine the exact amount to be paid for this concept.