What will it really cost me?

There is more to the cost of buying and owning property in Spain than the purchase price of the property itself. There are transfer taxes and fees to be paid, followed by annual property taxes.

Transfer taxes and fees will probably be less than 10% of the purchase price, but if you are unlucky they could go as high as 15%. And then there's your lawyer to be paid.

You have two taxes and two fees to pay on the transfer of the property. They are:

• Notary fee. You will have to pay the Notario a fee fixed by the official scale. The fee varies. If there is a mortgage on the property this will entail an extra deed and charge.

• Property registry. This is the fee for the registry of the property in the official Registro de la Propiedad. This fee will be of similar amount to the notary fee. Your lawyer can tell you the exact amount before you buy.

• Transfer tax. Called Impuesto de Transmisiones Patrimoniales. This transfer tax is fixed at 7% of the value declared in the contract. You will pay 7% IVA (VAT) if you buy a new property from a developer plus half of one percent in stamp duty.

Finally, you have your lawyer's fee. This as a rough guide usually works out at about 1% of the purchase price. This may all seem a little complicated upon first reading, but in reality it is a standard procedure which your lawyer will guide you through. We can recommend English speaking lawyers to you if you do not have any personally recommended lawyer of your own acting for you.

You should receive copies of all the paid up receipts relating to you new property when you purchase. The local town hall's annual real estate tax is known as the IBI or Impuesto sobre Bienes Inmuebles. The previous owner must give you the receipts from the previous year.

The official assessed value of the property used to asses other taxes is shown here as the Valor Catastral. Your lawyer should ensure there is no outstanding debt from previous years. Also, bear in mind that rubbish collection and sewerage may be included in this tax or charged separately.

All non-resident owners are liable to two annual property taxes. This can be a complex issue, so we would therefore advise you to contact a fiscal advisor, who will act for you to ensure these taxes are paid on time.