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The guarantee of
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Expenses and Taxes
It is herein stated that the first delivery of property is subject not only to VAT at the current rate when the payment is made, at present and for this kind of transaction being 7%, but also to Stamp Duties at a rate of 1% which will become due upon signing the purchase-selling title deed, and shall be borne by the PURCHASER.
On the other hand the VENDOR shall be liable to pay the Town Hall Tax (Plusvalía Tax). The expenses arisen from the preparation and registration of the new building declaration and horizontal division and constitution or division of mortgage to finance the construction, as well as the cancellation of mortgage in case the purchaser decides not to take over, shall be borne by the selling party. The rest of the taxes and expenses arisen from the purchase-selling agreement and purchase-selling title deed and registration at the Land Registry, and taking over of mortgage if applicable, shall be borne by the PURCHASER.