Restrictions on Banking in Spain are determined by the status of the account holder i.e. Resident or Non Resident.

1. WHO IS CONSIDERED TO BE A RESIDENT IN SPAIN?

- Spanish fiscal legislation establishes that foreigners are Residents in Spain if:

• They live in Spain for more than 183 days per year.
• Their business, professional activity or economic interests are based in Spain.
• They have a spouse (from whom they are not legally separated) or underage children who are dependent on them, who are resident in Spain.

- Therefore. Non-Residents are those who fulfil none of the above conditions.

2. WHAT TYPES OF ACCOUNT CAN I OPEN IN SPAIN AS A NON-RESIDENT?

CURRENT ACCOUNTS. These have complete liquidity, allowing holders to make withdrawals and both domestic and international transfers. In the case of Bancaja, these operations can be performed through their branches, and also through the Telephone Banking system and the Internet. All types of standing orders are permitted, both in terms of credit (salary, pension, revenue from investments) and debit (rent payments, bills for water, gas or electricity, etc.). A small maintenance fee is often charged.

TERM DEPOSITS. An ideal product for obtaining a no-risk return over a fixed period. At the beginning of the agreement, it is possible to opt for automatic renewal, adding the interest or not, as you prefer. These accounts do not have a facility for standing orders, either in terms of credit or debit, nor do they have a facility for drawing higher than that of other accounts, but they have no liquidity until reaching maturity. The main feature of these Non-Resident accounts is that the revenues obtained from them are not subject to tax deductions, provided that the relevant "Declaration of Fiscal Residence" is completed. All these accounts may be opened in any currency quoted in Spain, as well as in Euros.

3. HOW DO I SEND MONEY TO MY ACCOUNT IN SPAIN?

The quickest, safest and most convenient way to send money to your account in Spain is to issue a personal instruction to your bank to send a SWIFT transfer to your account in the relevant Spanish bank. In order to do this, you only need to provide your bank with your full bank account number, which you can obtain from your cheque book or from a statement, and inform them of the SWIFT code of the Spanish bank where your account is held.

4. HOW DO I SET UP STANDING ORDERS? In exactly the same way as in your own country. The majority of Spanish banks will complete all the necessary formalities for paying electricity, water and telephone bills, insurance premiums, etc., by standing order. At Bancaja all you need to do is provide a photocopy of your most recent bills that you would like to pay by standing order.

5. HOW MUCH CASH CAN I BRING INTO SPAIN? There is no legal limit, but if you are a Non-Resident and you are carrying over Euros 6,000, In cash, you must declare it to Customs, or at bank, in order to pay it into an account or invest it in Spain.

6. HOW MUCH CASH CAN I TAKE OUT OF SPAIN?

There is no legal limit, but if you are a Non-Resident and wish to take cash out over Euros 6,000. In cash, you must make an Exportation Declaration, either to Customs or to the Bank of Spain, or any other Bank.

7. BUYING A HOME IN SPAIN? WHAT DO INEED TO KNOW?

CONTRACTS:

A private contract of Sale is signed between the buyer and the seller. Once the property is completed, and before it is handed over to the buyer, the Notary will prepare the Public Deed of sale, which must be signed by the buyer and the seller. Once this Deed has been signed, the buyer receives a Simple Copy thereof. The Notary presents the original Deed for inscription in the Property Register and once inscription has been carried out, the Deed is returned. Inscription may take several months. In the meantime, the Simple Copy of the Deed of Sale constitutes the official title to the property.

PAYMENT:

For properties that are ready for immediate occupation, payment in full is required before the Deed of Sale can be signed and possession can be handed over. In the case of properties that are still under construction, payments in instalments are required, as the building work progresses. Taxes applicable to the purchase of new and previously occupied homes. The following taxes are applicable to the acquisition of a new home: - 7% VAT (Value Added Tax). - 0.5% Tax on Capital Transmissions and Deeds. The following taxes are applicable to the acquisition of a previously occupied home: - 7% Tax on Capital Transmissions and Deeds. MORTAGE LOANS: A mortgage loan is used for the acquisition of a home and is guaranteed by the property itself. This guarantee is inscribed in the Registry of Property and allows the bank to grant a long-term loan for a large sum.

• AMOUNT OF MORTAGE LOAN
  
  It is possible to finance as much as 70% of the estimated value of the home but it is subject to Bank acceptance and proof of income will be required.
• TERM OF LOAN
  
  The maximum term of the loan can be up To 25 years.
• INTEREST
  
  The interest rate is variable. The initial interest rate is fixed for 12 months, and from then on it is set every year, on the basis of the EURIBOR one year rate, to which a differential is applied.

The Euribor is the rate at which the various European financial institutions lend money between themselves. It is am official rate, published daily by the European Banking Federation.

WHAT IF I WANT TO SELL MY HOME IN SPAIN?

The percentage that the buyer must retain (as an advanced payment on the tax that the seller must pay) will be 5% of the sales price. There is no legal limit on transferring funds out of Spain. The most quickest, safest and most convenient way to send money from your account in Spain to your account in another country is to issue a personal instruction to your Spanish bank to send a SWIFT transfer to your account at the relevant bank. In order to do so, you simply need to provide your Spanish bank with your full bank account number, and inform them of the SWIFT code of the bank to which you want to send funds.

Costahouse recommend , with coastal offices in Malaga, Fuengirola and Marbella. New offices will open during 2004 in Benalmadena and Torremolinos. If you require further information on any of the above subjects, we will be happy to put you in direct contact with a Manager from the Bank.