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Certain mercantile law public deeds are subject to a general tax rate of 0.3 %.Local TaxesIn GeneralLegislative Royal Decree Number 2 of 5 March 2004 regulates the local taxation system. TheLocal Authorities, under the referred legislation, are empowered to modify some points of thistype of taxes. The referred regulation states the following taxes:- Real Estate Tax. This tax is levied annually on owners of Urban or Rural Real Estates oron holders of rights in rem, based on the cadastral valued determined pursuant to theProperty Cadastral regulations.- Tax on Economic Activities. This Tax is levied annually on any professional or businessactivity done within the territory of the Municipality. Exempted are taxpayers who start abusiness activity and during their first two financial statements, individuals, and thosecompanies whose annual turnovers in the previous year were under EUR 1.000.000.Tax on Increase in Urban Land ValueThis Tax is levied on the increase in the value of any urban real state, when the land is transferredor levies a security interest of the referred properties. This tax is deductible for personal incometax purposes from the transfer value of Real Estate.Tax on Motor VehiclesThe Tax is levied annually on the ownership of any motor vehicles, on the basis of thehorsepower of the vehicle.Tax on Erection and Installation Projects and Construction workThe Tax is levied on the current cost of any Work or Construction activity that requires thepermit of the Municipality.37