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V0272-17 ·1 February 2017 ·consulta-vinculante Medium impact
Tax

Modifying mortgage loan repayment methods is subject to Stamp Duty

A company enquired whether a loan novation intended to change the repayment system (without altering the maturity date or interest rate) could qualify for the exemption under Law 2/1994. The DGT ruled that this exemption only applies if the interest rate or the term is modified; therefore, this case is subject to Stamp Duty.

In 6 key points

How it affects those involved

Companies seeking to restructure mortgage repayment schedules must account for the potential tax liability of Stamp Duty (Actos Jurídicos Documentados) if the modification does not involve changes to the interest rate or the loan term.

Lifecycle

2017-02-01PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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