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A query was raised regarding whether a mortgage novation deed that modifies the term, interest rate, and repayment system is exempt from Stamp Duty (Actos Jurídicos Documentados). The DGT has determined that the exemption under Law 2/1994 applies only to changes in interest rates or terms, and does not extend to modifications of the repayment system.
Mortgage holders seeking to change their repayment method (e.g., from constant instalments to increasing instalments) will incur Stamp Duty costs, even if the interest rate or term remains unchanged.
The tax team reviews your specific situation.
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