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V2042-14 ·28 July 2014 ·consulta-vinculante Medium impact
Tax

Mortgage loan novation changing the repayment system is subject to ITPAJD

A taxpayer inquired whether modifying a mortgage loan to change the repayment method (from French to irregular) is subject to tax. The DGT ruled that since the novation is not limited to the interest rate or the term, the exemption does not apply, and it must be taxed under the documented legal acts modality.

In 6 key points

How it affects those involved

This ruling clarifies that any significant modification to a mortgage loan's structure, beyond just interest or term, triggers the tax on documented legal acts.

Lifecycle

2014-07-28PublishedPublished 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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