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V3397-20 ·23 November 2020 ·consulta-vinculante Medium impact
Tax

Release of a mortgage loan co-debtor is subject to Stamp Duty

A query was raised regarding whether the release of a spouse from mortgage loan liability, following the liquidation of community property, is subject to Stamp Duty (AJD). The Directorate-General for Taxes (DGT) ruled that it is subject to the tax, as it constitutes an act independent of the liquidation of the matrimonial property regime.

In 6 key points

How it affects those involved

This ruling clarifies that the discharge of a co-debtor's liability is a separate taxable event from the division of marital assets, potentially increasing tax liabilities during divorce or separation proceedings involving mortgage debt.

Lifecycle

2020-11-23PublishedPublished 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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