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A query was raised regarding whether modifications to mortgage loans (grace periods, changes to interest calculation and repayment systems) are exempt from the progressive Stamp Duty (AJD) rate. The DGT ruled that the exemption under Law 2/1994 applies only to changes in the interest rate or the term, and not to other financial modifications.
This ruling clarifies that most structural changes to mortgage terms do not qualify for tax exemptions, potentially increasing the tax burden for borrowers seeking to renegotiate repayment methods.
The tax team reviews your specific situation.
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