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V0152-19 23 January 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · póliza de crédito

Lender is the taxable person in mortgage-backed loan deeds

A query was raised regarding who is liable for tax in a mortgage granted to secure a credit facility signed in a separate document. The DGT ruled that the credit facility is taxed as a loan and that the lender is the taxable person.

The question raised

Who is the taxable person for the tax in the case of a mortgage as security for a credit facility executed in an independent document.

The DGT's ruling

The credit facility is settled as a loan and the mortgage constituted simultaneously is taxed exclusively under that concept. If the lender is not a taxable person for VAT purposes, the transaction is exempt. If the lender is a taxable person for VAT purposes, it is not subject to transfer tax on onerous transfers and the variable rate of the notarial deed applies. The taxable person is the lender.

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