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V0266-16 25 January 2016 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · redistribución de la responsabilidad hipotecaria

No taxation for mortgage redistribution, but AJD applies to loan extension

A query was raised regarding whether extending a mortgage to include a garage, free of encumbrances, constitutes a redistribution of mortgage liability or a new constitution. The DGT ruled that there is no redistribution as the specific liability for each property is not specified; however, the loan extension is subject to Stamp Duty (AJD).

The question raised

Given that the increased liability falls upon the parking space, without modifying the liability of the apartment, clarification as to whether a redistribution exists and whether taxation for Documented Legal Acts is applicable for this concept and, if so, what the tax base would be.

The DGT's ruling

No redistribution of the mortgage guarantee occurs if the portion of liability corresponding to each property is not specified. Regarding the loan extension, whether through the expansion of the existing mortgage or through the creation of a new one on the parking space, it shall be taxed under the variable rate for Documented Legal Acts. The tax base shall be the amount of the increased principal, plus agreed interest and amounts stipulated for costs and expenses.

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