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V0490-20 27 February 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · novación modificativa

Removal of floor clauses via novation is not subject to Stamp Duty (AJD)

A query was raised regarding whether the novation of mortgage loans to remove floor clauses is exempt from Stamp Duty (Actos Jurídicos Documentados). The Directorate General for Taxes (DGT) ruled that it does not constitute a taxable event, as it does not involve a valuable sum or asset.

The question raised

Whether the modification of mortgage-backed loans, in which only the floor clause would be eliminated, may benefit from the exemption for Documented Legal Acts, notary documents, regulated in Law 2/1994 of March 30, on the subrogation and modification of loans, or, conversely, whether it would be subject and not exempt under any modality.

The DGT's ruling

The modificative novation of a mortgage loan, for the sole purpose of eliminating the floor clause, does not constitute a taxable event under the modality of Documented Legal Acts, notary document. This is due to the fact that the deed does not have as its object a valuable amount or thing. It also does not constitute a taxable event under the other two modalities of the tax.

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