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V0689-14 12 March 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · arrendamiento financiero

Real estate leasing novation only incurs AJD tax if the total sum of instalments increases

The applicant asks whether a novation of a leasing contract that modifies the interest rate and extends the term is subject to ITPAJD. The DGT rules that if the sum of the new instalments is equal to or less than the previous ones, there is no taxable value and therefore no tax liability.

The question raised

Taxation under the Transfer Tax and Documented Legal Acts Tax.

The DGT's ruling

The novation of a real estate leasing contract, being registrable in the Land Registry, may be subject to the proportional quota of documented legal acts if its object is a sum or valuable thing. If the sum of the new installments is equal to that of the previous ones, no new valuable content is produced. Taxation will only occur if the sum of the new installments is greater than the sum of the previous installments, with the tax base being the difference between both sums.

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