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V0701-19 28 March 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · amortización de préstamo

Mortgage loan repayment is not subject to ITPAJD, but mortgage cancellation is exempt

A taxpayer inquired whether the cancellation of their share of a mortgage loan following a donation is subject to ITPAJD. The DGT clarified that repaying the loan does not constitute a taxable event, whereas the formal cancellation of the mortgage does, although it is exempt.

The question raised

Taxation of the transaction.

The DGT's ruling

The amortization of a mortgage loan is not subject to Transfer Tax and Stamp Duty. On the other hand, the acts of formal cancellation of the mortgage are subject to the stamp duty modality, but are exempt from the tax pursuant to article 45.I.B.18 of the TRLITPAJD.

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