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The consultant asks whether the deed releasing a co-borrower from a mortgage loan after a condominium dissolution is subject to documented legal acts tax. The DGT confirms that it is subject to this tax, and the taxpayer is the party requesting the deed.
Question posed: Taxation of the transaction.
The release of co-debtors of a mortgage-backed loan via public deed is subject to the modality of documented legal acts under the ITPAJD. The taxable person is the individual who requests or petitions the execution of the notarial document, as this does not constitute a transfer of an asset or right but rather a debt. The tax rate shall be that established by the Autonomous Community or, failing that, 0.50 percent.
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