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V1002-14 8 April 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · subrogación

Subrogation of mortgage credits is exempt from Stamp Duty

A query was raised regarding whether the exemption for the subrogation of mortgage loans under Law 2/1994 also applies to the subrogation of credit contracts. The Directorate General for Tax Assurance (DGT) ruled that the exemption applies to mortgage financing in general, whether provided through a loan or a credit facility.

The question raised

Whether the exemption established in Article 7 of Law 2/1994 could be applied to the subrogation of the financing contract.

The DGT's ruling

The exemption provided in Articles 7 and 9 of Law 2/1994 applies to mortgage financing in general, regardless of whether a loan or credit model is used. Therefore, the subrogation of a mortgage credit creditor is exempt from Transfer Tax and Documented Legal Acts Tax, provided that the requirements of Law 2/1994 are met.

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