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V1148-22 25 May 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · actos jurídicos documentados

Release of a co-debtor in a mortgage loan is subject to Stamp Duty

An individual requests to be released from liability in a mortgage loan following the dissolution of a co-ownership. The DGT has determined that this act of debt release is indeed subject to the Stamp Duty (Actos Jurídicos Documentados) tax.

The question raised

First question posed: Whether the Transfer Tax and Documented Legal Acts Tax would accrue again in this operation, as maintained by the lending entity, despite the absence of a capital increase in the novation and notwithstanding that the tax has already been paid in the deed of extinction of the co-ownership and subrogation in the year 2013.

The DGT's ruling

The release of co-debtors from a mortgage-guaranteed loan via public deed is subject to the modality of documented legal acts. The taxable person shall be the individual who requests or seeks the execution of the notarial document, in this case, the awardee of the property who consents to the release of the other co-holder.

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