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V1306-22 9 June 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · actos jurídicos documentados

Modifications to maximum mortgage loans are taxable if they contain valuable economic content, regardless of changes to liability

A financial institution has enquired whether modifications to a maximum mortgage loan (such as extensions or changes to the repayment system) are subject to the variable rate of Stamp Duty (Actos Jurídicos Documentados). The Directorate-General for Tax (DGT) has ruled that taxability does not depend on whether the mortgage liability changes, but rather on whether the modified clauses contain quantifiable economic content.

The question raised

Taxation of the proposed operation under the Transfer Tax and Stamp Duty, in its Stamp Duty modality:

The DGT's ruling

Liability for the variable rate of the Stamp Duty requires that the novation constitutes a new taxable event with quantifiable economic content. It is not necessary to modify the mortgage liability for taxation to occur; it is sufficient that the added or modified financial clauses (such as grace periods or extensions) are quantifiable. The tax base shall be determined by the added interest and additional costs entailed by said clauses. Likewise, uncertainty regarding the payment of a commission (such as an exit fee) does not prevent its quantification if a maximum amount can be established.

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