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V1380-18 25 May 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · novación hipotecaria

Mortgage loan novation to change interest rate is exempt from Stamp Duty

A query was raised regarding whether a mortgage novation deed intended to change an interest rate from variable to fixed is subject to tax. The Directorate General for Tax Assurance (DGT) has determined that although the operation is registrable and possesses taxable content, it is exempt under Law 2/1994.

The question raised

Question posed: Liability of the aforementioned deed to the Transfer Tax and Documented Legal Acts Tax.

The DGT's ruling

Deeds of novation of mortgage loans that modify the agreed interest rate are exempt under the gradual modality of Documented Legal Acts pursuant to Article 9 of Law 2/1994. This exemption also allows for the simultaneous agreement to alter the term. For the operation to be subject to tax, it must be a first registrable copy with valuable content, but the specific exemption prevails in this case.

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