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V1468-14 3 June 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · subrogación hipotecaria

Exemption for subrogation and modification of mortgage loans also applies to mortgage credits

A query was raised regarding whether the exemption under Law 2/1994 concerning the subrogation and modification of mortgage loans also applies to mortgage credits. The Directorate General for Taxes (DGT) has ruled that it does, stating that the exemption must apply to mortgage financing in general, regardless of whether a loan or a credit facility is used.

The question raised

Whether the exemption established in Articles 7 and 9 of Law 2/1994, of March 30, regarding the subrogation and modification of mortgage loans could be applied to mortgage financing in general, regardless of the instrument model (loan or credit) used.

The DGT's ruling

The exemption provided in Articles 7 and 9 of Law 2/1994 must be applied to mortgage financing in general, regardless of the instrument model (credit or loan) used. This interpretation is based on the fact that the Transfer Tax and Documented Legal Acts Tax grants uniform treatment to loans and credits, and that the distinction between both figures is meaningless in view of the purpose of Law 2/1994.

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