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V1644-14 27 June 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · rango hipotecario

Consent to maintain mortgage range in a novation is not subject to variable rate ITPAJD

A query was raised regarding whether a clause consenting to maintain the mortgage range in a novation deed is subject to the Stamp Duty on Documented Legal Acts (ITPAJD). The Directorate General for Tax (DGT) ruled that such a stipulation does not constitute a taxable event for the variable portion of the notary document.

The question raised

Whether the stipulations regarding the consent to the maintenance of the mortgage rank constitute a factual scenario subject or not to the tax on documented legal acts.

The DGT's ruling

Clauses in which creditors express their agreement with the novation and the maintenance of the previous mortgage rank are not subject to the variable rate of the ITPAJD. This is because, as they do not involve an alteration of the rank other than postponement, they lack taxable content according to article 31.2 of the Recast Text.

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