Skip to content
Back to index
V1914-18 29 June 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · novación hipotecaria

Mortgage interest rate modification is exempt and new valuation is not subject to AJD tax

A query was raised regarding whether a mortgage novation deed that modifies the interest rate and updates the property valuation should be subject to AJD (Stamp Duty). The DGT ruled that the interest rate modification is exempt and the new valuation is not subject to the tax as it lacks taxable content.

The question raised

Taxation of the notarial deed of mortgage subrogation with modification of the interest rate and new appraisal of the dwelling.

The DGT's ruling

The novation of a mortgage loan that modifies the agreed interest rate is exempt from the gradual AJD (Stamp Duty) installment, provided that the creditor is a financial institution pursuant to Law 2/1981. On the other hand, the deed documenting the modification of the appraisal value is not subject to the tax because it fails to meet the requirement of having taxable content, as the appraisal does not produce legal effects on the registered mortgage.

Book your free first meeting