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V2288-14 5 September 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · novación modificativa

Mortgage loan novation to extend term is not exempt from AJD if the interest rate remains unchanged

A query was raised regarding whether the rectification of a mortgage to extend its maturity term from 2013 to 2016 is exempt from ITP and AJD. The DGT clarifies that the AJD exemption requires the modification to affect the agreed interest rate, which may also involve an alteration of the term.

The question raised

Taxation of the aforementioned rectification in the Transfer Tax and Stamp Duty, in the sense of confirming whether it would be exempt from taxation.

The DGT's ruling

For the deed of modificative novation of a mortgage loan to be exempt from the gradual rate of stamp duty, the modification must refer to the conditions of the interest rate initially agreed upon or currently in force. Only in that case, jointly with the modification of the rate, may the alteration of the term be agreed upon. If the novation consists solely of the extension of the term without modifying the interest rate, the requirements for the exemption are not met.

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