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V3116-20 19 October 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · actos jurídicos documentados

Release of co-debtors in a mortgage loan is subject to Stamp Duty

A query was raised regarding whether the release of a spouse from mortgage liability during the liquidation of community property is subject to Stamp Duty (AJD) and who the taxable person is. The DGT ruled that the transaction is indeed subject to the tax and that the taxable person is the one requesting the document.

The question raised

Whether it would be necessary to settle 1.5 percent of the total mortgage liability due to the release of the ex-wife from her obligation to repay the loan, in application of the Supreme Court ruling of May 20, 2020 and, should said operation be subject to tax, who would be the tax debtor, the spouse released from mortgage liability or the financial institution that would benefit from the registration.

The DGT's ruling

The release of co-debtors from a mortgage-guaranteed loan through a public deed is subject to the modality of documented legal acts. The taxable person is the individual who requests or applies for the execution of the notarial document, such as the spouse who consents to the release of his ex-wife.

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