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V4995-16 17 November 2016 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · actos jurídicos documentados

Mortgage loan novations are only exempt from AJD if they modify the interest rate or the term

The applicant asks whether mortgage loan modifications are exempt from the gradual AJD levy and if certain clauses are subject to the tax. The DGT rules that the exemption under Law 2/1994 is limited and cannot be applied by analogy to other types of modifications.

The question raised

Application of the tax benefits provided for in Law 2/1994, of March 30, and article 45.I.C.23 of the Royal Legislative Decree approving the Consolidated Text of the Tax on Property Transfers and Documented Legal Acts, and the confirmation of the non-subjectivity of certain conventions that may be included in a public deed.

The DGT's ruling

The exemption from the gradual AJD modality only applies to novation deeds that modify the interest rate or the payment term. The exemption does not apply to capital increases or reductions, nor to the modification of the amortization system. Clauses that do not involve valuable or registrable content are not subject to the tax. In the event of an increase in principal, the tax base shall be the amount of the increased mortgage liability.

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