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V5438-16 23 December 2016 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · novación modificativa

Mortgage loan novation is only exempt from AJD if it modifies the interest rate or the term

A query was raised regarding whether modifications to mortgage loans (grace periods, changes to interest calculation and repayment systems) are exempt from the progressive Stamp Duty (AJD) rate. The DGT ruled that the exemption under Law 2/1994 applies only to changes in the interest rate or the term, and not to other financial modifications.

The question raised

Treatment within the scope of the Transfer Tax and Stamp Duty of the modificatory novation of loans and credits in the following cases:

The DGT's ruling

Deeds of novation of mortgage loans are exempt under the gradual modality of Stamp Duty only when the modification refers to the interest rate conditions or the alteration of the term. The exemption does not apply to other modifications permitted by Law 2/1994, such as the alteration of the amortization method or the increase/reduction of capital. The exemption cannot be extended by analogy to other cases.

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