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Interest Rate: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Doctrinal reversal High confidence 11 rulings · 2014–2024

Current position

Loans with interest rates below the normal market rate are classified as benefits in kind under Personal Income Tax (IRPF). These benefits are attributed to the person holding the status that generates the right to the benefit, even if the employment relationship with the entity no longer exists. The valuation of the benefit must be carried out according to the price offered to the public, deducting ordinary or common discounts.

The DGT's position has undergone a change in subject matter. Initially, rulings focused on the exemption from Stamp Duty (AJD) in novations that modified the interest rate. From 2023 onwards, the doctrine shifts towards the tax classification of loans with preferential rates, defining them as benefits in kind.

Turning points

  1. V2053-23

    The focus shifts towards the classification of loans with rates below market as benefits in kind under article 11.2 of Law 35/2006.

  2. V0991-24

    It establishes that the classification as a benefit in kind is maintained even if no employment relationship with the entity exists.

Analysis based on 10 of 11 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

11
V1380-18 25 May 2018

Mortgage loan novation to change interest rate is exempt from Stamp Duty

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
novación hipotecariaactos jurídicos documentadoscontenido valuableexención fiscaltipo de interés TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 31.2TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 45.I.C.24
Affects CompanyExpat · Non-residentIndividual

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