From November 10, 2018, the lender becomes the liable party for the Stamp Duty on mortgage loans.
After a few weeks of uncertainty about who had to pay the Stamp Duty on mortgage loans, on November 8 the Government issued Royal Decree-Law 17/2018, of November 8, which modifies articles 29 and 45 of the Consolidated Text of the Law on Property Transfer Tax and Stamp Duty, approved by Royal Legislative Decree 1/1993, of September 24.
Article 29 of this regulation expressly states that the liable party in the case of mortgage loan deeds will be the lender, that is, normally the financial institution. This clarifies that in mortgage loan deeds, the lending financial institution will be responsible for paying the Stamp Duty (AJD) fee, rather than the borrowing clients.
Article 45 incorporates a new exemption applicable to mortgage loan deeds when the borrower is one of the persons or entities included in letter a) of article 45.IA) TRITP (the State, the autonomous communities, the territorial Public Administrations, non-profit entities covered by Law 49/2002, Savings Banks and banking Foundations, the Catholic Church and other religious denominations that have signed cooperation agreements with the Spanish State, the Spanish Red Cross and ONCE, etc…)
However, the modifications introduced by Royal Decree-Law 17/2018 have not only affected the Stamp Duty, but have also extended to Corporation Tax. Specifically, Article 15 of the Corporation Tax Law has incorporated, as a new non-deductible expense, the tax debt paid for Stamp Duty in cases of mortgage loan deeds.
It should be clarified that tax debt includes not only the tax due on Stamp Duty (AJD), but also late payment interest and tax surcharges. Surcharges were no longer considered tax-deductible, but late payment interest is generally tax-deductible. Therefore, this is the only instance in which late payment interest linked to a tax liability will not be tax-deductible.
If you require further information or have any questions, please contact us via email at ambit@ambitassessor.com or at our offices.
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A graduate in Business Administration from the University of Barcelona, she continued her education with a Postgraduate Diploma in Accounting and Management Control from Pompeu Fabra University, and completed various courses in tax and fiscal matters offered by the Terrassa Chamber of Commerce, the Barcelona Bar Association, and the Center for Financial Studies. Before joining Àmbit Assessor in 2001 as a tax and accounting consultant, she worked as an administrative assistant at Caixa Manresa and Banc Sabadell and as a tax information call center operator at the Spanish Tax Agency. For three years, she served as treasurer of the L'Alzinar Recreational and Cultural Society, a position she held concurrently with her work at Àmbit Assessor.
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