The Official State Gazette (BOE) publishes this Friday the decree law by which the bank will have to pay the tax on the mortgages. The new norm becomes effective tomorrow Saturday, according to it gathers in the decree law, that consists of an only article with two sections, a derogatory disposition and three final dispositions. The great novelty with regard to what was announced in the Council of Ministers is that the Government has changed another article of the law so that the bank does not have to pay the tax on mortgages (the Tax of documented legal acts) in the mortgage loans that it grants to a series of entities, including the State, the Church and the political parties.
First, article 29 of the law that regulates the tax on documented legal acts (IAJD) is amended and it states that "the acquirer of the property or right will be subject and, failing that, the persons who initiate or request the documents notarial, or those in whose interest they are issued.When it is a loan deed with a mortgage guarantee, the lender will be considered a taxpayer, "that is, the bank and not the client.
What the government did not announce in its appearance on Thursday after the Council of Ministers is that banks would not have to pay the tax on mortgages when loans are granted to certain entities, including political parties, the State and the Catholic Church .
Thus, there is another modification in the tax according to which a section 25 is added in Article 45.IB) of the Royal Legislative Decree that regulates the tax so that the deeds of mortgage-backed loan in which the borrower is one of the persons or entities included in letter A) above ".
This article of the tax law includes the State, non-profit entities, savings banks and banking foundations in purchases of social work, the Institute of Spain and the Royal Academies, political parties with parliamentary representation, Catholic Church and churches, confessions and religious communities that have signed cooperation agreements with the Spanish State, the Red Cross and the ONCE, among others.
These agencies were exempt from the mortgage tax when the customer had to pay it. Now that banks have to pay for it, that exemption is also included. To the extent that it will be cheaper for banks to grant a mortgage to these entities than to an individual, they can also offer them better loan conditions.
It remains to be seen if the autonomous communities also maintain some exemptions in the payment of the tax. In some, for example, the disabled, large families, young people and other groups were totally or partially exempt from the mortgage tax. To the extent that the bank now assumes the full payment of the tax for these groups, they could be harmed by the regulatory change if the entities end up having to pass on the tax to them.