The final decision of the Supreme Court to continue to pass on the amount of the Stamp Duty on citizens (as in the last 23 years) has had an immediate reaction. The Government will approve today in the meeting of the Council of Ministers a Royal decree Law so that it is the bank that carries the tribute. The President of the Government highlighted yesterday at a press conference that "the Spanish will not pay the mortgage tax again, the bank will do it". The reality may be quite different.
The main executives of the Spanish banks already announced in October, during the presentation of the results of the first nine months that the IAJD is a tribute and that the entities have not entered a single euro of it, and warned that if the Supreme Court had just ratifying the controversial sentence of October 18, they would have to pass it on to the price of the mortgages because it will suppose an added cost in their activity of lender.
In the first seven months of this year, 203,850 mortgages have been signed, according to the data of the General Council of Notaries. Throughout 2017, 312,843 were formalized. With the latest data from the Bank of Spain, the interest rate (APR, the most used) of a mortgage loan was 2.21% in the month of September. For the INE, the rate is somewhat higher, 2.62% and the average term of 24 years. When the Royal Decree Law comes into force, the rate conditions will vary slightly because the bank will not absorb the impact of around 500 million of average that can be assumed by the tax, taking into account that it is between 0.5% and 1.5% of the amount of the loans. According to the INE, the average mortgage granted in August (latest data published by the INE) for the purchase of a home was 122,424 euros. And 28,772 loans were granted.