This Saturday will come into force Royal Decree-law 17/2018approved in the Council of Ministers this Thursday which modifies the revised text of the law on Transfer Tax and Stamp Duty (ITP and AJD) and establishes thatit will be the bank, and not the client, who must pay said tax.
However, the new text establishes that banks will beexempt from paying this tax on loans granted to Public Administrations, political parties or the Church, among other entities.
As stated in the Official State Gazette (BOE), as of this Saturdaythe acquirer of the property or right shall be a taxable person and, failing that, the people who initiate or request the notarial documents, or those in whose interest they are issued. When it comes to loan deeds with mortgage collateral,The lender, ie the bank, is considered a taxable person.
In addition, the Royal Decree introduces a new article in the section on exemptions for which "mortgage loan deeds in which the borrower is one of the persons or entities included in letter A) above" will not be subject to the tax. .
Exceptions to the tax
These entities are, on the one hand, the State and the Territorial and Institutional Public Administrations and their establishments of beneficence, culture, Social Security, teachers or scientific purposes.
Likewise, establishments are exempt orCharitable or cultural foundations, Social Welfare, teachers or scientific purposes, of a private nature, duly classified, provided that the positions of employers or legal representatives thereof are free and accountable to the Administration. The tax benefit will be granted or revoked for each entity by the Ministry of Economy and Finance, in accordance with the procedure that is determined by regulation, and savings banks may only enjoy this exemption in terms of acquisitions directly intended for their social works .
Also exempt are associations declared of public utility dedicated to the protection, assistance or social integration of children, youth, the elderly, people with physical or mental disabilities, marginalized, alcoholics, drug addicts or terminally ill diseases. . Finally, the IAJD will not be paid in the mortgages granted to the Spanish Red Cross.
Not deductible for banks
In addition to the amendment of article 29 of the law of the ITP and AJD, which includes a paragraph that clarifies that when it comes to deeds of loans with mortgage guarantee, the lender will be considered a taxpayer, the royal decree alsomodifies article 15 of the Law on Corporation Taxto establish that financial institutions can not deduct this payment in the Corporation Tax.
The publication of these modifications in the BOE are explained by "a situation of extraordinary and urgent need that justifies a normative action of the Government under the protection of article 86.1 of the Spanish Constitution".
Among the reasons indicated, the Government points out that theuncertainty situation generatedIt is necessary to establish in a precise way a legal framework that establishes the rules of a business activity as common as the mortgage loan agreement. Thus, the Executive appeals to its constitutional mandate to "guarantee citizens their rights as consumers, within which it must be understood to have a stable and clear legal framework."