Guide · Purchase taxes by region

Stamp duty (AJD) on a Spanish mortgage: the lender pays

Since November 2018 the lender, not the borrower, is the taxpayer of AJD on a mortgage deed in Spain. What the borrower still pays and regional rates.

Checked on against the official sources at the bottom of the page.

In short

If you take a mortgage to buy a home in Spain, the stamp duty on the mortgage deed (Actos Jurídicos Documentados, AJD) is owed by the lender, not by you. That has been the national rule since 10 November 2018, when Real Decreto-ley 17/2018 amended article 29 of the transfer-tax text. You are still the taxpayer on the deed of purchase, and you still pay the valuation and any copies you ask for. The AJD rate itself is regional, so the amount differs even though the rule on who pays is national.

What the law says

Article 29 of the consolidated text (texto refundido, TRLITPAJD, Real Decreto Legislativo 1/1993) makes the buyer (“the acquirer of the asset or right”) the taxpayer of AJD on notarial documents in general. It then adds: “In the case of deeds of loan with a mortgage guarantee, the lender will be considered the taxpayer.” The consolidated text shows that this version was published on 9 November 2018 and in force from 10 November 2018, and applies to taxable events arising from that date.

Two deeds are therefore involved in a typical purchase with a mortgage:

DeedAJD taxpayer
Purchase deed (escritura de compraventa)Buyer; see VAT and stamp duty on new homes
Mortgage deed (escritura de préstamo hipotecario)Lender

On a resale home the purchase is charged ITP rather than AJD; see the ITP guide.

What you still pay on the mortgage

Ley 5/2019, the mortgage credit law, covers the costs of arranging the loan in article 14.1.e. Before signing, the lender must give you “clear and truthful information” on which costs fall on it and which on you. The law then distributes them:

  • Valuation (tasación) of the property: the borrower.
  • Administrative agent (gestoría) costs: the lender.
  • Notary fees for the mortgage deed: the lender; but “the copies are borne by whoever requests them”.
  • Registration of the mortgage guarantee in the land registry: the lender.
  • The tax: “the payment of the transfer tax and stamp duty will be made in accordance with the applicable tax rules”, which is why article 29 decides the question.

In practice, then, what you pay is the valuation, plus the cost of any copies of the mortgage deed that you request. You should also expect the lender to ask for insurance; the law requires the lender to give you the insurance conditions it demands in writing (article 14.1.f). To model the loan itself, use the mortgage calculator.

How the mortgage AJD is calculated

The base for a loan with a guarantee is, under article 30.1, “the amount of the obligation or capital guaranteed, including the sums secured for interest, compensation, penalties for breach and other similar items”. If the deed does not state the guaranteed amount, the base is the capital plus three years of interest. The base can therefore be larger than the loan amount alone.

Regional rates on mortgage deeds

The rate is set by each region under article 31.2, with the State fallback of 0.5%. This guide gives a rate only where it was read in the regional text.

RegionRate read for deeds of mortgage loans
Asturias1.5% (art. 34 bis)
Catalonia2% where the lender is the taxpayer (art. 642-1.b)

Calculation, not a quote: on a guaranteed amount of €200,000, 1.5% is €3,000 in Asturias and 2% is €4,000 in Catalonia, in each case owed by the lender. The Community of Madrid also bonifies the AJD at 100% for certain modifications and subrogations of mortgage loans (article 38); the conditions are in the regional text. The general AJD rates on a purchase deed, which are different, are in the guide on new homes.

What changes when a mortgage is transferred

If your mortgage is later taken over by another lender under the subrogation law, article 14.1.e of Ley 5/2019 requires the new lender to reimburse the former one for the proportional part of the tax and costs it bore, using the outstanding balance plus interest and similar items as the base for the AJD. That is a payment between lenders, not a cost for you.

What it costs

For the borrower, the AJD on the mortgage deed is nil, because the lender is the taxpayer. The valuation fee and copies are the borrower’s costs; this guide found no official scale for valuations, so ask the valuer or lender for the figure in writing. The mortgage calculator does not add AJD to the borrower’s costs.

Which professional to consult

A lawyer registered with a Spanish bar association (colegio de abogados), see property lawyer, can check the pre-contract information the lender must give you on costs. A valuer, see property valuer, prepares the valuation the lender requires.

Frequently asked questions

Do I pay AJD when I sign my mortgage?

Not on the mortgage deed. Article 29 makes the lender the taxpayer.

Is the rule the same in every region?

Who pays is national. The AJD rate is regional.

Do I pay AJD on the purchase deed?

On a new home, yes: the buyer is the taxpayer. On a resale the purchase pays ITP.

Who pays the valuation?

The borrower, under article 14.1.e.i of Ley 5/2019.

Was this always the rule?

No. It applies to taxable events from 10 November 2018.

More guides on purchase taxes by region

Sources

All guides · Payotte Spain