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An overview by Garrigues, Taxand Spain
The Spanish Directorate General of Taxes (DGT) has reaffirmed that buyer mortgage subrogation in real estate transactions does not trigger Stamp Duty Tax (AJD). This confirms the DGT’s long-standing position, despite uncertainties following the 2020 Supreme Court ruling on condominium extinctions with co-debtor release, which had suggested a new taxable event.
The DGT clarified that substituting a debtor does not alter the loan’s essential terms or mortgage guarantee, so no additional registration or AJD tax applies. Guillermo Avilés Suárez and Gonzalo Rincón from our Spanish member firm Garrigues have highlighted this development, noting that it provides legal certainty and avoids extra costs, although each transaction should still be reviewed to ensure no changes to loan conditions create a taxable event.
You can read the full overview here.
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