Tax and notarial advantages

Other benefits of the Code of Good Practice measures are tax and notarial advantages.

The Code measures are accompanied by the following exemptions and rebates on taxes and duties that may be applicable:

  • In the case of debt restructurings that are notarised, which entails a novation of the mortgage loan, there is an exemption from the gradual fee for notarial documents in the form of documented legal acts of Transfer Tax and Stamp Duty.
  • In the case of dation in payment of the main residence of the mortgage debtor or guarantor, the following are exempt:
    1. The transfer for the cancellation of the debt, with regard to the Tax on the Increase in Value of Urban Land.
    2. Capital gains that may arise from the cancellation of debts secured by a mortgage on the home, with regard to Personal Income Tax.
  • In the case of dation in payment, the notary and registry fees derived from the cancellation of the mortgage will be reduced by 50%. The debtor will not bear any additional costs from the financial institution, which acquires, free of mortgage charges, the ownership of the previously mortgaged property.
  • The notarial and registry customs duties for the formalization and registration of the novations for the debt restructuring will be satisfied by the creditor entity and will be discounted by 75%.
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