Spanish Reform on Stamp Duty May Lead To Heavier Costs for Borrowers


Posted and filed under Legal Issues in Spain.

Spanish Reform on Stamp Duty May Lead To Heavier Costs for Borrowers

Over the past few months, there has been a great deal of activity in the Courts with regard to stamp duty tax on properties with some hope that clients may be able to claim back  Stamp Duty paid when they obtained their mortgage retrospectively from Banks.

After an unprecedented and ridiculous about turn by the Supreme Court of Judgement of Spain a new law was passed, which decreed that on all new loans after 10th November 2018, the Banks would have to pay the Stamp Duty.

Good news for new borrowers, yes. Not so for the Banks, although better than before the previous decision was overturned due to their lobbying (which said they would have to pay it retrospectively also)

However, we believe that this new reform will lead to possibly banks increasing their commissions or maybe charging upfront fees as they will not want to be footing the bill for this tax long term.

By the way, stamp duty tax on a mortgage is due when a mortgage deed is registered in a public deed at a Notary. The current stamp duty figure in the Valencia region and in the Murcia Region is currently at the time of writing, 1.5% on a mortgage and for division of joint tenancy.

If you are purchasing a property and need any assistance with a property purchase in Spain, with or without a mortgage, please contact us on


Leave a Reply

Your email address will not be published. Required fields are marked *




FREE - Our complete guide to Brexit

Free Brexit guide

Looking for a solution?

Feel free to get in touch with any enquiries and one of our friendly members of staff will get back to you as soon as possible.

Form loading.