10 Nov Spain – The decree that obliges the bank to pay mortgage taxes enters into force

Spain. The Official Gazette of the State (BOE) published yesterday the Royal Decree Law approved on Thursday by the Council of Ministers to amend the laws regulating the tax on documented legal acts and corporate tax.
The text, which prevents banks from deducting the lien on corporate tax mortgages, comes into effect today but must be validated in Congress.
The Government promoted the legal change following the decision of the plenary of the contentious-administrative Chamber of the Supreme Court to rectify the three sentences that it dictated in October according to which the banks should be, and not the clients, those who pay the tax.
After two days of debate, the plenary decided last Tuesday to return to the previous doctrine, which made the levy relapse in the clients.

The Royal Decree law modifies article 29 of the consolidated text of the tax law on patrimonial transmissions and documented legal acts to establish that, when writing mortgage-secured loans, the taxable person of the tribute will be the Lender, I mean, the bank.
In addition, it changes article 45 to exempt banks from paying the tax when they grant mortgages to certain institutions such as the State, public administrations or cultural, scientific or charitable entities.
This exemption, which was already applied when the tax was paid by the customers, extends to political parties with parliamentary representation and to churches and religious communities that have signed cooperation agreements with the State.

To see the full text look at the following link

https://www.boe.es/boe/dias/2018/11/09/pdfs/BOE-A-2018-15344.pdf

Real Decreto-ley 17/2018, de 8 de noviembre, por el que se modifica el Texto refundido de la Ley del Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados, aprobado por el Real Decreto Legislativo 1/1993, de 24 de septiembre.