Supreme Court corrects its stance and establishes that the bank and not the borrower must pay the tax on mortgages

FACUA-Consumers in Action welcomes the Supreme Court’s change in criteria in relation to who should pay the tax on document duties (mortgages). Having until now maintained that this should be the consumer’s responsibility, the high court has now corrected its stance and ruled that it must be the loaning body, the banks, who take on the responsibility for paying said tax.

In a ruling on 16 October with Jesús Cudero the presiding judge, the Third Hall of the Supreme Court (Second Section) modified precedent case law, interpreting the consolidated text of the law on tax regulation for property transfers and document duties and concluding that it is not the borrower who is subject to this tax on the notarial deeds of loans with a mortgage guarantee (as previ