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Controversial ruling of the Spanish Supreme Court in relation to who is liable to pay stamp duty

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Last Thursday the Spanish Supreme Court ruled that stamp duty on mortgages, together with the costs involved in obtaining a mortgage, must be paid by the lender and not by the borrower. In Spain, the stamp duty varies from 0.5% to 1.5% depending on the region and on the amount loaned.

The day after the Supreme Court’s decision shares in most Spanish banks plummeted. It is estimated that Spanish banks may be facing a bill for 6,500,000,000 Euros in claims from clients. It was even rumoured that banks would not grant mortgages until there was clarification from the Supreme Court.

Many clients have already started claiming against their lenders. The banks have informed clients that their reimbursement applications should be filed with the Spanish tax authorities and not with them.

The judges of the Spanish Supreme Court will meet on 5th November to decide whether or not this recent ruling remains in place.

October 2018
Álvaro Aznar Azcárate
Solicitor and Spanish Abogado

Controversial ruling of the Spanish Supreme Court in relation to who is liable to pay stamp duty