Controversial ruling of the spanish supreme court in relation to who is liable to pay stamp duty
This information has been prepared by Sykes Anderson Perry Limited as a general guide only and does not constitute advice on any specific matter. We strongly recommend that you seek professional advice before taking action. No liability can be accepted by us for any action taken or not taken as a result of any information or advice given or omitted
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.
Álvaro Aznar Azcárate
Solicitor and Spanish Abogado