Spain’s Supreme Court hesitation before Banks

The Supreme Court has ruled that client should face the Stamp Duty Tax (AJD) related to the mortgage.

In the informative notification issued in advance of the Sentence, the Supreme Court establishes that several situations must be distinguished on this tax:

a) Tax related to constitution of the loan, to be paid by the borrower. In this regard, it refers to the constant Case Law of the Third Chamber, the Contentious-Administrative, of the Supreme Court, which has established that the taxpayer is the borrower.

b) Stamp Duty on Notarial documents, to be paid in equal parts between lender and borrower, taxes corresponding to the copies, by whoever requests them.

Associations of financial consumers and specialized lawyers are determined to refer the matter to Europe because they understand that the rights of consumers are undermined in the light of Community Case Law and the principles of effectiveness and equivalence of Community law, by virtue of which an abuse can never benefit the party that causes it.

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