FACUA receives avalanche of queries on mortgage tax after Supreme Court ruling

Claims must be made to the autonomous tax offices if the tax was paid no more than four years ago and to the banks if paid before. The association will continue fighting in the courts if the financial entities do not reimburse the money.

FACUA receives avalanche of queries on mortgage tax after Supreme Court ruling

FACUA-Consumers in Action is receiving an avalanche of queries about the document duties tax for mortgage loans after the ruling given by the Supreme Court in which it changed its criteria and established that it is the banks and not the borrowers who must pay.

Along with the multitude of queries which are being posed to FACUA on social media, numerous consumers around Spain are turning to the regional offices of the organisation and making phone calls to 688 954 954 in order to find out how to claim the rebate of the tax on their mortgages. In this respect, FACUA reminds consumers that the claim must be made to their regional autonomous tax office if the tax was paid no more than four years ago and to the bank if paid before.

Today, almost 25,000 mortgage borrowers have joined FACUA to seek advice and defend their rights against different scams committed by banks in relation to their mortgages. This concerns mainly the fraudulent base lending rate clause and imposing on borrowers the costs of formalising their mortgages which correspond to the financial entities, such as valuation, administration and the tax on document duties. To receive advice to this effect, consumers can register online: FACUA.org/hipotecastrampa (in Spanish).

Supreme Court ruling

In a ruling on 16 October, presided by judge Jesús Cudero, the Third Chamber of the Supreme Court (Second Section) modified previous case law and, interpreting the consolidated text of the tax law on property transfers and document duties and their regulation, concluded that it is not the borrower who is not subject to the tax on notarial deeds of a loan with mortgage guarantee (as previous case law maintained) but the entity which loans the sum in question.

FACUA requests the autonomous tax authorities to establish protocols of automatic rebate of the amounts paid for these taxes to those who have paid them in the last four years. At the same time, the association urges banks to act responsibly and proceed to reimburse mortgage borrowers who paid these taxes before 2014. If this does not happen, the organisation will continue fighting in the courts so that people can reclaim these undue taxes.

The organisation has hundreds of open legal proceedings on this matter representing its members. It is demanding the reimbursement of the amounts charged fraudulently by the interest clause as well as the costs related to paying the banks and not the users for the formalisation of mortgages.

The Supreme Court, in its change of criteria, takes into consideration that the business which must remain publicly registered is the mortgage and the only stakeholder in that this public register remains is the moneylender, as it is only through this registration that the mortgage can be effected.

The ruling annuls one of the articles of the regulation of this tax (which established that the borrower is the taxable subject) for being against the law. Specifically, this concerns Article 68.2 of said regulation, approved by Royal Decree 828/1995 of 25 May.