Supreme Court Decides Who Will Pay Mortgage Tax in Spain
Finally, Spain's Supreme Court has ruled that customers will have to pay a mortgage tax when they buy a property. After 15 hours of debate over who should pay the tax, known as AJD, Supreme Court judges voted that the customer should pay, not the bank.
The tax is a substantial fee (up to 1.5% of the property value) paid to a notary and allows banks to initiate foreclosure proceedings if a client fails to make mortgage payments.
This type of tax is paid in the main European countries when taking out a loan to purchase a home abroad . The amount depends on the amount of the mortgage and the autonomous community, but is between 0.5% and 1.5% of the sale. For example, for a mortgage of 200,000 euros in Madrid, the amount is 2,250 €.
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