Documented Legal Acts Tax, what is it and how is it calculated?

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After many comings and goings, the full Supreme Court made its final decision . In its resolution I ruled that the banking entity will be responsible for paying the mortgage tax or the Documented Legal Acts Tax . A decision that was not a dish of good taste for some parties and that promotes the protection of clients against financial institutions. Along with this decision, the Government has gotten down to work and has begun to investigate the possibility of creating an Independent Authority for the Protection of Financial Clients in order to prevent future abusive clauses that affect lenders.


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What is the AJD Tax?
As soon as you sign a loan, you must pay a tax on the notarial deed called Romania Mobile Number List Documented Legal Acts or AJD. This tax is regulated by Royal Legislative Decree 1/1993, of September 24 (from Royal Decree-Law 17/2018, of November 8). The AJD  is collected by the Public Administration and is currently received by the Autonomous Communities .

Some experts in this type of claims claim that this tax is one of the highest taxes in the entire process of obtaining a mortgage . This tax can exceed the total of all other mortgage expenses. An astronomical figure that can easily reach 70% of all the expenses of this operation.

The differences in the Legal Acts Tax according to geographical area
The percentage is not fixed for any mortgage that is processed, but rather the percentage varies depending on the Autonomous Community in which the loan has been processed and the amount of the mortgage , ranging between 0.5% and 1.5%. % of the total number of purchase and sale operations. The Autonomous Communities with a higher tax, 1.5%, are Aragon, Andalusia, Castilla y León, Valencian Community, Galicia, Murcia and Catalonia. On the other hand, the Communities with a lower percentage, 0.5%, are Ceuta, Melilla, the Basque Country and Navarra. To this we must add that some of the Autonomous Communities of the Spanish state invite extinctions and reductions of these percentages to facilitate access to housing for both young people and disabled people.



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The differences at European level regarding the Tax on Documented Legal Acts are notable. In these you can see the contrast between the different countries. Spain is the country in the European Union that has a higher Documented Legal Acts tax. Behind it are France, Italy and Portugal, where the client is responsible for paying this tax. On the other hand, in Germany, the United Kingdom and the Netherlands, this type of tax does not even exist.

The Tax on Documented Legal Acts can be complicated to understand. Knowing that it is a cumbersome process, we advise you to contact one of our mortgage advisors to learn more about this type of mortgage tax.