by Jesus Barrena 
The Documented Legal Acts (AJD) are known as a tax that comes from the Public Administration and is collected by the Autonomous Community as an indirect way to finance the institution.
It's a tax to be used for notarial, commercial and administrative documents, which show transfers of assets with high values, company operations and documented legal acts.
This tax is also known as mortgage tax and is regulated by Royal Legislative Decree 1/1993, issued on September 24 and approved by the Tax Law on Property Transfers and Documented Legal Acts.
Contents
What are the types of encumbrances that apply to notarial documents?
Currently there are two types of encumbrances that are applied to notarial documents, which are:
- Fixed fee: applies to the matrices and copies made of the deeds and notarial acts, as well as for the use of testimonies, which must have stamped paper, unless they are simple copies.
- Variable fee: Copies of deeds and initial notarial acts, provided that they have the nature of a valuable amount or thing, have acts or contracts that can be registered in the Property, Mercantile, Industrial Property and Real Estate Registries.
Who must pay the tax on documented legal acts?
This point has conflicting ideas about which person should cancel the Tax on Documented Legal Acts and it was in October 2018, with the ITPAJD Regulations indicating who will be the taxpayer of the payment of this tax.
According to this regulation, it must be the client who is going to accept the mortgage loan, but in the month of November of that same year, after certain opinions issued by the Supreme Court that changed the mortgage law, the lender was indicated as the person to cancel.
In other words, it will be the bank or financial entity that must be recognized as a taxpayer and cancel said expense, ceasing to be canceled by the borrower, as dictated by the previous regulation.
How much time is available to pay the tax on documented legal acts?
According to the legislation, the taxpayer has a period of one month to pay this tax to the State, so, if said cancellation is not resolved within the period granted, default interest will be added, in other words, interest will be added to the interests.
What is considered a documented legal act in a home equity loan?
These Documented Legal Acts are considered as the tribute that is imposed on a home equity loan and that it has a base, capital, interest and expenses that are certified with the mortgage.
Being requested the payment of the Tax on Documented Legal Acts at the time of conferring the public deed, so it is essential to mention that this tax is of a state nature.
It is currently processed and collected by the Autonomous community of the area where the mortgage is executed, since this type of tax is considered as a transferred competence.
