What are DOCUMENTED LEGAL ACTS?

The documented legal acts, usually abbreviated as AJD, are regulated in articles 27 to 44, of Royal Legislative Decree 1/1993, of September 24. It is approved in the Consolidated Text of the Law on Property Transfer Taxes and Documented Legal Acts. It is a tax that comes from the Public Administration and is charged by the Autonomous Community as an indirect way of financing the institution.

This tribute will be applied in the notarial documents, commercial documents and administrative documents, that reflect patrimonial transfers burdensome, operations corporate and documented legal acts. it is also known as mortgage tax.

In notarial documents there are two types of liens:

  1. Fixed fee: used for matrices and copies of deeds and notarial deeds. Also for the use of testimonies, which must be done with stamped paper (except simple copies). 
  1. Variable fee. The first copies of deeds and notarial acts, when their object is a valuable quantity or thing, have acts or contracts that can be registered in the Property, Commercial, Industrial Property and Real Estate Registries.

What Is the legal act documented in a home equity loan?

It is the tribute that encumber a home equity loan and that is based on the capital, interest and costs that are guaranteed with the mortgage. Payment of the Documented Legal Acts Tax (AJD) is required once the public deed has been granted. The tax is state, and is currently managed and collected by the relevant Autonomous Community where the mortgage is made, as we remember that taxes of this type are currently a transferred competence.

Legislation

The encumbrance of Documented Legal Acts in the matter of loans with mortgage guarantee, has not ceased to be a controversial issue since the modification of the Law on taxes  ITP (Property transfer tax) and AJD (Documented legal act), both subject to the same legal text. 

The plenary session of the Contentious-Administrative Chamber of the Supreme Court issued contradictory judgments on this matter. In the end, he maintained the interpretation that the tax had to be paid by the Bank's client, that is, the borrower. Finally, Royal Decree-Law 17/2018, of November 8, modifies the Consolidated Text of the Law on Tax on Patrimonial Transmissions and Documented Legal Acts, approved by Legislative Royal Decree 1/1993, of September 24.

With this modification, article 68.2 of the Tax Regulations on Patrimonial Transmissions and Documented Legal Acts, which at that time established that the borrower was the taxpayer who paid the amount of the tax on his account, was subject to reform.

Who is the taxpayer in the tax of documented legal acts?

The new modification of the Law approved by the Government, the passive subject will become the lender, that is, the bank that agreed to the mortgage loan contract. Thus, the borrower ceases to be the borrower, as was the case with the previous regulation. 

How long do I have to pay the tax on documented legal acts?

The taxpayer will have a period of one month to tax this tax in the coffers of the State. If the period allowed for payment is exceeded, the subject will respond with default interest, that is, interest on interest. 

To know more about this information, consultation what you need in our Notary in Barcelona.

If you wish, you can make an online consultation to the notary or request an appointment to have a videoconference with the notary and ask about any questions. This type of online notarial service is ideal when it is not required to prepare documents. Click on the following link: online notary to request information. 

Another online service that we can offer you is the request fast simple copies online. Fill in the form on the page and you can request your simple copy electronically.