Mortgage Tax and Costs
A lot has been said over the last three weeks regarding the costs and taxes associated with a mortgage in Spain. The following is from the Money Saver Spain website and is worth a read. Spain's Supreme Court decided this week, in a reversal of their initial decision, that it should be the client and not the bank that pays the tax when taking out a mortgage. Consumer organisations, amongst others, are outraged. It was hoped that the Supreme Court would maintain their original decision but without backdating it, thereby removing the possibility of an avalanche of claims. The Government has announced that they will rush through a change in the law for all new mortgage clients making banks responsible for the tax payment. But banks are expected to make mortgage conditions less favourable for new clients. Now it remains to be seen what will happen when the case is taken to the European Court of Justice. When this happened with the mortgage "floor clauses", ...