The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Regulation: Court ruling offers Spanish banks brief respite

The recent decision to keep a mortgage-tax burden on clients rather than banks hasn’t improved the longer-term regulatory environment for Spanish lenders – or their own image.

Pablo-Iglesias-Podemos-R-780

Pablo Iglesias, secretary-general of Podemos



Spain’s Supreme Court ruling on Tuesday that customers, not banks, should continue to pay taxes for taking out a mortgage is only a short-term respite in the general assault on Spanish banks and their image.

Protesters outside the court called for the banks to pay, with Pablo Iglesias – leader of the powerful left-wing party Podemos – criticizing the decision, saying on Twitter: “The banks have won and citizens have lost.”

A previous ruling by the court determining that the banks should cover the tax – paid by the borrower on mortgage loans and ranges from 0.5% to 1.5%, depending on the region – took the market by surprise on October 18.

Customers have had to pay the tax – similar to stamp duty in the UK, and known locally as AJD: Actos Juridicos Documentados – for more than a quarter of a century.

Burden

Pronouncements at a news conference on Tuesday by centre-left prime minister Pedro Sánchez, who enjoys only the thinnest of majorities, seem to confirm bankers’ fears that the government will try to change the law anyway, to shift the burden onto banks.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree