What are the taxes on Lombard loans?
In the world of finance, Lombard loans are a useful tool for obtaining liquidity by using financial securities or similar assets as collateral. However, one of the most common questions about this type of loan is: what taxes are associated with a Lombard loan? Here we explain it to you in a clear and simple way.
Tax treatment of Lombard loans in Spain
According to Spanish tax regulations, loans, including Lombard loans, have a specific treatment in relation to Transfer Tax and Stamp Duty (ITP and AJD). This is what you need to know:
- ITP exemption:
The constitution of a loan is exempt from Transfer Tax ( ITP), according to article 45.I.B.15 of the Royal Legislative Decree 1/1993. This means that you will not have to pay this tax for formalizing the loan, whether in a private or public document. - Documented Legal Acts (AJD):
If the loan is formalized through a notarial public deed and meets the requirements of being registrable in an official registry (such as the Land Registry or the Commercial Registry), it could be subject to AJD tax. However, in the case of Lombard loans, this does not usually apply, as most of them are not inscribed in this type of registry. - Interest generated:
Although the constitution of the loan is tax exempt for the borrower, it is important to take into account the interest on the loan. If you are the lender (the person or entity that grants the loan), the interest you receive must be taxed as income from movable capital in the IRPF ( if you are an individual) or in the Corporate Income Tax (if you are a company).
What does this mean to you?
If you are considering contracting a Lombard loan, you will not have to pay taxes for the formalization of the loan, since they are exempt from ITP and, in most cases, they will not be subject to AJD either. However, if you act as a lender, remember that the interest you receive will be subject to taxation.
Lombard loans are a tax-efficient option for obtaining financing in Spain, as in most cases they do not generate additional tax costs in their constitution. However, if you have specific doubts about your situation, it is always advisable to consult a specialized tax advisor to ensure that you comply with all legal obligations.
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