The mortgage cancellation deed is a notarial document that is granted when the debt, normally a mortgage loan, has been paid in full. This deed is signed exclusively by the representatives of the creditor entity (bank or savings bank) and it is not necessary for the debtor to appear.

A bank certification of payment is not sufficient to cancel the mortgage in the Land Registry. In order for the payment to be officially reflected, it is necessary to grant a public deed of cancellation, in which the creditor confirms that the loan has been fully repaid and requests the cancellation of the mortgage.

Documents for Cancellations

Registry data of the property/s encumbered with mortgage by means of a simple note from the Registry or a copy of the loan deed.

Cancellation Taxes

Mortgage cancellations are exempt from Transfer Tax and Stamp Duty (ITPAJD), so they do not pay this tax. However, the Value Added Tax (VAT) corresponding to the cancellation deed and its subsequent registration (i.e., the notary and registry bill) must be paid. This exemption was modified due to the requirements of EU legislation, according to paragraph seven of article one of Law 28/2014, of 27 November, which amended VAT Law 37/1992.