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On November 2018, there was a huge debate in Spain over who should pay the mortgage creation tax. Should the buyers (consumers) or the sellers of the mortgage (the banks) pay the tax.
During early 2018, the civil division of Supreme Court clearly ruled that the tax on mortgages should be paid by consumers and not banks. However, on the 18th of October the administrative division pronounced the other way, that banks should pay.
What should the recommendation be to Spanish people? Explain the thoughts about their debate? Does the incidence of the tax depends on who pays the tax?
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