Property Law

2020 PROPERTY TAX

Due: March 31stof each year. Property owners must pay Property Tax (Impuestos Bienes Inmuebles) and garbage collection fee (recolección basura) to the Municipal Government where the property is located.

CAPITAL GAINS IN REAL ESTATE

The Law #9635 creates a Capital Gains Tax of 15% which will apply to all investment income and real estate. For real estate transactions the law provides a one-time exemption for property owners that owned property before the law came into effect on July 1st 2019.

LUXURY HOME TAX

The so called ´Solidarity Tax´ for the Strengthening of Housing Programmes (Impuesto Solidario para el Fortalecimiento de Programas de Vivienda), Law # 8683, commonly referred to as the 'Luxury Home Tax'applies to houses, condos and apartments of which construction/building value exceeds a certain amount.

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