The National Assembly approved in third debate Bill 661 on 27 August 2026, which amends Article 4 of Law 106 of 1974 governing the Real Estate Transfer Tax (ITBI). Presented by Minister of Economy and Finance Felipe Chapman, the legislation establishes a full exemption from ITBI payment for the first sale of new homes to eligible buyers, aiming to stimulate the housing market and improve affordability.
Key Takeaways
- Targeted Tax Relief for Homebuyers: The exemption applies specifically to the first transfer of new residential properties, reducing upfront acquisition costs and encouraging formal registration of property titles, which expands the tax base for future property taxes.
- Fiscal Impact and Market Stimulus: By removing the 2% ITBI burden on qualifying transactions, the measure seeks to reactivate construction sector activity and increase homeownership rates, with the Ministry estimating a modest revenue forgone offset by broader economic multiplier effects.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
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