Minister of Economy and Finance Felipe Chapman presented a bill to the National Assembly plenary on 13 August 2026 proposing amendments to Article 4 of Law 106 of 1974, which governs the Real Estate Transfer Tax (ITBI). The proposal establishes a new progressive rate structure for the first sale of new homes, replacing the flat 2% rate with brackets based on property value to improve housing affordability.
Key Takeaways
- Progressive Rate Structure for Housing Access: The bill introduces tiered ITBI rates (e.g., 0% for homes under B/.120,000; 1% for B/.120,001–180,000; 1.5% for B/.180,001–250,000), directly reducing closing costs for low- and middle-income buyers.
- Revenue Neutrality via High-End Adjustment: Properties above B/.250,000 would face a slightly higher marginal rate, ensuring fiscal neutrality while concentrating relief on the affordable housing segment most sensitive to transaction costs.
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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