admin23President José Raúl Mulino signed Law 546 of 2026, which exempts the payment of the 2% Real Estate Transfer Tax (ITBI) on the purchase of a first new home. The law amends Article 4 of Law 106 of 1974 and was approved by the National Assembly on August 26 with 53 votes in favor, after the Cabinet Council approved the bill on July 28.
What the exemption covers
The benefit applies to the purchase of a first new home valued up to $120,000, which is fully exempt from the 2% ITBI. For higher-value homes, the law provides staggered tax relief up to a cap of $200,000, above which ordinary tax treatment applies.
| Home value | ITBI treatment |
|---|---|
| Up to $120,000 | Full exemption from the 2% rate |
| Above $120,000 and up to $200,000 | Staggered tax relief |
| Above $200,000 | Ordinary tax treatment |
Timing requirement
To qualify, the purchase transaction must be formalized within two years of the date the occupancy permit for the home was issued by the competent authority. This requirement is meant to limit the benefit to genuinely new, recently built homes, preventing it from applying to used or long-standing inventory on the market.
Purpose of the measure
According to the Executive Branch, the law aims to facilitate homeownership access for young families, stimulate the construction sector, and contribute to job creation. The bill was originally driven by the Executive Branch and backed by the Ministry of Housing and Land Management throughout its legislative process.
What buyers and developers should review
Those evaluating the purchase of their first new home should verify that the property has a recent occupancy permit and that the transaction can be formalized within the two-year window required by law. For developers and construction companies, the measure may represent a relevant selling point to first-time buyers. At EDTIJ we can advise both buyers and developers on the practical application of this exemption to specific transactions.