Introduction

On August 31, 2026, Law 546 of 2026 was enacted and published in the Official Gazette. It amends Article 4 of Law 106 of 1974, with the aim of stimulating the construction industry and facilitating access to housing for young families through an exemption from the Real Estate Transfer Tax (ITBI) applicable to the first sale of newly built homes.

I. Exemption of the First B/.120,000 of the Taxable Base

The first change introduced by Law 546 is an exemption equivalent to the first B/.120,000.00 of the taxable base for the first sale of newly built homes.

To benefit from this exemption, the sale must be formalized within two years following the issuance of the occupancy permit by the competent authority.

II. Preferential Scale for Homes Valued Between B/.120,000 and B/.200,000

The law also establishes a special progressive scale for homes whose taxable base exceeds B/.120,000 but does not exceed B/.200,000.

In these cases, the tax is calculated only on the amount exceeding B/.120,000, applying the following preferential rates:

Range	Rate
From B/.120,000 to B/.130,000	0.50%
From B/.130,000 to B/.150,000	1.00%
From B/.150,000 to B/.170,000	1.40%
From B/.170,000 to B/.190,000	1.60%
From B/.190,000 to B/.200,000	1.80%

The law expressly clarifies that moving into a higher bracket does not cause the loss of the exemption on the first B/.120,000, which remains in effect at all times.

III. Treatment of Homes Valued Above B/.200,000

When the taxable base for the first sale of a new home exceeds B/.200,000, the B/.120,000 exemption still applies.

However, the excess is subject to the general ITBI regime set out in Article 1 of Law 106 of 1974, without access to the preferential scale introduced by Law 546.

In this way, the reform maintains a uniform incentive for all newly built homes.

IV. New Documentary Requirements and Sworn Statement

The law simplifies the procedure for accessing the Real Estate Transfer Tax exemption.

Accordingly, the seller must state in the public deed, under oath, that:

1. The property is a newly built home.

2. The transfer corresponds to the first sale of said home.

3. The transaction is being formalized within the legal deadline.

4. The date and details of the corresponding occupancy permit are identified.

Additionally, the law eliminates the need to obtain a prior exclusion certificate issued by the Tax Authority (DGI), which reduces administrative burdens and speeds up the closing of real estate transactions.

V. Transitional Regime

This provision seeks to extend the benefit to projects that are already built or in inventory, favoring the absorption of units available on the market.

It also incorporates a transitional provision of particular relevance for real estate promoters and developers.

VI. Conclusion

Law 546 of 2026 is a tax reform aimed at revitalizing the residential real estate sector by reducing the tax cost associated with the first sale of newly built homes.

The introduction of a B/.120,000 exemption on the taxable base, the creation of a preferential scale for homes valued up to B/.200,000, and the simplification of administrative requirements may have a positive impact on both buyers and real estate developers.