Summary.
The bill provides for the effects of Law 468 of April 24, 2025 to be suspended until December 31, 2025, so that the law would take effect on January 1, 2026. It restores Law 3 of May 20, 1985 and all its amendments through December 31, 2025. The provision describing the bill’s scope also includes the regulations issued under Law 3 of 1985 among the measures whose force would be restored during that period.
The proposal amends transitional Article 5 of Law 94 of 2019, as amended by Law 399 of September 25, 2023. Preferential mortgage loans granted from promulgation of the proposed law through December 31, 2025 would qualify for the benefits under Law 3 of 1985, subject to the exceptions in Article 5.A of that law. For new homes covered by paragraphs 1 and 2 of Article 5 of Law 3 of 1985, the occupancy permit must have been issued from January 1, 2017 through December 31, 2025, and the property transfer must be effectively registered by December 31, 2025. For multi-unit vertical housing covered by paragraphs 3 and 4, occupancy permits must have been issued from January 1, 2017 through June 30, 2024. These conditions determine which loans would receive the restored preferential treatment.
The bill also amends Article 4 of Law 106 of 1974, previously amended by Law 399 of 2023. Under the proposed provision, the first sale of a new home would be exempt from real estate transfer tax from July 1, 2023 if its occupancy permit was issued from January 1, 2017 through December 31, 2025 and its transfer is effectively registered by December 31, 2025. Persons engaged in selling new homes must attest under oath before a notary public that the homes are new. A certificate excluding the transfer from the tax, issued by the Directorate General of Revenue (Dirección General de Ingresos), would not be required to transfer ownership. The transferor must notify the Ministry of Economy and Finance (Ministerio de Economía y Finanzas) of the exempt transfer using a form issued by the Directorate General of Revenue.
Finally, the bill declares its provisions to concern public order and social interest, gives them retroactive effect from April 24, 2025, and provides that the proposed law would take effect upon promulgation. Its provisions concern the Directorate General of Revenue and the Ministry of Economy and Finance, as well as mortgage lenders, developers and sellers of new homes, purchasers of those homes, and professionals involved in transferring the properties.
What it proposes.
- Temporary suspension of one law and restoration of a preferential mortgage interest regime.
- Transitional eligibility conditions for preferential mortgage loans.
- Transfer tax exemption for the first sale of certain new homes.
Who it would affect.
- Borrowers under preferential mortgage loans.
- Entities granting preferential mortgage loans.
- Sellers and purchasers of the new homes covered by the bill.
- Transferors of properties covered by the proposed exemption.
Key points.
- Suspends the effects of Law 468 of April 24, 2025 until December 31, 2025 and sets its effective date at January 1, 2026.Art. 1
- Restores Law 3 of May 20, 1985 and its amendments through December 31, 2025.Art. 2
- Extends the benefits of Law 3 of 1985 to certain preferential mortgage loans granted through December 31, 2025, subject to the exceptions in its Article 5.A.Art. 3
- Sets occupancy permit periods and, for homes covered by paragraphs 1 and 2, a deadline for registering the transfer.Art. 3
- Exempts the first sale of new homes from transfer tax when the stated occupancy permit and registration dates are met.Art. 4
- Requires a sworn statement before a notary that the home is new and notification of the exempt transfer using a form issued by the Directorate General of Revenue.Art. 4
- Declares the proposal to concern public order and social interest, gives it retroactive effect, and provides for its entry into force upon promulgation.Arts. 6-7