New homes get transfer-tax relief again: first B/.120,000 exempt on qualifying sales

On 31 August 2026, President Mulino signed Law 546, amending Article 4 of Law 106 of 1974 to restore ITBI relief on the first sale of qualifying new homes.

Under the reported structure, the first B/.120,000 is exempt when the deed is executed within two years of the occupancy permit. From B/.120,001–200,000, tax applies to the excess under the law’s table. Above B/.200,000, the base exemption remains and 2% applies to the excess. The seller is the taxpayer. This is not the AbonoPaTi subsidy.

What it means for daily life: Buying a qualifying new home may face less transfer-tax friction — but timing of the occupancy permit and deed formalization matter. Do not assume the same relief for resales or non-qualifying deals.

Sources

• MEF — Law 546 ITBI sanction

Confirm tax-table details against the Gaceta and MEF before making absolute rate claims; this is not tax advice.