Increase in Property Tax Comes into Effect


On July 23, 2021, Law No. 31313 was published, establishing principles, guidelines, instruments, and regulations governing territorial conditioning, urban planning, and the use and management of urban land.

The second complementary modifying provision of this law incorporated Article 13-A into the Municipal Taxation Law, stipulating that certain properties will be subject to an additional 100% rate on the applicable property tax rate, provided the following conditions are met:

  • The property is included in the Urban Development Plans of the corresponding jurisdiction,
  • It is located on urban land,
  • It has access to public services, and
  • It either lacks urban habilitation with reception of works, or, if it has urban habilitation with reception of works, it lacks buildings.

This additional rate will not apply to properties whose self-assessed value is less than 17 UIT.

The additional rate will be applicable to properties that have not completed the corresponding urban habilitation or building works and will remain in effect until urban habilitation and building on the property are completed, which can only be verified with the reception of urban habilitation works and the conformity of the work.

The aforementioned modification came into effect on January 1 of this year.

You can find the full text of the law at the following LINK.

For more details about the law, contact us: