Property Taxes Moratorium 2019

Anatoly Gaviria May 28, 2019

The moratorium period for property taxes ends on June 30, 2019. If you currently owe property taxes, you can take advantage of this moratorium to avoid paying any interests or surcharges. For some property owners, this could potentially save thousands of dollars.

The total debt must be canceled in order the benefits of the moratorium may be applied. The deadline for complying with this payment arrangement will be two years, without interest or surcharges being added.

The property owner must update the property information through the Autoridad Nacional de Tierras (ANATI).

Current Tax Rates:

Tax rates for primary family residences:

  • 0% for homes valued under $120,000.00
  • 0.5% for homes valued between $120,000 and $700,000
  • 0.7% for homes valued over $700,000.00

These new tax rates have been enforced since January 1, 2019. This is because before that date, property owners had present to the Tax Department their affidavits regarding this being their “primary residence” or “family home”, to establish it as the residence that receives these new rates.

However, a property owner with more than one property, will be eligible for these new tax rates only on their primary residence. The following rates apply to weekend or holiday homes, investment, rental, commercial or industrial properties:

  • 0% – less than $30,000 (this stays the same)
  • 0.6% for properties valued between $30,000 to $250,000
  • 0.8% fo properties valued between $250,000 to $500,000
  • 1.0% for properties valued over $500,000.00

Even for properties in the highest bracket, this is a reduction from the highest existing tax rate on properties of 2.1%.

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