A. M. 
The Ministry of Finance has submitted a proposed decree before the Legislative Assembly that seeks to promote investments in high-rise real estate development. The initiative intends to grant tax incentives to projects that include buildings of at least 35 stories, exempting from Income Tax the profits generated by these constructions for a period of 15 years.
The proposal, called “Special Provisions for the Promotion and Granting of Tax Incentives for the Promotion of the Development of High-Rise Real Estate Projects”, would apply both to individuals and legal entities that decide to undertake new projects under these criteria. The owners of the buildings will be able to benefit from the incentive even if they convert their properties, for example, by transforming offices into hotels.
In order to access these tax benefits, investors must notify the General Directorate of Internal Taxes of the details of the projects before starting construction. It is important to note that the benefits will not apply to those who acquire or lease real estate in the developed buildings, but exclusively to the original owners.
The Ministry of Finance has established that the different directorates of the portfolio will be empowered to issue resolutions to clarify doubts about the application of the law, thus ensuring an effective and unambiguous implementation.
This decree seeks to promote the development of spaces for housing, economic activities, tourism and services, contributing to the economic growth of the country. If the proposal is approved, the decree would become effective eight days after its publication in the Official Gazette.
