Property tax withholding begins  in January 2019

Lending institutions will collect the tax

Beginning in January, Decree 362, (withholding of property tax)   will be charged by banks or financial entities where the clients have mortgages.

Any person who has a mortgage on a property, other than family property or personal housing, the real estate tax will be charged by the entity that lent the money and not the Directorate General of Revenues (DGI).

“That mortgage does not correspond to a family heritage residence, that is, the first home one has. Everything else has to pay the tax and the institutions have to withhold it, “says economist, Adolfo Quintero.

The properties that are financed through banks, entities, cooperatives or institutions that grant financing to purchase homes or real estate will charge the tax.