New Taxes and Exemptions Affecting Corporate and Real Estate Transactions

Law No. 64 dated 20 October 2017 (“Law No.64”) and Law No. 66 dated 03 November 2017 (“Law No. 66”) amended and introduced new taxes and exemptions affecting corporate and real estate transactions. Below are the most significant changes and introductions provided for under said laws.


  • Corporate Income Tax: Article 15 of Law No. 64 amended article 32 of Decree Law No. 144 of 12/06/1959 whereby the Corporate Income Tax rate became Seventeen Percent (17%) instead of Fifteen Percent (15%). Said tax is applicable to joint-stock companies, limited liabilities companies and limited partnerships by shares.
  • Fiscal Stamp Duty: Article 2 and Article 3 of Law No. 64 amended certain provisions of Decree Law No. 67 of 05/08/1967 whereby the Fiscal Stamp Duty rate became Four Per-Mille (4‰) and the other fixed stamp duties on corporate and/or other official documents were increased.
  • Exemption on companies’ change of legal type: Article 41 of Law No. 66 exempts all companies incurring a change in their legal type from all registration fees (transfer and assignment) before all official authorities, notary public and fiscal stamp duty fees. Said exemption is applicable provided that the transfer of assets is conducted pursuant to their nominal value and the shareholding structure remains the same.

            REAL ESTATE

  • Municipal Exemptions: Article 46 of Law No. 66 decreased the penalties incurred on late municipal fees by Ninety Percent (90%) provided that all amounts be settled prior to February 2018.
  •  Estate Exemptions: Article 53 of Law No. 66 exempted all Estate dating prior to 13 October 1994 from all transfer fees.
  • Tax on Real Estate Contracts: Article 14 of Law No. 64 introduced a new tax consisting of a down payment amounting to Two Percent (2%) on any and all real estate sale agreements calculated based on the amount of said agreement. Said tax shall be paid within a period of Fifteen (15) days as of the date of execution of the relevant agreement, provided that the remainder of the amount be settled upon registration of the agreement before the competent real estate authorities.