1997 Law Decree No. 9 and 2002 Law No.4 establish eight different incentives for investments at Casco Antiguo

 

During financing:

1

-Fiscal credits, applicable to income tax payments, are given to banks and financial institutions that award “preferential mortgage loans for reconstruction”.

The aforementioned loans should be destined exclusively to:

a- The purchase of a building.

b- When financing the full or partial reconstruction or restoration of a building.

c- The construction of a building on a lot.

The law establishes the requirements, mechanisms and related formulas to calculate and obtain the fiscal credit.

To the owner, promoter or investor:

 

2

The TOTAL INVESTMENT in the construction, rehabilitation, restoration, expansion, maintenance, lighting, or improvement of parks, walls, green areas, church, or any other site of public use is deductible from income tax.

 

3

The TOTAL EARNINGS (for a period of ten years from the occupancy permit issuance) received from rentals, sales, partial or full transfer of the property that has been constructed, reconstructed or restored, is exempt from income tax. 

 

4

All constructed, reconstructed or restored buildings are exempt from homeowner’s tax for a period of thirty years.

 

5

* The owner of a building that has been constructed, reconstructed or restored (beginning ten years after the issuance of the law) will be exempt from income tax on the earnings resulting from commercial, professional or industrial activities that the same owner performs in the building, for a period of five years, as long as these activities take place in Casco Viejo.

* This incentive is valid until 2007.

 

6

Tax exemption for the import of equipment and materials used in the construction, reconstruction or restoration of buildings, as long as these are not produced locally in sufficient amount and quality.

To the Landlord:

 

7

During a period of five years, from the occupancy permit issuance, the landlord of a constructed, reconstructed or restored property may deduce the rent from income tax.

For parking lots:

 

8

ALL EARNINGS (for a period of ten years from the occupancy permit issuance) are deductible from income tax.

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