Housing Finance Policy

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    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)Civil lawCivil lawCivil law
    CIA World Factbook
    		A.1.1
    Are there specific laws that deal with mortgages? YesYesYes
    Ley N. 861 Articulo 80
    		A.1.2
    Registration/Transfer of titles:A.1.3
    Does the law clearly define different types of property rights?YesYesYes
     
    		A.1.3.1
     Are property rights easily transferable?YesYesYes
     
    		A.1.3.2
    Typical number of days needed for the transfer of title464646
    WDI
    		A.1.3.4
    Can liens be effectively enforced?YesYesYes
     
    		A.1.4
    Is there specialized legislation covering:A.1.9
    Issuance of RMBSYesYesYes
    Ley N 1036
    		A.1.9.2
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Are there subsidized funding sources for mortgage lenders?YesYesYesB.1.1
    Government supported liquidity facilityYesYesYesB.1.1.2
    B.2 Subsidies to Households
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Are there subsidies to households on housing finance?YesYesYes
    SENAVITAT (CONAVI)
    		B.2.1
    Down-payment subsidies YesYesYes
    SENAVITAT (CONAVI)
    		B.2.1.3
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners) YesYesYesC.1.1
    Property transaction taxes (purchase/selling)YesYesYesC.1.2
    Tax on capital gains on property YesYesYesC.1.5
    Are there tax benefits on rental properties?10% effective tax rate to gross rent.10% effective tax rate to gross rent.10% effective tax rate to gross rent.C.2
    back to top | Country Data:
    Notes: 2010=100
    Notes: 2010=100
    Notes: Banks include BNF, Vision Banco.
    Notes: Banks include BNF, Vision Banco.
    Notes: Banks include BNF, Vision Banco.
    Notes: Banks include BNF, Vision Banco.
    Notes: Banks include BNF, Vision Banco.
    Notes: Calculated as % of households, not housing units, without electricity.
    Notes: Calculated as % of households, not housing units, without electricity.
    Notes: Calculated as % of households, not housing units, without electricity.
    Notes: Calculated as % of households, not housing units, without electricity.
    Notes: Capital gains tax on non-residents of 30%. Tax base of property typically around 50% of property value.
    Notes: Capital gains tax on non-residents of 30%. Tax base of property typically around 50% of property value.
    Notes: Capital gains tax on non-residents of 30%. Tax base of property typically around 50% of property value.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Financieras - small-scale financial institutions.
    Notes: Impuesto al Valor Agregado. 1.5% of Sales Price.
    Notes: Impuesto al Valor Agregado. 1.5% of Sales Price.
    Notes: Impuesto al Valor Agregado. 1.5% of Sales Price.
    Notes: Impuesto al Valor Agregado. 1.5% of Sales Price.
    Notes: Impuesto al Valor Agregado. 1.5% of Sales Price.
    Notes: Impuesto al Valor Agregado. 1.5% of Sales Price.
    Notes: IRP. 8% to 10% applied to the lesser of 30% of the sales price and the difference between the sales and purchase prices.
    Notes: IRP. 8% to 10% applied to the lesser of 30% of the sales price and the difference between the sales and purchase prices.
    Notes: IRP. 8% to 10% applied to the lesser of 30% of the sales price and the difference between the sales and purchase prices.
    Notes: National Percentage
    Notes: Private credit bureau - Informconf and public credit bureau - CRC.
    Notes: Private credit bureau - Informconf and public credit bureau - CRC.
    Notes: Private credit bureau - Informconf and public credit bureau - CRC.
    Notes: Private credit bureau - Informconf and public credit bureau - CRC.
    Notes: Private credit bureau - Informconf and public credit bureau - CRC.
    Notes: Public financing by Financial Agency for Development (AFD) indirectly through financial institutions, and directly to debtors by Banco Nacional de Fomento
    Notes: Public financing by Financial Agency for Development (AFD) indirectly through financial institutions, and directly to debtors by Banco Nacional de Fomento
    Notes: Public financing by Financial Agency for Development (AFD) indirectly through financial institutions, and directly to debtors by Banco Nacional de Fomento
    Notes: Public financing by Financial Agency for Development (AFD) indirectly through financial institutions, and directly to debtors by Banco Nacional de Fomento
    Notes: Public financing by Financial Agency for Development (AFD) indirectly through financial institutions, and directly to debtors by Banco Nacional de Fomento
    Notes: Public financing by Financial Agency for Development (AFD) indirectly through financial institutions, and directly to debtors by Banco Nacional de Fomento
    Notes: Public financing by Financial Agency for Development (AFD) indirectly through financial institutions, and directly to debtors by Banco Nacional de Fomento
    Notes: Tax of 1% levied on cadastral value of property as determined by the national cadastre service (based on market prices).
    Notes: Tax of 1% levied on cadastral value of property as determined by the national cadastre service (based on market prices).
    Notes: Tax of 1% levied on cadastral value of property as determined by the national cadastre service (based on market prices).
    Notes: Tax of 1% levied on cadastral value of property as determined by the national cadastre service (based on market prices).
    Notes: Tax of 1% levied on cadastral value of property as determined by the national cadastre service (based on market prices).
    Notes: Tax of 1% levied on cadastral value of property as determined by the national cadastre service (based on market prices).
    Notes: The IDB has provided a loan of $30 million to finance a home and neighborhood improvement program. Serves as very small source of outside funding compared to deposits.