There are various tax incentives for new construction which grant property tax exonerations on the improvements made to the property. Here are the current property tax incentives and exonerations.
1. Properties with building permits granted before August 31, 2005 and certificates of occupation granted before August 21, 2006 are exempt from property taxes on the improvements for 20 years from the date that the certificate of Occupancy is issued.
2. Properties with building permits granted after September 1, 2005 or certificates of occupation granted after September 1, 2006 are exempt from property taxes on the improvements for 10 years from the date that the certificate of occupancy is issued. The following exceptions are applicable:
3. The land and improvements of restored buildings located within the areas Santa Ana, Salsipuedes, and sections of Terraplén within the historical district of Casco Viejo which is declared a historical patrimony will be exempt from paying the Real Estate Tax for a period of 30 years counted as from the restoration of the property.