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.

• The tax exemptions only go towards improvements or new construction made to the property. If the property itself is valued at more than 30,000 USD property taxes must still be paid on the portion above 30,000 USD.

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:

• If the new construction is valued at less than 100,000 USD you are entitled to receive 15 year property tax exoneration, from the date that the certificate of occupancy is granted.
• If the new construction is a commercial building, then the tax incentive can only be applied for a period of 10 years, irrespective of the value of the improvements.

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.

• In order to benefit from this incentive, the investment must be made during the ten years following the establishment of the Decree-Law, that is, until August 2007.