What is the First Home Bonus?
The First Housing Bond is a compensation or bonus of the Tax on Transfers of Industrialized Goods and Services (ITBIS) paid in the construction process of low-cost housing projects developed under the figure of the trust.
What is a low-cost home?
It is a house classified as low cost by the National Housing Institute (INVI) whose sale price is equal to or less than three million six hundred twenty-seven thousand, nine hundred sixty-nine pesos and seventy-six cents (RD $ 3,627,969.76), for contracts signed as of January 1, 2020.
Conditions to benefit from the Low Cost Housing Bonus?
To benefit from the bonus for the acquisition of low-cost homes, you must meet the following conditions:
- The residential project where you are acquiring the home must be qualified by the National Housing Institute in the category “Low-cost housing” and be registered with the General Directorate of Internal Taxes.
- Being an acquirer of a first and only home in the country. In the case of married acquirers under the community property regime, both spouses must comply with this requirement.
- It is prohibited to sell the house for a minimum period of 5 years. In case of default, the acquirer is obliged to refund the amount of the bonus granted.
How much is the First Home Bonus?
El bono The housing voucher is equivalent 8% of the total value of the house.
Additionally, the Government has ordered that banks and associations that negotiate mortgage loans with first-time home buyers eliminate the collection of the title transfer tax established at 3% of the value of the property, which generally these entities include in the contracts of purchase and apply them to the buyer.
This means that those who are interested and achieve a housing voucher can obtain a saving of 11% of the total price of the house, prior to presenting a certificate of non-ownership in the National Cadastre Directorate, copy of a certificate or passport and making the application through the fiduciary.
Total Bonus: 8% reduction on the sale price + 3% not to pay for the transfer of title.
In total that represents an economy of 11% of the sale price.
Do not hesitate to contact us and Pérez Real Estate will be happy to assist you and explain everything about the first home bond and the trust.