On January 21, the President announced a number of tax and financing measures to promote housing development.
The various tax and financing measures to promote housing development, announced by the federal government, will benefit more than six million Mexicans, according to the Ministry of Finance and Public Credit (SHCP). .
The federal agency noted that the measures announced on January 21 will collectively trigger an investment of approximately 370 billion pesos in the construction of 500,000 homes and the implementation of one million initiatives.
In the Weekly Report issued by his press office, he noted that the new national housing policy is helping Mexico build a stronger housing sector and construct better homes—in suitable locations, with the right features, and with better financing terms.
He emphasized that the measures to be implemented this year demonstrate that the federal government is working to ensure that Mexican families—especially those with lower incomes—have the assets they need to improve their quality of life.
He stated that housing development is a strategic factor for Mexico, since, in addition to improving families' well-being, it has a direct impact on national economic growth.
In particular, the construction sector plays a key role in spurring investment, creating jobs, and strengthening the domestic market, the federal agency emphasized.
The Ministry of Finance noted that, starting in 2013, strategies were developed and programs were launched that yielded concrete results within a few months.
Thus, in 2013 and 2014, the initial results were as follows: the sector’s cash flow increased, housing subsidies were raised, and co-financing schemes were created, along with loans for state and municipal employees, access to second mortgages, and financing for rental housing, among other measures.
In line with the National Policy, on January 21, various fiscal and financing measures were announced to promote housing development; these measures are part of the efforts to improve families’ well-being.
He noted that various tax benefits related to housing were established, with the aim of creating a better tax framework that would provide greater certainty and incentives for construction and lower prices for the benefit of Mexican families.
He indicated that a plan is being established to regularize Value-Added Tax (VAT) debts owed by small providers of residential construction services.
Meanwhile, construction companies that have contracted services from suppliers who have settled their VAT debts may deduct the payments made to those suppliers from their income tax (ISR).
He also noted that construction companies that sell homes on an installment basis will pay income tax only on the income they actually receive each year, and not on the total amount of the sale.
In addition, initiatives were implemented in various areas to support families who wish to purchase a home or pay less for the one they already own, along with regulatory measures to promote orderly urban development.
For example, he noted, the fee for obtaining title deeds for homes purchased by Infonavit beneficiaries with incomes below 2.6 times the minimum wage is being eliminated.
In 2015, all new Infonavit loans will be denominated in pesos, and the Institute will assist with the transition of existing loans denominated in minimum wages; it will also support the purchase of energy-efficient appliances so that families can pay less for electricity, water, and gas.
In addition, Fovissste and Infonavit beneficiaries will be able to use the balance in their housing subaccount to obtain a mortgage loan from the housing fund that best suits their needs, and they will be able to consolidate both loans.
For government employees, it is not necessary to participate in a lottery to obtain a Fovissste loan, and housing initiatives will be carried out to promote development in Chiapas, Guerrero, Oaxaca, and Michoacán, among other initiatives.
The SHCP emphasized that all these measures were implemented thanks to the combined efforts of stakeholders from various sectors, including national housing agencies, the financial sector, the legislature, and housing developers.
