The Ministry of Environment, Urbanization and Climate Change has made significant amendments to the implementation regulation under Law No. 6306.
According to the decision published in the Official Gazette, the collateral rate for real persons and private legal entities carrying out urban transformation projects has been reduced from 10 percent to 6 percent. This change aims to provide financial relief for urban transformation projects by reducing the collateral amounts calculated based on the building construction area.
WHAT IS THE COLLATERAL RATE?
For parcels containing risky structures, building contractors undertaking the construction work will be required to provide collateral equal to 6 percent of the total cost before obtaining a building permit. This rate is applied to ensure the security and feasibility of the projects.
News Source: 12punto
