New Book Edition Analyzes Current State of Property Taxes in Latin America and the Caribbean

The Lincoln Institute of Land Policy released the second edition of the book Sistemas del impuesto predial en América Latina y el Caribe (Property Tax Systems in Latin American and the Caribbean), 10 years after its initial publication. This new Spanish-language edition, edited by Luis Quintanilla and Cláudia De Cesare, discusses the current state of property tax legal frameworks, administrative practices, and emerging trends in the nine countries included in the first edition—Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Peru, and Uruguay—and includes new chapters exploring property taxation in Bolivia, Mexico, Panama, and Paraguay. 

The first edition of the book analyzed the diverse institutional and operational property tax models in the region, from the degree of autonomy that local governments have to design and manage the tax, to the legal and political issues that affect its equity and administrative efficiency. This edition presents new data, lessons, and challenges, addressing the impact of the COVID-19 economic crisis on the performance of the property tax and offering recommendations to build better systems. 

Most Latin American countries face structural challenges that currently limit the ability of the property tax to serve as a significant and equitable source of financing for Latin American cities. Despite the low historical incidence of property taxes as a source of revenue in the region, the book’s analyses show that they have grown 7.2 percent on average in the 13 countries examined over the last two-plus decades, from 0.35 percent (2000) to 0.38 percent (2022) of GDP. Even so, property tax collection in Latin America is far from its full potential: Between 2012 and 2021, property tax revenues in Organisation for Economic Co-operation and Development (OECD) countries exceeded 1 percent of GDP, topping it by nearly three times. Moreover, the average revenue collected by Latin American countries represented only a little more than one-third of the revenue of OECD countries.  

In addition, the COVID-19 pandemic negatively impacted property tax revenue in 2021 (compared to 2019) in 8 of the 13 countries analyzed. The highest average amount collected was 0.41 percent in 2018, representing a steady rise from the 0.35 percent recorded in 2000, whereas post-pandemic, the collection amount fell substantially, to 0.38 percent in 2022. This impact can be attributed in part to the tax relief measures enacted by many countries and jurisdictions, such as extensions and deferrals, discounts, and even forgone interest from overdue accounts and amnesty for properties used for tourism, food, and entertainment.   

The book highlights and recommends how Latin America and the Caribbean countries can build better property tax systems. Countries whose municipalities may lack capacity to manage tax processes themselves should focus on standardizing and regulating collaborative tax systems to allow more efficient collection and cost-sharing. Some countries, the authors suggest, could adjust residential property rates according to owners’ ability to pay, as well as increase transparency. 

“The new edition of Sistemas provides a wealth of resources for managing and improving property tax systems across Latin America and the Caribbean,” said Joan Youngman, executive director of Land and Fiscal Systems at the Lincoln Institute. “The collection of knowledge and expert perspectives from its 17 authors will equip governments in the region with the tools and strategies to optimize the property tax’s ability to serve as a key revenue source.” 

The Spanish-language version of the book is now available on the Lincoln Institute website. An English edition is forthcoming in early 2027, as well as hard-copy editions in both languages.

Lead image: Row of houses in Panama City’s Casco Viejo district. Credit: Judith Engbers via Getty Images