Are There any Real Estate Taxes in DR ?

Naked_truth777

New member
May 11, 2006
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any taxes or special assessments like for roads sewers water etc ?


in US it is about 2 % of market value of the property . If there are taxes in DR how much are they ? percentage wise


thank you :bunny:
 

Bob K

Silver
Aug 16, 2004
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I believe it is 1% of assessed value however if owned in your name (not a corp) then the first approx $150,000 is exempt from taxes. If owned in a Corp. name then the tax is on the total value (no expemtion)

Bob K
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
40,964
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I believe it is 1% of assessed value however if owned in your name (not a corp) then the first approx $150,000 is exempt from taxes. If owned in a Corp. name then the tax is on the total value (no expemtion)

Bob K
Pesos or dollars?
 

Ken

Platinum
Jan 1, 2002
13,884
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I suggest reposting your question in the Legal section so that you can get a reply from Fabio Guzman, the attorney who answers questions in that setion. He can give you an exact answer.
 

bob saunders

Platinum
Jan 1, 2002
32,504
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dr1.com
Right from Mr Guzman

A 1 percent annual tax is assessed on any real property
owned by individuals, based on the value of the
property as appraised by the government authorities
(articles 1 to 3 of Law 18-88). Properties are valued
without taking into account any furniture or equipment
to be found in them. For built lots, the 1 percent is calculated
only for values exceeding DOP 5 million. For
unbuilt lots, the 1 percent tax is calculated on the actual
appraised value without the DOP 5 million exemption.
Individuals must pay this tax every year on or
before March 11, or in two equal installments: 50 percent
on or before March 11, and the remaining 50 percent
on or before September 11.
The DOP 5 million threshold is adjusted annually
for inflation.
The following properties are exempt from this tax:
? built properties valued at DOP 5 million or below;
? farm properties;
? properties whose owners are 65 years old or older,
who have owned it for more than 15 years, and
who have no other property in their name; and
? properties subject to the tax on assets.
Real Property Transfer Tax
A 3 percent tax is assessed on any transfer of ownership
of real estate (article 20 of Law 288-04). The
transfer tax is paid based on the market value of the
property as determined by the appraisal done by the
DGII, not on the price of purchase stated in the deed
of sale. The deed of sale cannot be filed at the title
registry office without paying this tax. The transfer tax
must be paid within six months of the date of the deed
of sale (article 7 of Law 173-07). Noncompliance is
subject to fines.
Properties worth less than DOP 1 million acquired
through a bank loan are exempt from the transfer tax
(article 20 of Law 288-04). The DOP 1 million exemption
is adjusted annually for inflation.
Tax on Mortgage Tax
A 2 percent tax is levied on all mortgages recorded
in the Dominican Republic (article 8 of Law 173-07).
Motor Vehicle Transfer Tax
A 2 percent tax is levied on any change of ownership
of motor vehicles (article 9 of Law 173-07). The
transfer tax must be paid within three months of the
date of the acquisition. Noncompliance is subject to
fines.
Inheritance and Gift Taxes
The estate of any person, Dominican or foreign,
whose last domicile was in the Dominican Republic is
subject to Dominican inheritance taxes. The inheritance
of property located in the Dominican Republic is
subject to Dominican inheritance taxes, regardless of
the nationality or domicile of the deceased (article 1 of
Law 2569 of 1950).
Law 288-04 lowered inheritance taxes to 3 percent
of the value of the estate, after deductions, as determined
by the tax authorities. Medical and funeral expenses,
as well as outstanding debts and mortgages, are
some of the allowed deductions. The rate is increased
to 4.5 percent for beneficiaries who do not reside in the
Dominican Republic (article 7 of Law 2569).
Beneficiaries must file a declaration with the tax
authorities within 90 days of the death of the decedent.
An extension of an additional 3-1/2 months is
possible in complex cases (article 26 of Law 2569).
Delays in filing are subject to a 2 percent per month
penalty, up to a maximum of 50 percent of the tax
owed (article 9 of Law 2569).
Gifts are taxed at a 25 percent rate (article 6 of Law
2569), except for the following, which are exempt:
? gifts of less than DOP 500;
? gifts to government institutions or recognized nonprofit
organizations; and
? gifts to the family homestead (bien de familia).
PRACTITIONERS? CORNER
TAX
 
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SteveS

Member
Apr 15, 2008
297
24
18
Can anyone confirm current taxes. I know Bob copied the legal sections, but with the financial crisis and whatnot certain taxes were suspended to maintain sales in the real estate sector, but I forgot which and for how long, and I suppose the main question is are they back yet?!

We just sold our place on the weekend and bought another, and I'm trying to get to grips with what taxes will be...