buying price and declared price

I don't know the answer regarding the formula for purchase price and declared price. It is similar to what is done in the US.....tax assessment and real estate assessment. You don't want to pay taxes on the real estate value. You want to pay on the tax assessment value.

A good lawyer should be able to give you a definite answer. It all has to do with houses in the DR being taxed if over a certain value. You want the tax value to be less than that benchmark.

Good luck. Maybe someone on the board can answer more specifically. If not, ask a good lawyer.

Lindsey

It doesn't have to do with dollars or pesos, you close a deal on a house and make two contracts, one with the value you are buying it for, a contract for you an the seller, and another one that you will use for putting the house on your name, for a lower amount to pay less transfer tax and if possible avoid IVI tax every year (I think the threshold is 5,000,000 pesos , below that you don't pay yearly iVI tax. The best is to check the current value of the house according to IVI and make a reasonable appraisal.

I have been thinking if I have moral problems if I would do this, but in view of how taxes are stolen here, I wouldn't feel guilty.