tax and selling a home

billyidol said:

im selling ahome in the dr
please tell me what the government will want , if anything at all, from my profit made
...that is to say does the government reqire capital gains to be paid on the profit???

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If you've bought your home more than three years ago won't have to pay any tax by your profit.

billyidol, I'm going to send this post to the legal section and perhaps our lawyer that gives advice on the board will answer this question.

Article 289 of the Tax Code established a capital gains tax in the Dominican Republic, currently at 25%.

Prices are adjusted for inflation. For example, if you bought your house 2 years ago for $3 million pesos and you sold it this year for $4 million pesos, while inflation during the last two years has been a cumulative 20%, the capital gains to pay would be:

$4 million pesos - $3.6 million pesos ($3 million pesos x 20%) x 25% tax = $100,000 pesos.

The DGII (Internal Revenue) has been very lax in collecting capital gains taxes.