Can anyone inform/educate me on how much are the
taxes one pays when selling a home? no realtor involved
..just put up a sign w/ my number will involve a lawyer
for the paper work but, it just occurred to me that I might
have to pay a % of taxes if I do sell it.
thanks
Depends. The buyer must pay the taxes for transfer of title and registration apart from other fees.
The seller will not pay any taxes, unless he(she) is current and has all the paperwork to date of having met the IPI/IVSS, which are paid in two parts. One by March 11th and the other by September 11 yearly.
This is 1% of the global amount above RD$ 6.8 million.
If the owner if older than 65 and it's the only property he(she) owns, they are exempt of this tax.
Also foreign retirees (pensioners) that receive their funds from sources outside of the DR (like SS and such).
There are also other exemptions to this rule but generally only apply in cases far remove from a home you live at the city.
If your property has not paid the said IPI/IVSS and it did qualify under the global amount, then the seller will have to pay the said taxes and penalties for the transfer to be approved.
I know of people that (like me too) buy land in the rural areas and carry out extensive "invernaderos" and a certain number of cows that produce milk, sold to the dairies. That way you also avoid paying the taxes on such property and fall under the exemption (this however doesn't apply to medium and large commercial operations.)
Think of a farm or hacienda!
The property itself will not pay the fee over the threshold amount of the IPI/IVSS, but still counts towards validating the other non-exempted properties on the tax.
Before you close the contract, check that your property is to date on this and if it applies or not before you sell it and face penalties atop the missed payments.
