Is Assessed Value or Purchase Price Used for the Transfer Tax ?

J

jjsmee

New member
Nov 9, 2005
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Hello Folks,

Ready to close on a condo on the North Coast next week. But I am unclear on how the Transfer Tax is to be calculated. Is it based on the assessed value of the property or the purchase price if that is higher ?

I've seen from other posts that the tax is 3%. Also can someone tell me if there is any tax (beyond a small doc fee) on the mortgage loan or lien being established on the property at purchase in addition to the 3% transfer tax and the 1% document fee ?

Thank you in advance for any helpful advice.

John
 
T

twhitehead

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Nov 1, 2003
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If the property is currently owned by a Dominican Incorporated company, why don't you purchase the company (and its assets being the condo in question) thus avoiding the transfer tax. Many other advantages of doing it this way as well - search in DR1 under Incorporating...tom
 
T

twhitehead

Bronze
Nov 1, 2003
618
14
0
twhitehead said:
If the property is currently owned by a Dominican Incorporated company, why don't you purchase the company (and its assets being the condo in question) thus avoiding the transfer tax. Many other advantages of doing it this way as well - search in DR1 under Incorporating...tom
Click to expand...


Sorry John: was rereading next post and maybe this route does not apply anymore...tom
 
J

jjsmee

New member
Nov 9, 2005
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Transfer Tax

Unfortunately the corporate route is not available on this transaction.
Also has anyone heard of a mortgage tax or tax to record the mortgage lien ?

I am getting hit for 2% on that. Man I hate taxes.

John
 
F

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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If the seller is giving you the loan, there is no need to pay anything in addition to the transfer taxes. The Registrar records automatically a "Privilegio del Vendedor No Pagado" (literally, "the privilege of the unpaid seller") on the title for the unpaid balance of the purchase price. The ?Privilegio? has the same effects as a mortgage.

If this is not the case, 2% for transfer taxes and legal fees is reasonable..
 
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