thanks i will tell himThere is a 27% capital gains tax. Most expats don't pay it because, if you go back to your home country, how are they going to collect it? However, if you buy another place here, or own other property here, DGII could put a tax lein on it if you don't pay. Even if you don't pay here, Americans would have to pay the IRS a capital gains tax.
It's up to your friend if he wants to declare that to the IRS. Wiring $300K back to the US is a huge red flag though. A friend of mine did that with a condo he sold here last year. He hasn't heard from the IRS - yet.thanks i will tell him
7 years window on that... but i think capital gains you have a 250K thresholdIt's up to your friend if he wants to declare that to the IRS. Wiring $300K back to the US is a huge red flag though. A friend of mine did that with a condo he sold here last year. He hasn't heard from the IRS - yet.
Article 289 of the Tax Code established a capital gains tax in the Dominican Republic, currently at 25% for individuals and 27% for companies. Prices are adjusted for inflation in Dominican pesos, not US dollars.
I guess if the seller is a gabacho, then it's hard to enforce if he/she isn't a citizen ...The seller must declare tthe capital gains when submitting their tax return for the year.
tax returns in DR or USA? if it's the USA you have a 250k threshold anything over that is taxableThe seller must declare tthe capital gains when submitting their tax return for the year.
With few exceptions, only people who work in this country and maybe those holding properties in S.R.L.'s would be filing a tax return here.
I have quite a few friends who have sold properties here and moved back to the US. None of them paid a capital gains tax here. Whether or not they paid the required capital gains tax in the US is another story.ahh, scotch-free for any gringos!
That applies to a house that you lived in as your home - not vacation houses in other countries.tax returns in DR or USA? if it's the USA you have a 250k threshold anything over that is taxable
I only file for my coorporation, but have never filed personal.You can count on your 5 fingers the amount of people on this forum that have filed a Dominican tax return and have fingers left over...........
I'm well aware of that....That applies to a house that you lived in as your home - not vacation houses in other countries.