Taxes on House Sale

RDKNIGHT

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Mar 13, 2017
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I was asked this question the other day from a friend of mine , the question if you bought a place for $200,000 then sold it for $300,000 do you have to pay any type of tax to Dominican Republic if don't know the correct answer
 

AlterEgo

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Jan 9, 2009
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I moved this to Legal for a definitive answer. I know DR has had several amnesty programs in the past, where one could pay a much lower rate to bring your property to current appraised value, so there must be some sort of capital gains tax applicable.
 

cavok

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Jun 16, 2014
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There 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.
 

RDKNIGHT

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Mar 13, 2017
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There 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.
thanks i will tell him
 

RDKNIGHT

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Mar 13, 2017
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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.
7 years window on that... but i think capital gains you have a 250K threshold
 

2020

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Apr 10, 2012
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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.

is that 25% automatically deducted by the lawyer who is handling the sale of a seller's proceeds in the DR? or is it up to the seller to make payment? How does the government enforce the deduction?
 
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cavok

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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.
 

cavok

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Jun 16, 2014
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ahh, scotch-free for any gringos!
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.
 

Seamonkey

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Oct 6, 2009
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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 only file for my coorporation, but have never filed personal.
 
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