The property transfer tax is the tax buyers to the government to transfer the property under their names.
In the Dominican Republic, the property transfer tax is equal to 3% of the assessed value of that property. That value is not the purchase price, but by the value registered at the Internal Revenue Office. Usually, it is lower than the actual market value of the property.
For the buyers who are purchasing with the help of a mortgage loan from a local bank, they will pay the transfer tax on the value of the purchased property. This final purchase price is known by the bank and sent to the “Internal Revenue Office”.
Buyers who are purchasing a property under a company’s name should know that the due transfer tax is 2% of that company’s capital.
These are the general principles, they are different for each transaction. That is why it is important to consult with a local notary/attorney to make sure you choose the best options tomorrow and for the future when you decide to sell the property. You can request the services of our recommended legal advisor at this email firstname.lastname@example.org