Taxes and Expenses on Property Transfers
Taxes must be paid before filing the purchase at the Title Registry Office. Taxes and expenses on the conveyance of real estate are approximately 3.1% of the government-appraised value of the property, as follows:
* 3% Transfer Tax (Law # 288-04)
* Minor expenses such as cost of certified check required to pay taxes to Internal Revenue, sundry stamps and tips at the
Taxes are paid based on the government assessed value of the property or the price of purchase stated in the deed of sale, whichever is higher.
Properties held in the name of an individual are subject to an annual property tax ("IPI") of 1% of government-appraised value in excess of 6,500,000 pesos except for unbuilt lots or farms outside city limits and properties whose owner is 65 years old or older, who has registered it in his or her name for more than 15 years and has no other property.
Acquisition of Real Estate by Foreigners
There are no restrictions on foreigners purchasing or inheriting real estate in the Dominican Republic. Formerly, Decree 2543 of March 22, 1945 and its amendments required that foreigners obtain prior Presidential approval except in certain cases. Decree 21-98 of January 8, 1998 abolished this regulation and established as the only requirement that the Title Registry Offices keep a record, for statistical purposes, of all purchases made by foreigners.