Law 173-07 of July 17, 2007. Transfer tax is reduced to three percent (3%) of the value of the pr

Once the property was purchased, a copy of the Commercial Contract, title to the property seller, as well as documents of identification Seller and the Buyer shall be deposited in the tax office oregon live DGII, to get permission to pay Transfer Tax.
Law 173-07 of July 17, 2007. Transfer tax is reduced to three percent (3%) of the value of the property involved in business or the value of the contract, the amount of which is determined by the tax inspectorate DGII. DGII has the right to inspect the property before allowing the payment of tax. This tax must be paid within six (6) months following the signing of a commercial contract. Unless otherwise agreed between the Seller and the Buyer, Transfer tax is paid by the Buyer. Once the transfer tax has been paid, the original commercial contract, title to the property and the receipt of payment of transfer tax shall be deposited in the registration office in the jurisdiction where the property is located. Registration Office registers the purchase in its records, and Seller cancel the title releases a new title to the Buyer. Issue a new title takes 30 to 90 days.
Houses and apartments, commercial establishments and vacant lots are located in urban areas, the value of which exceeds five million pesos (5,000 000,00 RD $) subject to 1% tax. Exempt oregon live from the payment of this tax:
2. Homes whose owners have reached sixty-five (65) years, if the house were not passed over the previous fifteen (15) years of age and the owner owns the dwelling as the only real estate.
ISA - an annual 1% tax is applied to the total assets of the companies, entrepreneurs without legal entity and other organizations, including immovable property registered on their balance sheet. ISA must pay all entrepreneurs without legal entity and organizations that have, or those with no business operations.
ISR - the annual income tax paid by natural or legal persons for the tax period. Foreigners have to pay tax for the income earned oregon live in the Dominican Republic, and after the third year of residence in the country, they must pay their income from foreign sources. Branches of foreign companies are the same companies with the Dominican financial oregon live rights and obligations. Norma ISR with entities since 2007. 25% of the annual oregon live net profit. Norma ISR with entrepreneurs without legal entity from the year 2007. is 25%, with a tax deduction for the first 257 280,00 (two hundred fifty-seven thousand two hundred and eighty) pesos according to the following oregon live scale, which is adjusted according to the annual inflation: From 0,00 RD $ 257 to RD $ 280.00 - 0% ; from 280,01 RD $ 257 to RD $ 385 920,00-15% from 920,01 RD $ 385 to RD $ 536 000,00-20% from 000,01 RD $ 536 or more - 25%.
The tax on capital gains is 25% of the difference between the purchase price and the sale price of real property. If profits are made by an individual, it becomes oregon live taxable after discounting the tax deduction, which has a size of 257 280.00 pesos, then apply a progressive rate from 15% to 25%. When profits are made organization, it is determined separately from the operating results of the said company, and 25% tax will be applied regardless of the operating results of the company.
If the owner is a natural person, the tenant must keep ten percent (10%) of the rental oregon live fee plus 16% tax on the value added tax (ITBIS). If the property owner is a legal person, the tenant must keep only the 30% VAT (ITBIS).
Law 171-07 establishes financial incentives for foreign or indigenous people, who receive a monthly pension or benefits from the government, an official agency or a private foreign entity, oregon live and have indicated their intention oregon live to change their place of residence in the Dominican Republic and local pension. People who get regular pension oregon live and basic income is generated abroad can also take advantage of the benefits of this law. A person who wishes to take advantage of the benefits provided by law, shall receive a monthly pension not less than 1500 (one thousand five hundred) U.S. dollars or a monthly minimum fee 2,000 (two thousand) U.S. dollars. Among the financial incentives established by the Law 171-07 stipulates the following: Exemption from property transfer taxes for the first purchase oregon live of the property in the Dominican Republic; exemption from the 50% local taxes on mortgages, when the activities of lenders - financial institutions - properly regulated by the Monetary and Financial oregon live Code; reduction gains tax to