Santo Domingo.– Local taxpayers paid RD $7.9 billion last year on real estate transactions, 50% of them were carried out in the National District, Supreme Court (SCJ) president Jorge Subero Isa, revealed during a breakfast with journalists who where invited to tour the new fully computerized facilities of the Superior Land Court and Property Title Registrar divisions.

According to the official, real estate transactions in the Dominican Republic rank third in revenues generated for the government, behind customs and tax departments.  

The goal of digitizing all property titles through 2010 is being achieved with Inter-American Development Bank (IDB) funding, Subero said. Property titles for 13 provinces and the National District are now available in electronic form, an advance that came after the passing of Law 108-05 on Real Estate Registrations.

Above Article excerpt from Dominican Today

Taxes and Expenses on Property Transfers

Taxes are paid based on the market value of the property as determined by the tax authorities, not on the price of purchase stated in the deed of sale.

Buyers wishing to lessen the impact of transfer taxes have the option of using a loophole in the law which allows the contribution in kind of property into corporations without paying transfer taxes. For this, cooperation from the seller is essential.

Above Article excerpt from Guzmán Ariza & Asociados