Purchasing a Home under a Corporation

punta cana corporation

There are some advantages and disadvantages to purchasing a property under a corporation as opposed to purchasing under an individual in the Dominican Republic.

An advantage to an individual, faster sales process and transfer, and the property is exempt from property tax if it is less than RD $ 5,000,000.00, although when you sell you will pay an amount equal to 25% income tax over the amount of the sale.

But a serious disadvantage would be that the transfer is subject to a tax of 3% of the sale, the person is exposed to personal lawsuits, subject to the reservation hereditary and legal status of marriage, subject to tax Probate, and the property loses tourism incentives during a resell.

If purchased in a commercial society, the benefits include exemption from transfer tax if the sale is by contribution in kind, they avoid the legal restrictions on Probate, and expose the real property to be original obligations responsibility personal favors short-term resale and incentives are retained with the transfer of company shares to the acquirer.

Although the disadvantages for the sale of the property requires an Assembly to approve the transaction, paying taxes on assets, and verify if the company is current on their tax obligations.

However, the advantages and disadvantages that we have indicated and no matter how it intends to acquire your property, you should, before purchasing, contact the services of a professional lawyer you trust, for the total clearance of the building, until the final transfer to protect investment and avoid legal complications to make the investment.

*This information may be dated, please consult a lawyer or accountant for updated information.

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