Title Transfer Tax in Dominican Republic

Dominican Title Transfer Taxes

Regardless of where you purchase property in the Dominican Republic, the one thing you can be sure of is the tax you will pay to transfer title into your name.

A 3% tax is assessed on any transfer of ownership of real estate (Art. 20 of Law #288-04). Taxes are paid based on the market value of the property as determined by the appraisal done by tax authorities, the ‘Dirección General de Impuestos Internos’ or DGII as it is known locally by its abbreviation. The tax paid is not based on the price of purchase stated in the deed of sale.

Taxes and expenses are approximately 3.1% of the government-appraised value of the property. The actual tax to be paid to is 3% plus some minor expenses such as cost of certified check required to pay taxes to Internal Revenue, sundry stamps and tips at the Registry which comes to around .1% of the property value. Note that this is tax payment, and does not include attorney fees.

This tax must be paid before filing the purchase at the Title Registry Office. The deed of sale cannot be filed at the Title Registry Office without paying this tax. The transfer tax must be paid within six months of the date of the deed of sale (Art. 7 of Law #173-07). Noncompliance is subject to fines.

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