What is the property transfer tax fee?
In addition to the closing costs, buyer will be responsible for paying the property transfer tax fee. Under Law No. 288-04, the transfer tax is set at 3 percent of the government-appraised/set value of the property or of the purchase price, whichever is higher, and must be paid to the Tax Authority. Most of the land in the Dominican Republic already has a set value and does not need to be appraised. QUESTION: What are the annual property taxes? ANSWER: Properties held in the name of an individual are subject to an annual property tax (IPI) of 1 percent of the government-appraised value in excess of RD$5 million pesos (about US$150,000), 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. If the property is held by a corporation, no property tax is due. Instead, the corporation must pay a 1 percent tax on corporate assets. However, any income
