What taxes are due when closing the purchase transaction?
The complete transaction cost, including all the proceedings for location, registry and emission of title, is estimated at US$1.000 for legal fees plus 4.3% for the Property Transfer Tax based on the property appraisal value. These taxes are paid on the basis of the greater value between the one established by the government tax agency and the value declared in the “Definitive Sales Contract”. These values may vary, and are presented here for illustration purposes only. 2.5. Are there fiscal restrictions to repatriate money from the rent of the units? It is necessary to make a distinction between two types of renters. If it is a company the one that rents, it becomes fiscal agent of retention and must withhold ten percent (10%) on the amount of the payment and forward it to the government tax agency. If the renter is an individual or “physical person” the payment of the rent to the owner – landlord should be in full, without any withholding or retention. For the owner or landlord, the
