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Real Estate Transfer Tax (Law 33-91) Once a property has been purchased the following will need to be delivered at the DGII in order to request authorization to pay the transfer tax:
- Original of the Sales Contract
- Seller property Title Certificate
- Seller Personal Identification
- Buyer Personal Identification
Transfer Tax Procedure
3% of the purchase price of the property (as in the sales contract) or the price resulting from the valuation carried out by the DGII, whichever one is higher. Property purchased by the purchase of company shares, then there is a 1% tax added. The DGII has the right to inspect the property before authorizing the payment of the tax. Tax must be paid within six (6) months of signing the sales contract. Paid by the buyer (unless otherwise agreed by the parties) Payable to Local Internal Revenue Office (Dirección General de Impuestos Internos DGII) Once the tax is paid the following are filed with the title registry office in jurisdiciton where property is located: Originals of the sales contract Original property title certificate Receipt of transfer tax payment - issued by the DGII Title registrar registers the purchase in its records Cancels the seller’s title certificate Issues new title certificate in favor of the buyer. Issuance of title certificate takes between 30 and 90 days. Lawyer Fees - 1 to 1.5% of the purchase price
Summary - Taxes and fees will vary depending on values. Safe to assume 5% of the purchase price for taxes, fees and documentation.
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