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A transfer tax of 3.1% of the government assessed value of the property will be imposed.
This tax transfers ownership from the vendor to the new buyer.
The tax is based on the market value of the property as determined by the tax authorities, not the purchase price in the deed of sale.
Tax authorities often value properties lower than their market value.
The tax usually ranges from $2,000 to $6,000, depending on the purchase price of the property.
Some investor/pension residencies may be exempt from this tax. Please inquire for more information.
Associated Fees Legal/Professional
Legal and Professional Fees
Your real estate lawyer will charge a percentage of the purchase price for their services.
The standard fee is typically between 1% and 1.5% of the purchase price.
This fee covers all necessary expenses, due diligence, and the transfer of ownership into your personal name or corporation, depending on your preference.
Note that the seller or developer, not the purchaser, is responsible for paying these fees.
Taxes
Relevant Tax Fact Sheet
An annual 1% tax is imposed on real estate properties owned by individuals, based on the cumulative value of all properties owned as assessed by government authorities.
Note that the assessed value of the property does not typically reflect its true market value and is usually lower.
The 1% tax is applied only to property values above $6,858,885.00 DOP (approximately $150,000). For un-built lots, the 1% tax is calculated on the actual appraised value without the exemption.
The real estate tax is due annually on or before March 11, or in two equal installments: 50% on or before March 11 and the remaining 50% on or before September 11.
The amount of the exemption is adjusted annually for inflation.
Certain properties are exempt from paying the real estate tax, such as: (a) farm properties; (b) homes whose owner is 65 years old or older, and has no other property in his or her name; and (c) properties owned by companies, which pay a separate tax on their company assets.