Homes with a value equal to or less than RD$4.5 million may apply to the trust
Taken from Listín Diario
SANTO DOMINGO. – The Executive Branch enacted Law 338-21 for the Development of the Mortgage Market and Trusts in the Dominican Republic, through which first-time homebuyers can apply for a series of benefits, provided that the purchase price does not exceed 4.5 million pesos.
The law increases the reference value of low-cost housing and exempts first-time homebuyers from paying real estate transfer tax.
The legislation modifies Law 189-11, which stipulated that the value of the property to be applied to the trust could not exceed two million pesos.
Construction trusts created for the development of duly qualified low-cost housing projects will be exempt from paying one hundred percent (100%) of the taxes described below:
– Income and Capital Gains Tax provided for by the Tax Code of the Dominican Republic and its amendments.
– Any tax, duty, fee, charge, or contribution that may be applicable to bank transfers and the issuance, exchange, or deposit of checks.
– Tax on assets or wealth, including, but not limited to, the Real Estate Property Tax, Luxury Housing and Undeveloped Urban Lots (IPI) established by Law No. 18-88, and its amendments.
-Construction taxes, fees, charges and levies established in the Law that creates a System for the Preparation of Technical Regulations for the Preparation and Execution of Projects and Works Related to Engineering, Architecture and Related Branches, and its Implementing Regulation, as well as any other legislation that has been created or is to be created, that affects construction with the collection of taxes, fees, charges or levies, including any other taxes on construction services or other related services provided for the benefit of the project.
-Taxes on the transfer of real estate and registration of real estate transactions in general.
