DOMINICAN REPUBLIC Law and Practice Contributed by: Alfredo Guzmán Saladín, Fabio Guzmán Ariza and Julio Brea Guzmán, Guzmán Ariza
8.5 Tax Benefits There are no tax benefits from owning real estate in the Dominican Republic. Corporations may be compensated on the property’s depreciation in accordance with the Dominican Tax Code and exemptions may apply depending on the type of real estate, the activities developed at the prop - erty and its location, among other things.
payment of the 3% title transfer tax. Large insti - tutional holders are advised to seek the advice of expert real estate law and tax professionals to mitigate other tax liabilities. 8.3 Municipal Taxes There are no municipal occupation taxes. All planning and land use matters are, however, handled by the municipalities, and a land use tax is levied on developers or owners planning new construction projects. 8.4 Income Tax Withholding for Foreign Investors The basic tax withholdings in the Dominican Republic are as follows: • withholding for interest paid abroad – 10%; • withholding for payments abroad – 27%; and • dividends – 10%.
243 CHAMBERS.COM
Powered by FlippingBook