The Senate of the Dominican Republic has approved a bill on economic growth measures that significantly reduces the tax burden on the sale of residential real estate. The tax rate on capital gains from such transactions has been reduced from 25% to 10%, while the tax becomes one-time and final. The initiative was introduced by the executive branch and is part of a broader fiscal reform strategy.
The key innovation is full tax exemption if the entire proceeds from the sale are used to purchase another home within six months. If only a part of the funds is reinvested, the exemption is provided proportionally. This creates an incentive for housing renovation and increases mobility in the market.
The new rule applies not only to individuals, but also to legal entities that own real estate without commercial use. However, if the housing is used in business, the benefits do not apply. Thus, the reform is aimed specifically at private owners and families who want to improve their living conditions.
Source: Infobae
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