A step towards greater transparency in the Dominican real estate market
The General Directorate of Internal Taxes (DGII) of the Dominican Republic has strengthened the obligation of taxpayers to detail and document payments in transfers and real estate transactions, a provision that represents a significant step in the formalization of the real estate sector.
The main objective is to close gaps to practices that have historically favoured tax evasion and underreporting of properties in contracts. By requiring burdensome payment receipts for each transaction, the measure not only strengthens tax collection but also fosters a culture of greater transparency in transactions, generating confidence for both local actors and foreign investors interested in the Dominican market.
The scope of this regulation transcends the merely fiscal. For buyers and sellers, it means greater responsibility in documenting each payment, which increases the formality of processes. While this requirement may add some administrative burden and short-term additional costs, it will contribute in the medium and long term to reducing litigation, protecting the rights of the parties, and consolidating a more secure and reliable real estate system.
In short, the measure reflects a change in the State's vision, moving from a reactive control model to a preventive one, aimed at anticipating risks and strengthening legal security in real estate operations.
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The regulations require documenting payments in transfers and real estate transactions, reinforcing transparency and security in the real estate market.
