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Investments in the Dominican R...
Accompanying Costs
Expenditures at acquisition of the property, besides of cost
of it, includes a real estate transfer tax (Transfer Property Tax). It charges
3% of its appraised value, which is usually lower than the actual, but today in most places due to numerous intentional undervalues is already set a minimum
allowable price the land or property. Lawyer fee is about 1% of the transaction
value.
To reduce the cost of the tax is possible in the following
way. It is necessary to purchase «clean» company (no tax debts) and to
negotiate with the seller of the property contributed to the authorized capital
of the company, and then the seller will come out from the participants of the
company with the buyer money. The buyer would be left with the company in the
authorized capital of which the property is located. This scheme reduces the tax approximately twice, but a lawyer will cost slightly more expensive.
Payment of the purchase price is often accomplished by money
order, also accepted cash and traveler's checks. The most popular checks
are American Express: no limitations on their export , so it is the most
convenient way. Documents on the origin of funds is not required. You can
also
translate into a lawyer's trust account or open a personal account in the
Dominican Republic, but this requires a personal presence. You can also
register a Dominican company and open a bank account for it.
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