Capital gains tax in DR

Not sure about on the DR side, but the IRS still wants their piece of the pie!

Tax on sale of foreign real estate

Capital  gains are very  different here. I cannot even begin to explain it.

It is exactly why I'm asking.

Is it worth buying a home when your profit is eaten completely by taxes?   In USA- and most of the world, the way is calculated is as follow:.  . 
As an ex. If original cost basis was 300,000.  Then I spent 50,000 on home improvement ( anything that I I added and can not take with me is considered home improvement) -  the new cost basis is 350,000.  I, then sale it for 400,000-  the gain is 50,000.  I pay taxes on those 50,0000.    (I obviously paid taxes when I bought  it for 300,000 and paid taxes on the 50,000 improvements-  so why would I pay taxes on the 350 AGAIN? 

Any  of you who have lived here for a while have  perhaps experienced buying and selling your property?   Do you know how your capital gains taxes where calculated?

I think in DR home improvements are not included on the cost basis-     

If this is the case then how is it beneficial to buy a home?  Why would anyone do it?   


I think I need to speak to an expert in taxation-

This could be the answer :

=> TABLA DE MULTIPLICADORES PARA EL AJUSTE POR INFLACIÓN DE LOS ACTIVOS DE CAPITAL

If it's not, talking directly to the DGII, you would get up-to-date info, at no cost.

First of all love love the name guineo verde, LOL. 
Secondly and thirdly, thank you for the link and advice!!!

I found this in Ley no 171-07 - the incentives for pensioners and rentistas to gain residency. This tells me there is a tax on the gain, but with your residency, you might get a discount!

ARTICLE 14. All properties acquired by pensioners and rentiers, under the protection of this law, at the time of sale to third parties, will be exempt from the payment of 50% of the tax on capital gain.

ARTÍCULO 14. Todos los inmuebles adquiridos por los pensionistas y rentistas, bajo el amparo de esta ley, al momento de su venta a terceros, estarán exentos del pago del 50% del impuesto sobre ganancia de capital. 

Thank you for that.  It looks to me that one does pay taxes on all capital gains—-.  -   Double taxation 🤦🏻‍♀️in DR

No we don't pay tax on all capital gains. It isn't that simple.

There is hope then.  Thanks planner -  and I definitely understand that is not that simple-  can't find answers- 

Do you know of anyone experienced ( tax) on this field, preferably in regards to expats - that I could consult with?🙏

Do you speak Spanish?   And the other end is American taxes?

Yes I'm fluent in both English and Spanish—-and - and yes IRS

Let me ask the ones I know!

Here you go Robin Boyd 216-200-3478. Her number and WhatsApp!

She does accounting/ consulting for Americans here and those who live in both places!

Thank you VERY MUCH!!!

You are very welcome!

planner wrote:

Here you go Robin Boyd 216-200-3478. Her number and WhatsApp!

She does accounting/ consulting for Americans here and those who live in both places!

Hi Planner, does Robin speak English?  I would be interested in contacting her too.  I would like to consult on the tax pros and cons of renting when I'm not there in the DR.

I can attest she does and was very helpful-  if she doesn't have an answer right away, she will find it for you. 

Thank again planner for recommending her.

yes she does, she is an American living here!