The Executive Power today promulgated Law 338-21 that modifies Law 189-11 for the Development of the Mortgage Market and the Trust in the Dominican Republic.
Through it, the reference value of low-cost homes is increased and the payment of real estate transfer tax is exempted for first-time home buyers through trusts.
Regarding the tax exemption regime, established in Article 131, the Law provides that in Paragraph I that purchasers of houses through duly accredited low-cost housing trusts, will have the right to receive a bonus when this is their first acquisition.
It specifies that the bond will be equivalent to the corresponding value of the calculation based on the standard cost of materials and services subject to the Tax on the Transfer of Industrialized Goods and Services (ITBIS), paid during the housing construction process.
“This value will be determined by the National Housing Institute (INVI), in coordination with the General Directorate of Taxes,” he adds.
It specifies that the acquirer must request the bond through the trustee that administers the corresponding low-cost housing trust.
The legislation highlights that said amount will serve as a complement to the initial amount for the purchase of the home, for which the General Directorate of Internal Taxes (DGII) will establish, by means of a general rule, the delivery mechanisms that seek these purposes.
“However, if at the time of receipt the home balance process had already been completed, said value will be returned to the purchaser and, if financing has been taken, it will be applied to the unpaid balance,” he says.
Low-cost housing projects are housing projects with the participation of the public or private sectors, whose units will have a sale price equal to or less than RD $ 4,500,000, an amount that will be adjusted annually for inflation.
