Also, generally speaking, it is always a good idea to compartmentalize your holdings anyway. The meaning is, keep you investments or properties separated. Your Dominican holdings with one entity, your offshore mutual funds from Europe with a Panamanian Foundation and so on. . The New Capital Gains Tax . The real benefit to owning your Vacation Property or other real estate through a local Dominican Corporation, is tax savings.
Most foreign investors are unaware of the very recent capital gains tax imposed into the tax code.
The fact of the matter is, I would wager to guess that most Dominicans are probably not aware of it either. If you ask most Dominican Real Estate agents, they will most likely give you the boiler plate reply regarding title transfer tax, but may indicate that there is no capital gains tax in the Dominican Republic. While this used to be true in the past, it is not the case today. Fear not, we have a solution. . Most governments assess capital gains and property title transfer taxes when a property title changes hands.