New DGII Regulation: Payment Methods Must Be Declared for Real Estate Transfers

New DGII Regulation

New DGII Regulation: Payment Methods Must Be Declared for Real Estate Transfers from May 2025

Starting May 1, 2025, the General Directorate of Internal Taxes (DGII) in the Dominican Republic will no longer authorize real estate transfer payments that do not comply with General Rule 07-22. This regulation mandates that buyers and sellers must declare the payment method used for notarized real estate transactions exceeding one million Dominican pesos.

What Does This Mean for Real Estate Transactions?

According to the DGII, all notarized sales contracts involving the transfer or establishment of real estate ownership must explicitly state the payment method used. This applies specifically to:

• Sales contracts

• Payments in lieu of obligations (Dación en pago)

• Exchange agreements (Permuta)

• Success fees (Cuota Litis)

• Amicable partitions (Particiones amigables)

Consequences of Non-Compliance

If this requirement is not met, the DGII will not issue authorization for the payment of the transfer tax or its release. This means that the real estate transfer will not be officially recognized and will not be legally valid.

Notary Responsibilities

Notaries are required to request this information from the contracting parties and keep it on file. While proof of payment does not need to be directly submitted to the DGII, notaries must ensure compliance with the legal requirements.

More Information

This new regulation will take effect on May 1, 2025. For questions or further details, interested parties can contact the DGII:

• Phone: (809) 689-3444

• Email: información@dgii.gov.do

• Website: www.dgii.gov.do