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Yes a US corp can own property here.

Yes, we had a property owned by a US LLC. We bought it that way initially. It's my understanding that transferring ownership would involve a 3% transfer tax. Also, if the property was covered by CONFOTUR, the advantages will not convey - they are normally for first owner only.

Thanks a lot

@g n99 What are the benefits of transferring to an LLC?

Some people do it for liability reasons, using a US LLC or a Dominican SRL (the equivalent). If it's a rental property, there can also be some tax advantages with ITBIS paid on goods and services to maintain the property offsetting some of the ITBIS tax due on rental income.  I don't know all the rules on that, it was just mentioned by a friend of mine at lunch yesterday when the topic of the DR imposing taxes on AirBnB rentals came up.

Some people do it for liability reasons, using a US LLC or a Dominican SRL (the equivalent). If it's a rental property, there can also be some tax advantages with ITBIS paid on goods and services to maintain the property offsetting some of the ITBIS tax due on rental income. I don't know all the rules on that, it was just mentioned by a friend of mine at lunch yesterday when the topic of the DR imposing taxes on AirBnB rentals came up.
-@ddmcghee

Thank you!

Hello! Yes, you can but there are a couple of things to bear in mind from a financial standpoint. 1. transferring to the company will entail paying a 3% rate tax and 2. It would lead to the payment of annual tax at a rate of 1%.

Welcome to the forums!   Yes that is my understanding as well.

Hi

We are close to signing for a lot using Guzmán Ariza as our law firm, we are in Cabrera. Do you suggest going straight into a local SLR or converting it later on? Would it be cheaper to just do it right out of the gate creating an SLR? I understand it's 1800 US to convert after the fact! We are doing the 30% down and the remainder when the title is ready around 12 months @ 0% interest, Escrow is held in Miami

Thanks

Do it directly!  Your lawyer should have explained the options and pros and cons up front.

@planner We haven't gone to the Lawyer yet, thats a few days away, hence my bombardment of questions over the past few days. Thursday is approaching and I want to be informed and have my questions ready and be informed on what the answers should be! Thanks again for all the moderators who contribute so much time to this forum!

@michael7014 If you want to hold the property in the SRL, do it all up front! That way you will avoid the 3% transfer fee and the legal expenses involved in the sale. But as was mentioned above, understand that in addition to property taxes, you will also have to pay a business tax of 1% of assets. It's my understanding that the business tax is either 1% or taxes on business income, whichever is greater. If the SRL only owns your property, there is no income generated, so just the asset tax. There are also reductions in property taxes for seniors (I don't recall at what age it starts) and for those with pensioner residency. Those will not apply if the property is owned by the SRL.