The first-home bonus is an incentive granted by the Government of the Dominican Republic through the General Directorate of Internal Taxes (DGII), designed to make it easier for Dominican families to purchase their first home. This benefit is a great help for those who dream of owning their own home, especially when accessing projects classified as low-cost housing.
What Is Low-Cost Housing?
Low-cost housing refers to properties whose price does not exceed the established threshold, currently set at approximately 5,025,000 Dominican pesos. For a property to be considered low-cost, the project must be registered with the DGII under this classification. This allows the housing units in those projects to be eligible for the first-home bonus.
How Do I Apply for the First-Home Bonus?
To apply for the first-home bonus, you need to follow a few important steps. First, you must select a housing unit in a project approved for this bonus. The unit must meet the established price threshold. The bonus application is then submitted through the trustee (fiduciaria) managing the project, which will handle the entire process with the DGII.
What Percentage Does the Bonus Cover?
The first-home bonus covers approximately between 7% and 8% of the property’s value. This is because the DGII refunds 100% of the ITBIS (value-added tax) applied to the construction materials used in the project. This benefit can represent significant savings for buyers.
Who Must Request the Low-Cost Housing Bonus From the DGII?
The bonus application must be filed by the project’s trustee. This entity is responsible for completing and submitting all the necessary documentation to the DGII. The buyer simply needs to make sure they meet the established requirements and provide the necessary documents to the trustee.
How Do You Know if a Housing Project Is Classified as Low-Cost Housing and Registered With the DGII?
To verify whether a housing project is classified as low-cost housing and registered with the DGII, we recommend checking directly with the developer, the project’s trustee, or accessing the DGII portal using the project’s name. Another important sign is that the project offers the first-home bonus as part of its benefits.
Which Documents Must Trustees File With the DGII to Request the Buyer’s Low-Cost Housing Bonus?
The trustee is responsible for submitting to the DGII a series of documents required for the bonus application. These include the property purchase contract, a copy of the buyer’s ID, certification of the project as low-cost housing, and a sworn statement confirming that the buyer has not previously had a property registered in their name.