How do Real Estate transfer taxes work?
The property transfer tax is established at the National level and it is imposed on any transfer of real property. The tax is 1.5% of the sales price of the property indicated in the transfer deed.
When a property transfer deed is presented for registration in the National Registry they will access the 1.5% transfer tax which must be paid or the deed will not be recorded. This tax is triggered whenever you transfer a property from one party to another party regardless if it is from an individual to a corporation or a corporation to another corporation.