The Rule contained in Article 1594 of the Civil Code of the Dominican Republic establishes that: All those who are not prohibited by law can buy or sell . The foregoing evidently implies that the sale of parents to children is allowed by law, since it is not prohibited.
Now, in the tax aspect, when taxes are going to be paid before the General Directorate of Internal Taxes, there is a treatment for sale that is presumed, until proven otherwise, among some relatives as a donation.
Indeed, this is the spirit of the rule contained in Article 17 Law 2569 of Taxes on Inheritance and Donations. In practice, it is very common for some parents to donate a property to their children and to try to pay less taxes they want to simulate it from a sale.
Now, for this sale simulation to proceed as a valid transfer, it must have certain characteristics, such as the following:
1.- It must be proved before the General Directorate of Internal Taxes (DGII) that the buyer has sufficient income to buy the property that his father, his mother or both sold him.
2.- You must provide written evidence of payment to the General Directorate of Internal Taxes (DGII), such as a certified check already exchanged or proof of bank transfer, to demonstrate the purchase in the event that the sale exceeds one million Dominican pesos.
3.- It is due to pay the transfer tax, this implies that the buyer must acquire a certified or administration check payable to the competent Internal Tax Collector.
Thus, if these requirements are demonstrated or met to the General Directorate of Internal Taxes (DGII), it can proceed to transfer the property in the name of the buyer in its system and the same continue with the transfer process before the Competent Registry of Titles.
The foregoing does not imply that if the son who purchases the property has siblings who do not believe in the sale, in the sense that it is real, after the death of the father, the mother or both, they can proceed to sue in simulation to the brother who transferred the property to his name in order for it to return to the succession that will be distributed among all the heirs.
So, the sale of parents to children is completely legal, but it has certain formalities and disadvantages that in certain situations it is necessary to carefully evaluate whether or not it is convenient to carry it out and carry out the transfer process paying all taxes.
In case you want to do it anyway, the ideal is to seek advice from the beginning with a lawyer who knows the matter to save time and money in the procedure and that everything is done correctly.
