On Jan. 28, 2020, the municipality of Dorado approved Ordinance 49, levying a special tax on the sale or transfer of real estate property in Dorado valued at $1 million and above. The tax is applied on a gradual scale that starts at 1 percent of the value of the property between $1M and $5M; 0.75 percent on the value between $5M and $10M; and another 0.5 percent on the value between $10M and $20M.

The tax will apply to sales exchanges, transfers and involuntary transactions such as expropriations or forfeitures as long as there is the need for a public deed and a notary in the transaction. The ordinance also creates a special fund that the municipality can use for security, maintenance, education, sports activities, recreational and tourist areas, cultural, artistic and culinary activities, among others.

SOURCEThe Weekly Journal