How to Buy a property in the Dominican Republic?
The Dominican Republic and the development of the real estate sector
Because of special agreements between the Dominican Republic and many Western states, investment in the Dominican Republic offers extraordinary security. The code Napoleon (model of the codes of procedures in force in France), modified on very few aspects, governs all the Dominican legislation in this country characterized above all by its political and economic stability.
Thus, any acquisition, with national and international guarantees, for cadastral registrations, notarial deeds, title deeds, and other transfers to heirs, will take place in the tranquility of an attractive tax system, coupled with reduced procedural costs.
It is therefore logical that foreign establishments multiply on a geometric curve, meeting the legitimate expectations of an economy open to rapid and sustainable development. Protected and low-cost tax, your investment, with a guaranteed added value, will easily satisfy your expectations at any level.
Is it a good investment to buy a property in this beautiful island?
There are many reasons that may prompt the decision to buy a house in the Dominican Republic. The process of acquiring land or building property has been reduced to its simplest form to encourage purchases. But the most important reason is surely economic. Indeed, the country is in strong economic growth favouring an atmosphere conducive to business affecting all sectors, including real estate. Many expats chose to buy an apartment which they use a few months and rent out the rest of the year for profitable returns.
The development of tourism, which is one of the country's currency providers, is not outdone and the government is now focusing on high-end tourism. This form of tourism requires privative accommodation facilities away from busy hotels. The construction of luxurious villas is an ideal solution for people looking to invest, relax and enjoy an extra passive income. In the North of the island, in the village of Las Terrenas, an increasing number of real estate projects are being developed every year.
How to buy a house in Dominican Republic?
In the Dominican Republic, foreigners can easily acquire real estate, the future owners have the choice to buy this property in their name or on behalf of their company domiciled in the Dominican Republic. Whether for individual use during the holidays, or as a secondary home, or for a lucrative use, the purchase of a house in the Dominican Republic requires a minimum of knowledge.
Before any action is taken, a local lawyer must be employed to dig up the most information about the property to be purchased, such as verifying the accuracy of the deeds, or whether the property is cleared of all sorts of property loads. Knowledge of the procedures and services involved, such as the tax administration is a sine qua non.
The reliability of the purchase will depend on the seriousness of the lawyer. After more than 20 years of experience, our agency provide clients with a reliable lawyer firm to conclude a deal without bad surprises.
If the house to buy does not present any problem, the purchase can be concluded. Although simplified, procedures require the production of reliable documents. Already the conditions for granting are the same for both premises and for foreigners, the purchaser must simply carry a passport to establish his identity. After agreeing on the price of the property, a compromise of sale is signed between the two parties with a down payment of around 10% of the total amount.
Then, the transaction will take place in the presence of a local notary chosen by the purchaser, so far the purchaser must always rely on his lawyer who must help him in drawing up the sales contract.
Generally, the funds required to acquire the property are deposited by the buyer by bank transfer or by check to the notary's trust account. The funds are then forwarded to the seller once the title to the property is allocated. After the remittance of the funds, the title is transferred in the name of the buyer or the company and then registered in the Dominican title register.
The registration of the transfer of real property with the registration of the securities requires the payment of the following taxes and charges: * 3% of the sale price * 1% of the sale value of the property, (Constitution and cancellation of a mortgage, modification of title, duplicate). The new law of the real estate register guarantees a transparent system for the purchase, sale and registration of real estate in the Dominican Republic.
When title is established, it shall be registered with the notary. As in any purchase, there are transaction fees to be paid, it is necessary to count in 6 to 8% of the total amount. Payment of these fees can be made by bank transfer or by certified check. Click here to know more about the buying procedure and its details.
What are the interests of buying a house in Dominican Republic?
Interests are divided into two parts, either a personal interest or a commercial interest. As for personal interest, the beaches of the country will delight you. For those who can afford it, the construction of a luxury home on the Dominican residential neighbourhoods guarantees a dream accommodation.
It is also possible to take advantage by renting the property. And this is the second interest because the Dominican real estate sector is evolving; the real estate gains are constantly increasing, so if a property is destined only for a summer residence, the best way of profitability is to rent it out. And the Dominican government, aware of the investment that could be made by the luxury real estate sector, adopts a proactive policy by setting up areas of settlement for residential areas.
Request a Free Property Research
Thinking about buying a villa, apartment of land to build on in the Dominican Republic? Tell us what you are looking for and our agency will come back to you with a selection of properties corresponding to your demands.