Alexander MaurerbauerJune 20, 2024
Buying property in the Dominican Republic
In the Dominican Republic, buying real estate property as a foreigner is straight forward. There are however a few things to consider before making a purchase.
Get clear about your goals
Why are you planning to buy property in the Dominican Republic in the first place? Here are a few options:
- Relocating to the Dominican Republic
- buying a second home / vacation home
- buying an investment property
Choose a property Type & Location
Depending on your goals, you might prefer a calm villa with a pool in the backcountry, or a beachfront condo with ocean views and a luxurious shared pool area. Just imagine a place where you'd feel comfortable. With our broad selection of properties, there's a high chance you'll find exactly what you're looking for!
The same can be said for locations. Punta Cana is the most well known area in the Dominican Republic. However, it can be rather crowded with other tourists, and the real estate market has mostly been bought up by large hotels and resorts.
The north coast of the Dominican Republic is still a bit less known, however in no way inferior. The Nature is more vivid, land and real estate is more affordable, and the potential Investment ROI is much higher.
Private or Business?
Property can be bought under your own name, or the name of a company based in the Dominican Republic.
Setting up such a company is straight forward, although it will require some additional efforts. We're happy to assist you here.
Visit the Dominican Republic
No matter if you're buying a property in the Dominican Republic as an investment, vacation use, or as a second home, some familiarity with the country is necessary.
Plan a trip to your target location and spend at least a week there. This will give you the chance to talk to local agents, get to know the surrounding area and check out properties in real life.
Get a local real estate attorney or professional real estate agency
When you've found the perfect deal, before taking any action, you must hire a local attorney to gather most of the necessary information about the property you want to buy. This includes:
- verifying the accuracy of the deeds
- figuring out whether the property is free of any title encumbrances
- prior knowledge of pertinent processes and services, such as: B. tax administration.
The seriousness of the lawyer determines how reliable the purchase will be.
Alternatively, choose a full service real estate agency that takes care of all important things around your purchase. With over two decades of experience in the Dominican Republic's real estate industry, Instyle Investments provides its clients with a reputable legal firm to successfully complete a purchase without any unpleasant surprises.
Get in touch with us for more details.
Required steps to buy property
The purchase can be finalized if there are no issues with the property to be bought. The processes are streamlined, but trustworthy documentation is still required.
Both you and the vendor must meet the same requirements in order to receive the permit, and in the case of foreign buyers, the buyer simply needs to show identification in the form of a passport.
You'll now sign a purchase contract with a deposit equal to about 10% of the total amount after deciding on the property's price.
After that, you or your real estate agency select an on-site notary public to witness the transaction. You'll receive assistance from your attorney in drafting the purchase contract up until that point.
Typically, you're asked to deposit the money needed to buy the property into the notary's escrow account through a check or bank transfer.
After ownership of the property is determined, the seller receives the funds. Following the money transfer, you or your business receive title transfer and registration in the Dominican property registry.
Taxes
The following taxes and fees must be paid in order for the transfer of real estate to be registered with the registration of securities:
- Transfer tax - 3% of the sales price
- Property tax - 1% of the property's sales value
A clear process for the acquisition, transfer, and registration of real estate in the Dominican Republic is ensured by the recently passed Real Estate Registry Law. You can pay these fees with a certified check or a bank transfer.
Conclusion
In Summary, buying real estate in the Dominican Republic can be a breeze, even as a a foreigner. Just make sure to:
- Know in advance what you're trying to achieve
- Have your dream property in mind
- Have some knowledge about the country in general
- Hire a trustworthy attorney or professional real estate agency
If you're looking to buy property in the Dominican Republic, check out our Properties near Sosua Beach or take a look at our most recent Listings. If you still have open questions feel free to contact us or check out our FAQ.
