Buying Property in the Dominican Republic
An Undiscovered Paradise
The Dominican Republic is largely an undiscovered paradise. Although the first 60 feet of coastline is restricted due to Maritime Zone laws, property throughout this beautiful country is relatively easy to purchase and enjoy.
Buying Property in the Dominican Republic
The purchasing process in the Dominican Republic is similar to that in Central American Countries. We highly recommend working with a real estate agent and Lawyer to help you through the process. We can provide an introduction to a well-qualified and reputable attorney.
The purchasing process is slightly different in the Dominican Republic from the U.S. Before making a written offer on the property, the parties must first reach a verbal agreement on the price. Once a price has been agreed upon, a binding “Promise of Sale” (also known as a “Contract of Sale” or “Option to Purchase”) is prepared by the Lawyer.
Finally, the Contract of Sale and Certificate of Title are taken to the nearest IRS office for payment of taxes, then on to the Title Registry Office where a new title is issued to the buyer. Your realtor and attorney will guide you throughout this process.
How Do We Charge?
Here’s the best part. Our services to buyers are FREE! Like most real estate transactions, our fees are always paid by the sellers and developers. We provide information and assistance in purchasing a Juan Dolio home to you, the buyer, at no cost to you.
Furthermore, you should know that THE PRICE IS ALWAYS THE SAME whether you utilize a real estate broker’s services or buy directly from the developer. The prices are set in advance, are the same for everyone, and are generally non-negotiable.
Due Diligence
It is the job of your Lawyer to perform due diligence on your property. Why? You’ll want to make sure the former owners have clear title on the property,that there are no outstanding debts or liens and that you’ll be free to enjoy your home in the Dominican Republic.
A due diligence inspection includes:
- Title search to ensure there are no liens or encumbrances on the property
- Property survey check
- Inspection of improvements to ensure any plans to improve the property or any improvements made to it are up to date
- Permits to ensure the property you wish to purchase can be used the way you want. You don’t want to buy property governed by Maritime Zone laws without the proper permit.
- Possession to ensure no one else is living there
- Employees: If the seller hasn’t paid up his employees’ salaries, you could end up with that expense.
- That the property has a deslinde.
Taxes and Closing Costs
You will be required to pay income tax on any profit you make from your investment. You will also be expected to pay 5% of the taxes and closing costs. Those costs include a transfer tax of 3.1%, document taxes, special stamps for registration and tips.
Taxes are paid based on the market value of the property as determined by the tax authorities, not on the price of purchase stated in the deed of sale. Normally the market value is less than the purchase price.
| Transaction Costs | ||
| Who Pays? | ||
| Transfer Tax | 3.10% | Buyer |
| Notary Fee | 0.25% – 1% | Buyer |
| Document Stamp Tax | 0.10% | Buyer |
| Juan Dolio Real Estate (Fee) | 5% – 7% | Seller |
Establishing Residency in the Dominican Republic
It’s easy to get a residency visa for the Dominican Republic. You need only obtain a provisional residency visa at your closest Dominican consulate, then a permanent residency card at the General Immigration office in Santo Domingo. Your application will be expedited if you purchase property worth $200,000 or more.
Need More Information?
If you have more questions about purchasing property in the Dominican Republic, don’t hesitate to contact us. We have the knowledge, the contacts and the integrity to answer all your questions and to help you find the vacation home that is right for you.