Laws and Regulations
involving Real Estate in Dominican Republic
Estate in the Dominican Republic has become one of the best areas to
invest in the past several years, because of its great potential in
investment returns ( less affected by economic
cycles than most countries ). Foreigners have the
same rights as locals when it comes to owning property in the island
( no restrictions ).
This open policy has made the
island an investor's paradise, with millions of dollars invested
each year in new resort and residential developments across the
Buying property in this Caribbean
island is a simple process that will require the following:
should be appointed
ID such as a
passport ( local ID if you are a local citizen )
drafted by the attorney
Legal fees of
the attorney ( 1% of the purchase value )
fees 3% of the value
Registry Tax 2%
Stamp Tax 1.3%
After these steps are completed, a
customary 10-20% sales deposit is offered from the buyer along with
the Offer of Purchase contract. This legal document is prepared by
your attorney and has information about the property being
purchased, the offered price, buyers information
along with the financial conditions offered for the sale. Once
accepted by the seller, a promise of purchase contract is signed.
Your appointed attorney will also need to take the property through
the Due Diligence process. This process ascertains the current
legal status of the property.
Your attorney will take care of
getting everything in order for the remainder of the process. If you
would like to know more about the whole process, keep reading below.
Please remember that it is the attorney's job to deal with all the
small and big details, you will be asked for the basics as stated
above. Any property over US$170k will pay a 1% yearly tax of the
amount over the US$170k, this is partially avoided by many buyers
using a corporation set up.