Before buying or selling property in the island of Dominican Republic, we suggest you read some of the requirements needed for a successful transaction. The process has been simplified over the years to allow foreign investors to become part of this fabulous Caribbean destination. Golden Treasures works with the best lawyers in the North Coast to bring you solid legal advise and services when you need it.
Laws and Regulations involving Real Estate in Dominican Republic
Real 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 island.
Buying property in this Caribbean island is a simple process that will require the following:
An attorney should be appointed
ID such as a passport ( local ID if you are a local citizen )
Legal contract drafted by the attorney
Legal fees of the attorney ( 1% of the purchase value )
Title transfer fees 3% of the value
Property 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, please contact us. 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.