There are no restrictions for the purchase of Real Estate for foreigners in the Dominican Republic. The right to own private property is guaranteed and recognized by the Dominican Government. Any individual or corporation, local or foreign, is allowed to make a real estate transaction. Traditionally there are two ways to do it, as an individual or through a business entity.
Generally a 10% initial is transferred to the trust account of a notary or attorney of your choice, until all the paperwork is checked for debts, unpaid taxes, and until the authentication certificate has been delivered. This may take between 2 weeks and several months, depending on the complexity of the transaction. At the same time that all the paperwork is done and signed by both parties, the funds in the trust account of your lawyer or notary are transferred to the seller to complete the transaction and transfer the title to the name of the buyer or company.
Many properties are part of company stocks, which makes it easy and cost efficient to transfer the shares to a new owner. When the paperwork is 100% completed and in order, it is when the rest of the payment will have to be made and the titles or company shares will be delivered to the hands of the new owners. This will assure you that the payment will only be made at the same time that you will have received 100% for what you have paid.
We recommend using a lawyer and notary certified and experienced in any real estate transaction to ensure that the transaction is quick and effective.
The attorney’s fee is usually 1% of the total price of your property, in higher amounts the fee can be negotiated.
We recommend using land surveyors in any real estate transaction, in which the size of the land is relevant to your purchase.
The rumor that the Dominican Republic is free of property taxes does not apply completely. You will not have to pay taxes if the property is valued at less than 5 million pesos by the government. (Approx 150,000 US).
But do not worry if you are looking for a tax-free paradise, as there are many opportunities at 5 million pesos or less.
As in any country the tax has to be paid, determined by the value of the property. If everyone does it is another question, because the government still lacks the resources to collect these taxes, but you should know that you can only sell your property if all these taxes are paid daily. Besides these taxes are not the sum of what is paid in Europe or the United States and the best way to see it is that you are contributing to the development of the Dominican Republic.
The real estate transfer is subject to the following payments and taxes, these numbers are only an estimate and may vary depending on the location and type of property.
3% transfer tax (law # 288-03)
3% tax for document stamps (law # 835-45) RDS 232 for the first 20,000 pesos and 13 for every 1000 remaining.
2% registration tax (law # 108-45) applicable only in properties valued at 5 million pesos and above, which will be made in some period in the near future, on the creation of the indemnity fund established by law .
Minor expenses such as certified checks, stamps and tips in the register
Property and possession information:
In the Dominican Republic, information on possession of property is kept in the registry office, office of the secretary of titles or court. This information is publicly accessible at the registrar’s office, office of the secretary of titles or court. It has to be searched by hand because the Dominican Republic does not yet have a record of computerized registration of titles.
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Financing and loans:
Long-term residential and commercial loans are available. Short-term personal loans are also available, but with high interest rates. Please check our financing section for more information.
Land use regulations:
There are controls on how a plot could be used; also subdivision codes and construction regulations apply. There is a building code in the Dominican Republic. The use or development could be emulated according to location. It is very important to examine environmental regulations, urban planning, public establishments or other municipal regulations. It is also not allowed to build in less than 60 meters from the ocean.
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