Dominican Republic is one of the few Caribbean countries where acquiring property as a foreigner does not present any problems – to the contrary – this country welcomes foreign investment with many incentives in place by law
Attorneys must be secured here for all real estate transactions.
Here at Bavaro Condos 4U, we suggest the use of the best attorneys in the country, Guzman Arriza who have offices in the Business Center in the Palma Real Shopping Village in the heart of Bavaro, and we will be happy to introduce you to them, to have a free consultation and answer all your questions on the purchase and tax implications for you in your own country
No real estate agent can be a substitute for a professional attorney, who is qualified in international tax laws and the latest law changes pertaining to real estate in this country.
Once you have decided to go ahead, and purchase your dream home, then the process is very simple
Attorney fees vary between 1%-1.5% of the sales price
On top there will be a one time transfer tax which is approx 3%, which may qualify for part or full exemption depending on the status of the title
Drafting of contract for the purchase
Once you have negotiated the price for your new property, then you will require the services of your attorney to draft the “Promise of Sale” Contract
This contract will require a deposit to be paid (anything between 10-20% of the purchase price), which will be held in escrow with the attorney
Once the Promise of Sale has been signed, then your attorney will start the Due Dilligence to obtain proof that all taxes are up to date, community fees have been aid to date, and that there is no
incumbrance on the property. In this initial contract you will normally set a date in the future when you wish for the final closing transaction to take place
In order to finalize the sale, and have the Title Deed transferred in to your name, several documents are required
- Original Title Deed
- The final sales contract signed by both parties and notarized in the DR
- Copy of Passports of both the seller and the buyer
- Receipt of payment of the corresponding taxes or the tax exemption certificate
- In case of a Corporation, approval of sale of the property held this way
- Registry taxes aid to the corresponding Registry Office
- Payment of balance of sales price agreed
Once your attorney has deposited all the relevant paperwork in to the authorities here, it may take a few months before the new Title is issued in your name
It is difficult to estimate the length of time, but nowadays it is normal to be issued in a 2-3 month timescale
Top Reason to buy
- Punta Cana boasts some of the best real estate opportunities in the DR, if not most of the Caribbean
- Many incentives for foreign buyers, including no property taxes on the first $150.000 USD value of your property
- The DR is a mainly cash market, which means that you do not get foreclosures
- Hurricanes do not affect the Punta Cana area to the same degree you get in the rest of the islands. The nearest hurricane to date in Punta Cana was in 1964, which was 60 nautical miles out to sea. Do not get me wrong, when there is a Tropical Storm watch and a weak Hurricane passing by the area, you will see some high winds and a lot of rain. Similar to winter storms in your own country
- Cost of living. This country has some of the cheapest health and dental insurance you can find. Certain things like cars are extremely overpriced. Grocery shopping can be expensive in the tourist areas, although there are a couple of the large chain grocery stores within a 2-15 minute drive. You can get most products from the US here but at a premium
- The beaches, constantly voted in the top 10 in the world.
- Climate here is best for aches and pains and people who suffer from arthritis. The coldest it gets here is 60F, warm and sunny nearly every day, the average temperature of the ocean is 74F. June through October can be very humid.
- Travelling is easy with Punta Cana International Airport right on your doorstep, and just over 2 hours drive to Las Americas Airport in Santo Domingo. There are daily flights every day of the week to just about everywhere. Tourism in the past year has gone up by 8%. More and more there are more scheduled airlines flying in to Punta Cana to deal with its popularity