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FAQ’S - FREQUENTLY ASKED QUESTIONS ABOUT
BUYING
REAL ESTATE IN THE DOMINICAN REPUBLIC
Do foreigners need to be residents of the Dominican
Republic to buy properties?
There are no restrictions for foreigners to buy properties in the Dominican Republic. You
receive a freehold title in your name, and have the same rights as any landowner
in the Dominican Republic. Foreigners do not need to be residents (although
there are govt. incentives for doing so). Because this area has grown so
fast, it may take up to 18 months to receive an actual title. Instead,
your legalized Purchase Agreement is honored as proof of ownership until your
actual individual title is processed and received.
What can I expect to pay in Property Taxes?
This is one of the best incentives offered by the Dominican Government to foreign
investors. Tax Abatement law #151 basically states, that you are exempt
from paying property taxes on the first $150,000 purchase, and any remaining
tax is at approximately 1% on the balance each year for the length of ownership. I.e.
if you purchased a $200,000 qualifying condo, there is no property tax on the
first $150,000; the remaining $50,000 is taxed at only 1% per year. This
is the general description, properties must have a qualifying status, and each
property may have some variations. Your contracted Dominican Attorney
can explain your particular situation in more detail. You may even qualify
for the retirement incentive, with would bring your property tax rate to only
half (0.5%). Please send a request for this large pdf document.
What is the procedure for buying properties
in the Dominican Republic?
First, be sure that the owner or realtor from whom you are buying
is a trustworthy person or entity. It is necessary
to use an attorney to purchase property; and again, be sure that
this is a reliable and honest person. RELIABLE REALTY DR
can provide reputable attorneys, Title Companies, Insurance
providers and other legal services needed for a smooth transaction.
What taxes and fees are involved when acquiring property
in the Dominican Republic?
There is a one time transfer tax of 3.5%. Transfer taxes are paid
based on the assessed value of the property as determined by
the tax authorities, so it is typically less than the purchase price. Lawyer
fees are approximately 1.5% – 2% of the purchase price of the property. More,
if placing the property into a Dominican Corporation name.
Is there title insurance available
in the Dominican Republic?
Yes, Stewart Title, a North American company has been established
in the country for many years, providing dependable title insurance
and escrow services.
What about inheriting real estate by foreigners?
There are no restrictions on foreigners inheriting title to real
property in the Dominican Republic. Inheritance taxes have
been recently lowered to 3% of the appraised value of the estate. If
the beneficiary resides outside the Dominican Republic, inheritance
taxes are 4.5%
Is it easy to become a resident of the Dominican
Republic?
Yes, the process includes some minor medical tests done in Santo Domingo to assure
you do not have aids, Hepatitis, and are free of drugs. Also, you will
need to provide an original Birth Certificate, original Marriage Certificate,
physical (colored) copies of your original passport, and recently a clean criminal
background check from your original country (State or Province) of origin and
established residence. You will also need 8 photo’s 2x2, which are taken
and paid for in Santo Domingo. In some cases, a bank or professional reference
letter, and/ or proof of any investment made in this country.
Can I retain citizenship in my
home country & the Dominican
Republic?
Absolutely! You can have dual citizenship with little or no restrictions
(check with your home country).
For More Legal Detailed Information click here
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