Buying Real Estate in Dominican Republic

Do you want to Buy a Property?

Buying Real Estate in Dominican Republic? Go to the “SEARCH & FIND YOUR PROPERTY” tool and find within our Listings your ideal property. Search accordingly to your needs and criteria and look for the location of your preference. Also search by prices, by property type, number of bedrooms, number of bathrooms and even plot or land size. If you need further assistance from us, please fill out the “REQUEST FORM FOR BUYERS” provided in this page or CLICK on CONTACT US.

Do you need to talk to a Local Agent / Realtor?

Ask for Brokerage Services!! Find qualified Agents near by your local area or region of interest or search for Real Estate Agencies nationwide with the experience and vision that best suits your interests. Search through our Agents’ Directory and contact your local Agent.

What type of Real Estate Investment you can get in the Dominican Republic?

  • Buy your 1st Home where you can raise your family with all the comfort and security they need. You need to find properties located within Private Residentials, New Housing Project or in a secured Gated Community that offers access control and tranquility.
  • Buy a Land / Plot or a Farm where you can build your dreamed home. Find here the idylic location and ask for references to hire a trustworthy developer and engineer that will offer a guarantee on his job and projects.
  • Buy a 2nd Home or Vacation Home located within a Resort Style Community or near by a Tourist Area where you can spend the weekends and holidays with family and friends. This type of investments can generate a monthly profit and provide a return on your investment in the long term.
  • Buy a Retirement Home located in a Private Community with all the comfort and services for your tranquility and enjoyment. If you are a Foreigner or Exiled Dominican that wants to invest in a country where you can have a change of life style, very laid back, in a warm weather, surrounded by friendly locals and also where you can bring your family; then you will find many options in this country.
  • Buy a Commercial Property in the Dominican Republic to strategically locate your business. You are an Investor looking for offshore advantages and Business Opportunities! Ask for advice and we can guide you through this process.

Dominican Republic is the country that you look for!

This country has developed and growth rapidly in the last 20 years. The government invested a large amount in promoting the country’s tourism. Many important hotel chains have invested their capital here and created huge marketing campaigns to attract people all over the world.

Local and International Developers have put their eyes in the Dominican Republic as the ideal place to develop projects with concept like gated communities with facilities and services oriented to young couples, families and exile Dominicans that want to retire back to their land and close to their roots and families.

Also, the newest trend in the Dominican Republic has been to invest in Luxury Private Residential and / or Resort Style Projects within Tourist Areas. You can buy or separate with a deposit percentage in the pre-construction or pre-sale phase and get a significant discount. Most developers offer financing and guarantees. Investors should check the company credentials and their background before making any decision. One of the attractions of this type of property investment is the opportunity to re-sell or get a return on your investment with the option of renting it to tourist while owners are not there. Most projects offer Property Management Services to owners to release them from that responsibility and worries. There are tax exceptions for some real estate investments in the country making this country a real attraction for investors and foreigners.

Dominican Republic is a virgin paradise with miles and miles of land. Here you can buy a farm or ranch or a small lot to build your own dreamed property. Find the right spot in the countryside or close to the beach, up in the mountains or beachfront! Is a decision that will change your life style.

Tips for Buyers:

  • Find a Realtor / Agent with experience in the area or region that you want and they will guide you and assist you through tha whole buying process.
  • You do not need to have a residence or to be a local partner to buy a property. You can buy as a private person, through the incorporation of a Dominican Company or use an Offshore Company.
  • Once you have put an offer to the seller, it is important to find a recommended Lawyer with experience in this type of legal affairs or ask your Real Estate Agent for references. The legal advisory will prepare the “Purchase Commitment Agreement to establish the terms and conditions of the sale. This should include a detailed description of all relevant aspects of trading, such as the description of the property, the sale price, the method of payment, warranties, causes resolution, etc. Sometimes sellers will also ask to use a legal advisory of his choice and then they will have to work in collaboration.
  • We recommend using an escrow accounts together with a trusted lawyer or a title guarantee company. Generally 10% down-payment is transferred to this account, until all the paperwork is reviewed in case of outstanding debts, unpaid taxes and until the certificate of authentication has been delivered. This may take from 2 weeks to several months, depending on the complexity of the transaction. While all this paperwork is done and signed by both parties, the funds in the trust account of a lawyer or notary will be transferred to the seller to complete the transaction and the transfer of the Title to the buyer’s name or company. The downpayment must be stated in the “Purchase Commitment Agreement” document and will be discounted from total sale price at the time of final payment and sale closure. These funds must be returned to you if there are any inconvenients with the property and the purchase is not going to proceed. There are also other ways to assure your initial investment or downpayment…always ask your lawyer and/or agent about your options.
  • Before signing any sale contract or paying any money to seller, make sure that your legal Advisory must complete a “deep” local Title checkup.
  • If you are buying a property for renovation or land for building a new home: The cheapest way to build is to find a good local builder with a lot of references, check their previous works and talk to their clients or home owners.
    • If you are buying a piece of land you must use an independent surveyor to re-measure the land and confirm the position (Agents know which one to use in the area). Do NOT buy any land with squatters on it and make sure that no squatters are moving into your land as it’s impossible to remove them later on.
    • How is land measured in the Dominican Republic? 1 M sq = 10.795 sq ft / 1 Tarea =628.8 m2 / 6.433 Tareas=1 acre / 15.89 Tareas= 1 Hectare / 1 Hectare = 2.47 acres / 1acre=43, 560 sq ft.
    • Not recommended to pay any money in advance to builders or for building materials. The best way is to use a trusted lawyer to prepare a contract with a well known and trusted building company. There you can stipulate payments, penalties and warranty period.
  • Asking for Mortgage Loan:
    • Interest rates varies depending on each Bank policies. The average rate in DR is 9% to 12% (APR).
    • These are the main banking institutions in the country: Banco Popular Dominicano, Banco Leon, BanReservas, Banco del Progreso, Scotiabank, and other local financial institutions.
    • The initial for the loan usually is 20-30% of the property sale price. The mortgages terms depends on the type of property: land / plots are between 5 to 10 years; and dwellings: 10 to 30 years depending on bank policy.
    • Foreigners asking for a mortgage loan from a local financial institution will be most likely asked to show a Dominican Residency card and Passport, Social Security, Drivers Licence, Bank References and Income Tax reports. Also, they will check your credit background and history.
    • Financial institutions have established numerous conditions before granting a loan, like a deep title checkup or a title insurance to protect against title errors, property inspections, and an appraisal to assure that the property has sufficient value to secure the loan. Also, the buyer will have to prove his or her solvency or creditworthiness to borrow.
    • In the Dominican Republic most financial institutions will only lend the 80% (maximum) of the property price and buyers will need to disburse 20% of the value plus the closing costs.
  • To process the Dominican Residency: You can first ask for a Temporary Residence or directly apply for a Permanent Residence, that will depend on each particular case. Also, there are other types of Permanent Residences:
    • Residence for Retiree: Only for retired foreigners with a monthly pension equal or higher than US$1,500.00.
    • Residence for Renters: When the foreigner has permanent and stable remittances received in the Dominican Republic but originating abroad.
    • Residence for Investors: Only when you can prove of companies established in Dominican Republic who received a contribution to capital from abroad or in the case of investments in financial instruments through Banks in this country. For detail information click here: http://www.migracion.gob.do/

Taxes and Fees when Buying a Property:

1. “Impuesto de Transferencia de Bienes Inmueble” – 3% of the sale price, a requirement to record the transaction in the Registry of Deeds plus the cost of stamps, totaling about 4.5% of property valueBuyer will pay.

2. If you have chosen to finance the property with any bank, the average tax to be paid is 2% of the mortgage amount – Buyer will pay.

3. “IVSS” or “IPI” Property Tax – IRS requires property owners an annual tax payment for Real Estates, Luxury Housing and Empty City Lots that are worth more than RD$7,138,384.80 (Aprox. US$147,000.00). The “IPI” (Impuesto al Patrimonio Inmobiliario) Tax Rate is 1% of the excess of the value of the property in respect of RD$7,138,384.80 mentioned. Go to the Internal Revenue local office “Dirección General de Impuestos Internos (DGII)” with the Certificate of Title to find out how much the property will pay or if is tax exempt – Seller must pay off the outstanding tax debts / Buyer will pay after acquisition, if applies.

4. Lawyer Fees are usually 1% of total sale.– Buyer will pay.

5. Realtor / Agents Sale Commissions are usually 5% to 10% of total sale.– Sellers will pay.

Who Pays What?

Special arrangements between seller and buyer are also a common practice in the Dominican Republic and should be stipulate in the “purchase commitment agreement”. There are no laws regulating this in the country, just the common practice (read above).

If you need further assistance, please Contact us!