General Information for Foreigners Buying Real Estate in the Dominican Republic
The real estate market in the Dominican Republic is becoming a hot-spot for foreigners looking to make a sound investment in today’s turbulent times. The relatively stable economy of this beautiful island has lot to do with the tourism and the real estate arena. The variety of properties available in various locations at still affordable prices is a huge draw. Investors from countries like Canada, the United States and Australia are giving serious consideration to real estate in places like Punta Cana, San Domingo and Playa Dorada among others.
One thing a lot of foreigners aren’t aware of is the ease with which it is possible to buy a property here. The Dominican Republic’s non-restrictive policy towards foreign investors is a major plus point. There are hardly any restrictions on foreign nationals when it comes to purchasing and owning real estate here. The entire process is pretty much hassle free, making it a convenient investment option unlike other countries in the Caribbean. Not only are the procedures straightforward but foreign nationals have the same rights and obligations as the nation’s citizens, when it comes to buying property in the Dominican Republic. You can legally own real estate here even if you are not a resident.
Please note that the buying and selling process works a little differently here and this is the first major step. In the Dominican Republic the buyer does not tender a written offer to the seller of the property and so forth. In fact the buyer and seller will need to come to a verbal agreement. The buyer and seller then need to sign a Contract of Sale or Promise of Sale with an authorized notary present who will authenticate the said contract. This contract has to contain all the legalities of the sale, complete description and information of the property, the price and the conditions. The Dominican Republic notaries are required to have a law degree.
This authenticated contract is then taken to the Internal Revenue office for the payment of taxes applicable to the deal. Another big advantage for buyers here is that there is no annual property tax levied on properties worth less than five million pesos! Once you are done with preliminary stage the Contract of Sale and Title are deposited at the appropriate local Dominican Republic Title Registry office so that the sale can be legally recorded and so forth. The wait to receive the new Certificate of Title in the name of the buyer lasts anywhere from days to a few months.
Like a real estate deal anywhere in the world foreigners should take the time to examine the rules and regulations and hire reputable legal help. Buying real estate in the Dominican Republic whether it’s a plot of land or a beachfront home need not be far-fetched dream anymore!