Complete Guide to Buying Dominican Republic Real Estate
The popularity of the Dominican Republic as travel destination has been growing steadily over the last two centuries. Not only is the Dominican Republic the most popular island in the Caribbean, it’s one of the most popular vacation destinations in the world. This type of popularity brought increased interest in all types of real estate. Here’s a complete guide to buying Dominican Republic Real Estate.
Can Foreigners Own Real Estate Properties in the Dominican Republic?
While there’s ever growing interest in all aspects of real estate investments in the Dominican Republic, vacation properties are leading the way in terms of growth. People love the Dominican Republic and wish to visit the island for extended periods of time. Luckily, the Dominican Republic government makes it very easy for foreign nationals to own real estate in the country. In fact, there have been virtually no restrictions on real estate ownerships by foreigners for generations.
Sunset over Palm Trees in Punta Cana, Dominican Republic, Photo: siderean, Flickr
Guide to Investment Properties in The Dominican Republic
As mentioned above, Dominican Republic has been experiencing increased interest in property investments from foreigners. While tourism is still the primary form of revenue for the island, real estate market goes often hand in hand with tourism and has been steadily profitable not only for local operators, but also foreigners who previously invested in the real estate. Whether it’s rentals, buying and selling with profit, or building custom homes – foreign investors have been monetizing on massive interest in the Dominican Republic Real Estate for years.
Investment opportunities for foreigners don’t stop there. Many North Americans and Europeans have investments in hotels, apartment compounds, high end villas and whole upscale resorts. But the best thing is, that every real estate analyst predicts growing trends when it comes to foreign investments in the Dominican Republic real estate that will not stop growing for another decade.
Guide to Buying Residential Real Estate in The Dominican Republic
People who are looking to purchase residential real estate property in the Dominican Republic can be divided into three groups:
- Property Buyers Looking for a Vacation Home – maintaining a second home in the Dominican Republic is relatively easy and inexpensive making the island an ideal place for purchase of a vacation home
- Property Buyers Looking for an Investment – single family homes in the Dominican Republic are the most popular commodity among foreigners. If you are a foreigner looking for good investment, buying a residential property, remodeling it and then reselling to another foreigner for a profit is not a difficult task to achieve. Or you can opt for renting or leasing the property to foreigners who would like to enjoy an extended holiday in the Dominican Republic or are coming for an extended business trip.
- Property Buyers Looking for Retirement Home – Bingo! Dominican Republic offers ideal location in the tropics with nice weather all year round. It is relatively cheap to live there, people are friendly and nature is jaw-dropping. Countless foreigners look at the Dominican Republic all the time as their retirement location. They all will want to buy a house where to enjoy the best years of their life.
Guide to Buying Apartments in The Dominican Republic
Apartments are a very popular choice for real estate buyers. This trend is apparent and one can see many apartment buildings being built in major urban and commercial regions of the island. Sales of apartments as well as interest in rentals of one are growing exponentially, making investments in apartments particularly profitable. Whether you’re looking to resell or rent for ongoing passive income, apartments in the Dominican Republic appear to be a great real estate investment.
Apartment in Perla de Sosua - Dominican Republic, Photo: BluEyedA73, Flickr
Guide to Buying Vacation Properties
Being an island where many people like to go on vacation, it is expected that there would be the interest in vacation properties. Vacation Properties are what real estate purchasing foreigners buy the most of. Property values in the Dominican Republic continue to rise so most real estate analyst say it is sound to invest in one now. According to those analysts, the returns on such investment can be realized without major problems.
What Does it Take to Buy a Real Estate a Property in The Dominican Republic?
Purchasing real estate in the Dominican Republic is actually pretty easy. Foreign investors encounter little issues when buying properties there. Since there are no laws limiting foreign investments in the Dominican Republic real estate, the process is rather hassle free and has been for years.
The Dominican Republic Real Estate market is governed by the Land Registry Law of the Dominican Republic. Pursuant to this law, the execution of a contract between the buyer and seller is the first step in purchasing properties in the Dominican Republic. A contruct MUST be signed in front of a licensed notary public. This is the law, otherwise the contract is rendered invalid. Notary public licenses are only given to persons with a degree in Dominican Republic law. The contract outlines the general terms and conditions of the sale, such as:
- Description of the property being sold
- Agreed upon sales price
- Other relevant conditions relating to the transaction
A deposit of up to 10% of property’s total purchase price is expected to be posted by the buyer when contract is being signed.
Signed contract is then notarized by the notary public and taken to the Dominican Republic’s Internal Revenue Office. Internal Revenue Office decides on how much this transaction will incure in taxes payable to the government of the Dominican Republic (property tax). Tax must be paid before the transaction between buyer and seller is finalized.
Once all of the conditions set forth in the contract have been realized and financing arranged, the contract is taken to the Dominican Republic’s Title Registrar’s Office where it is filed with new certificate of title, designating the buyer as new owner of the property. Some Title Registrar’s Offices work fast and can issue the title in one day, others take a month.
It is always up to the buyer to do their due diligence and make sure the paperwork is dealt with as needed to avoid delays. It is also up to the buyer to conduct thorough check up on the property to avoid buying from a seller who does not have full title to the real estate in question. If a buyer fails to do their due diligence, all paperwork will be processed as requested, but a buyer may not be able to take full title of the property. It is recommended to always use a lawyer or solicitor who has the credentials to perform thorough title checks. Last thing you want is a bad real estate buying experience. If the transaction goes bad because you as a buyer have not done your due diligence, you could lose your deposit and end up with no property. That’s the way Dominican Real Estate laws are structured. It’s your job, do it right or get someone who can take care of it for you.
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