The Dominican Republic is attracting more and more expatriates and real estate investors thanks to its pleasant climate, magnificent beaches and stable economy. If you are consideringbuying a home in the Dominican Republic, it’s essential to understand the ins and outs of the real estate purchase.
Here’s a comprehensive guide to help you through the process of buying real estate in the Dominican Republic.
Why buy property in the Dominican Republic?
Buying property in the Dominican Republic offers both personal and financial advantages. You can enjoy the sun, the beaches, the activities, and acquire the property of your dreams in an idyllic setting.
What’s more, renting out your property can generate additional passive income, thanks to the high demand for vacation homes in the area.
A profitable investment
Buying a house or apartment in the Dominican Republic can be an excellent investment for several reasons. Firstly, the country’s economy is stable, fostering a favorable business climate, including in the real estate sector. What’s more, the development of high-end tourism is opening up new investment opportunities, particularly in the construction of luxury homes for holidaymakers.
What is the procedure for buying a home in the Dominican Republic?
If you want to buy a home in the Dominican Republic, you must first distinguish between buying off-plan and buying a property that is already available.
For off-plan purchases, once you’ve paid your share and signed your contract, you’ll pay the balance of your initial investment during construction in instalments before completing your purchase on delivery of the keys (financing available even for foreigners).
For purchases of already-built properties, the payment is made up of two parts: the separation (between 20% and 40%) and the balance, which can be financed by a bank.
Signing the sales contract: an informed commitment
The contract of sale, drawn up by a notary, formalizes the terms of the transaction: purchase price, payment terms, precise characteristics of the property, etc. It’s crucial that your lawyer carefully examine this contract to ensure that it protects your interests, is fair to both parties and complies with Dominican law. Once the contract is signed, you’ll pay a deposit, usually between 10% and 20% of the purchase price.
As a real estate agency, we help you every step of the way. From putting you in touch with professionals you can trust, to moving in and signing the contract. Don’t hesitate to contact our team for 100% personalized service.
How do I get a loan from a local bank?
If you need a loan to buy property in the Dominican Republic, we recommend working with local banks. These banks offer mortgages at competitive interest rates for foreign citizens. Make sure you have all the necessary documents, such as your passport and tax returns, to facilitate the loan application process.
Costs not to be overlooked when buying a home in the Dominican Republic
Beyond the initial purchase price, it’s important to take into account the ancillary costs associated with buying a home in the Dominican Republic.
Here are some of the additional costs to expect:
- Lawyer’s fees (including notary):
Generally between 0.25% and 1% of the property price. These fees cover the notary’s services in drawing up the sales contract, registering the property and other administrative procedures.
They are generally charged to the buyer.
2. Title transfer tax:
It amounts to 3% of the sale price if you do not benefit from an exemption, such as the Confotur law. It is also the responsibility of the buyer, and must be paid within 6 months of handover.
In the Dominican Republic, the buyer does not pay the real estate agency. The latter’s commission is paid by the seller.
In short, you can expect to pay between 3.25 and 4% of the purchase price if you don’t benefit from a tax exemption.
Can you buy a house with a company?
When buying a house in the Dominican Republic, you have the choice of buying it in your own name or in the name of a company. Each option has its advantages and disadvantages in terms of costs and legal protection. It is advisable to consult a local lawyer to determine the best option for your personal situation and investment objectives.
Where is the best place to buy property in the Dominican Republic?
The best place to buy property in the Dominican Republic depends on your investment objectives and lifestyle. Seaside towns like Las Terrenas and Bayahibe offer excellent investment opportunities in the real estate sector, while cities like Punta Cana are ideal for those seeking an urban lifestyle.
Interested in buying a home in the Dominican Republic?
Has this guide enlightened you on the key steps to buying a home in the Dominican Republic?
Ready to make your dream come true with Perez Real Estate
Perez Real Estate accompanies you in your search for a home in the Dominican Republic and guides you serenely towards your new home in the sun.
For a serene acquisition, it is essential to refer to experts in the field. Together, we clearly define your needs and desires: number of rooms, location, budget, etc.
Our experts will help you master the legal and administrative aspects: procedures, taxes, etc., and put you in touch with trusted partners to support you at every stage: personalized research, administrative procedures, legal advice…
In addition to assisting you with your search and administrative procedures, Perez Real Estate also offers :
Personalized advice for a successful real estate investme
- A wide choice of homes to meet your needs
- Rigorous monitoring throughout the purchasing process
- Support for successful integration in the Dominican Republic.
Don’t wait any longer, contact us today! Together, we’ll find your haven in the Dominican Republic.
