FAQs

The payment plan for an off-plan property depends on the developer, but it typically consists of four main stages:

1️⃣ Reservation – A deposit of $1,000 to $5,000 USD is required to secure the property.

2️⃣ Initial payment completion – You must complete 10% to 20% of the total price, usually within 30 days of reservation. This is when the purchase contract is signed.

3️⃣ Payments during construction – The remaining balance is divided into quarterly payments or payments based on construction milestones agreed upon with the developer.

4️⃣ Final payment upon key handover – The outstanding balance is paid when the property is delivered and keys are handed over.

The most common payment structure is 20% – 40% – 40%, though this may vary depending on the project and developer.

If you do not reside in the Dominican Republic, your property can be managed by specialized agencies.

We connect you with trusted partner agencies that handle all aspects of rental and property maintenance, including:

✔ Short- and long-term rental management
✔ Property maintenance and upkeep
✔ Tenant management and payment collection
✔ Concierge services for guests or renters

With these solutions, you can maximize your investment hassle-free, without worrying about the daily management of your property.

The Fly & Buy program is an exclusive offer designed for potential buyers looking to invest in the Dominican Republic. It allows clients to receive a partial refund of their travel expenses when they complete the purchase of a property with Perez Real Estate.

The refund ranges between $1,200 and $2,000 USD, depending on the purchase amount. This reimbursement is applied at the time of signing the purchase contract, enabling buyers to visit the country and explore their future property with peace of mind.

This program is a great benefit for foreign investors who want to confirm their choice before making a final decision.

Investing in real estate in the Dominican Republic offers several notable tax advantages for foreign investors. Here are the key benefits to consider:

1. Exemption from Property Transfer Tax

When purchasing your first property, you may qualify for an exemption from real estate transfer tax, which is normally 3% of the property’s value.
(republique-dominicaine.net)

2. Reduction of Annual Property Tax (IPI)

Investors under the Residency by Investment program can receive a 50% reduction on the annual property tax (IPI) applied to the portion of the estate exceeding a certain value threshold.
(republique-dominicaine.net)

3. Reduced Mortgage Fees

If you obtain a mortgage loan from a recognized financial institution, you may benefit from a 50% reduction in mortgage registration fees, lowering the cost from 2% to 1%.
(republique-dominicaine.net)

4. Exemption from Tax on Foreign Income

Foreign residents may be exempt from paying income tax on foreign-earned pensions or retirement income, subject to specific conditions.
(republique-dominicaine.net)

5. Exemption from Import Duties on Personal Belongings

Foreign investors may qualify for duty-free importation of their household goods and personal belongings.
(republique-dominicaine.net)

In the Dominican Republic, purchasing and owning real estate comes with several taxes and fiscal obligations. Here is an overview of the main real estate taxes:

1. Property Transfer Tax

When purchasing a property, a 3% transfer tax is applied to the property’s market value, as assessed by the General Directorate of Internal Taxes (DGII). This tax must be paid by the buyer within six months of signing the sale deed.
(expat.com)

2. Annual Property Tax (IPI – Impuesto sobre la Propiedad Inmobiliaria)

Property owners are subject to a 1% annual property tax on the total value of their properties, if the value exceeds a threshold set by tax authorities. Properties below this threshold are exempt. This threshold is periodically adjusted to account for inflation.
(expat.com)

3. IPI Exemptions

Certain properties qualify for exemptions from the annual property tax:

• Agricultural properties: Farms and agricultural land are generally exempt from IPI.
• Senior homeowners: Owners aged 65 or older who have owned a single property for more than 15 years are exempt from this tax.

4. Value-Added Tax (ITBIS – Impuesto sobre Transferencias de Bienes Industrializados y Servicios)

The Dominican Republic applies an 18% VAT tax (ITBIS) on goods and services. While this tax does not apply to most real estate transactions, it may be included in some construction-related services. Basic necessities, such as medicines and certain food products, are exempt.
(ufe.org)

5. Inheritance Tax

If a property is transferred through inheritance, an inheritance tax of 3% is applied to the estate’s value after deductions. However, for non-resident foreigners, this tax may increase to 4.5%.
(republique-dominicaine.net)

Yes, as a foreign property owner in the Dominican Republic, you have full rights to rent out your property. Dominican law does not differentiate between citizens and foreigners regarding property ownership and rental rights.

Key Considerations:

• Legal Compliance: Ensure that your rental agreement complies with local laws. It is recommended to consult a real estate attorney to draft or review the contract.
• Tax Obligations: Rental income is subject to taxation in the Dominican Republic. You must declare your earnings and pay applicable taxes to avoid penalties.
• Property Management: If you are not a permanent resident or do not live in the Dominican Republic, hiring a local property management company can help with tenant relations and day-to-day management.

In summary, renting out your property in the Dominican Republic as a foreigner is entirely possible, provided that you comply with local regulations and properly manage the legal and tax aspects.

Purchasing an off-plan property in the Dominican Republic comes with several legal guarantees and protections for buyers. Here are the key safeguards available to you:

1. Legal Warranty on New Constructions

According to Dominican law, new constructions come with a one-year warranty. This means that if any defects or structural issues arise within the first year after delivery, the developer is legally responsible for fixing them.

2. Secure Property Registration System

The Dominican Republic uses the Torrens system for property registration, ensuring the validity of property titles. Before a property is sold, a judicial procedure called “saneamiento” is conducted to clear any outstanding legal claims, guaranteeing that the property is free from disputes.

3. Promise of Sale Contract

Most real estate transactions start with the signing of a Promise of Sale contract. This legally binding document, signed in the presence of a notary, outlines the general conditions of the sale and protects both the buyer and the seller.

4. Title Verification and Legal Assistance

It is highly recommended to hire a real estate lawyer to verify the legitimacy of property titles and ensure the property is free from encumbrances or legal disputes. This step provides extra security for your investment.

5. Tax Exemptions for Foreign Investors

The Dominican Republic offers tax incentives to foreign investors, including property tax reductions and exemptions on interest income. These benefits enhance the security and attractiveness of your investment.
(expat.com)

6. Importance of the Authentic Sale Deed

When purchasing a property, it is crucial to sign an authentic sale deed before a notary public. This official document legally confirms your ownership and details the characteristics of the property, ensuring full legal recognition of your purchase.
(republique-dominicaine.net)

In summary, buying an off-plan property in the Dominican Republic is backed by strong legal protections and secure procedures, ensuring the safety of your investment.

Yes, as a foreigner, it is possible to obtain a mortgage loan in the Dominican Republic, but conditions vary depending on the bank and your country of origin. Here are some key points to consider:

1. Banks offering mortgages to foreigners:

• Scotiabank: This institution provides mortgage loans to foreigners, particularly to U.S. and Canadian citizens. Loans are typically issued in U.S. dollars with competitive terms.
• Banco Popular: Another option offering mortgage loans to foreigners with competitive interest rates.

2. General Conditions:

• Loan Amount: Foreigners can typically finance 50% to 60% of the property purchase price.
• Loan Term: Mortgages in the Dominican Republic usually have a maximum term of 15 years.
• Interest Rates: Rates vary depending on the bank and currency.
  • U.S. dollar loans: Approximately 8% to 9% interest rates.
  • Dominican peso loans: Can reach 13% to 14%.

3. Application Process:

• Required Documentation: Banks typically request proof of income, credit verification, and other relevant documents.
• Processing Time: The timeline varies:
  • Pre-approval: Can take 1 to 2 weeks.
  • Final approval: Usually takes around 4 additional weeks.

4. Specific Considerations:

• European Citizens: Financing may be more challenging for European investors, as Dominican banks primarily cater to U.S. and Canadian clients.

In summary, while foreigners can obtain mortgage loans in the Dominican Republic, it is important to consult local banks for specific conditions and prepare all necessary documents to facilitate the process.

Yes, as an investor or retiree, you can reside in the Dominican Republic by obtaining a visa suited to your situation. Here are the main options available:

1. Investor Visa
This visa is designed for foreign nationals who make a significant investment in the Dominican Republic. Requirements include:

• Minimum investment amount: At least USD 200,000 in real estate, local businesses, or other approved sectors.
• Application process: You must first obtain a residence visa from the Dominican consulate in your home country. Upon arrival, you need to finalize your residency status with the General Directorate of Migration to receive permanent residence.

2. Retiree Visa (Pensionado)
This visa is intended for individuals receiving a retirement pension who wish to settle in the Dominican Republic. The requirements are:

• Minimum income: A monthly pension of at least USD 1,500. If you have dependents, an additional USD 250 per person is required.
• Required documentation: A medical certificate, a clean criminal record certificate, proof of income, and other documents required by Dominican authorities.
• Benefits: Tax exemptions on pension income, tax-free transfer of personal belongings, and other fiscal advantages.

3. Rentista Visa (Passive Income Visa)
This visa is for individuals with passive income from investments, rental properties, or other sources. Requirements include:

• Minimum income: At least USD 2,000 per month from rental properties, financial investments, or other qualifying assets.
• Application process: Similar to other visas, it requires an initial application at the Dominican consulate, followed by residency formalization in the country.

General Procedure for Obtaining Residency:

1. Visa application: Submit a request at the Dominican consulate in your home country, along with required documents (valid passport, medical certificates, proof of income, etc.).
2. Entry into the Dominican Republic: Once your visa is issued, you must enter the country within 60 days of its approval.
3. Residency finalization: After arrival, register with the General Directorate of Migration to complete your residency process.

In summary, the Dominican Republic offers attractive residency options for both investors and retirees, with clear procedures and notable tax benefits.

As a foreign investor in the Dominican Republic, you benefit from strong legal protections equivalent to those granted to local investors. Here are the main legal guarantees available to you:

1. Equal treatment and legal protection
The Foreign Investment Law 16-95, enacted on November 20, 1995, ensures that foreign investors receive the same rights and legal protections as local investors. This law removed previous restrictions, allowing foreign capital to enter most economic sectors, except those related to national security.

2. Free transfer of capital and profits
Foreign investors can repatriate their capital and profits without prior government approval. This includes transferring dividends, interests, and invested capital abroad, ensuring financial liquidity and flexibility.

3. Access to tax incentives and special programs
The Dominican Republic offers various tax incentives to attract foreign investment, particularly in tourism, renewable energy, and free trade zones. For example, the Tourism Incentive Law 158-01 grants significant tax exemptions for approved projects, boosting the tourism sector.

4. International agreements and economic integration
The country is a signatory of several free trade agreements, including DR-CAFTA (the Dominican Republic-Central America Free Trade Agreement with the U.S.) and the Economic Partnership Agreement with the European Union. These agreements facilitate trade and provide additional legal security for foreign investors.

5. Institutional support for investors
The Center for Export and Investment of the Dominican Republic (CEI-RD) is a government agency created to assist foreign investors. It provides guidance, information, and helps facilitate administrative procedures for setting up and operating businesses in the country.

6. Compliance with the Calvo Doctrine
The Dominican Republic adheres to the principles of the Calvo Doctrine, which states that foreigners must assert their rights and resolve disputes under local laws and jurisdictions, without intervention from their home governments. This ensures that foreign investors are subject to the same obligations and receive the same protections as Dominican citizens.

In summary, the Dominican Republic provides a favorable and transparent legal framework for foreign investors, ensuring strong protection of their rights and investments.

Yes, as a foreigner, you can buy property in the Dominican Republic. The country’s laws impose no restrictions on non-residents who wish to acquire real estate. (expat.com)

Foreigners enjoy the same property ownership rights as Dominican citizens. You do not need to be a resident to buy, sell, or own property in the Dominican Republic.

Basic Requirements for Foreigners Buying Property:

• Valid identification: Two forms of ID, including a passport.
• Client information form: This includes details such as owned properties in the home country, profession, age, and dependents.
• Proof of legal funds: Certified documents proving the legality of the money used for the purchase, such as an employment letter or business documentation.
• Financial records: Bank statements for the past three months and income tax returns for the past two years.
  

It is highly recommended to work with a local lawyer to ensure all legal requirements are met and conduct due diligence before purchasing.

In summary, the Dominican Republic provides a favorable environment for foreign investors looking to purchase real estate, with clear procedures and guaranteed property rights.

The CONFOTUR Law (Law No. 158-01) is a Dominican legislation aimed at promoting tourism development in underdeveloped or emerging areas of the country. It offers significant tax incentives to both local and foreign investors who develop, promote, or invest in tourism-related projects, including real estate.

The main benefits of the CONFOTUR Law include:

• Exemption from property transfer tax: Buyers are exempt from paying the 3% property transfer tax for properties covered under CONFOTUR.
• Exemption from annual property tax: Property owners benefit from a 1% annual property tax exemption for up to 15 years.
• Tax benefits for developers: Exemptions on income tax, import duties for materials and equipment, and other national and municipal taxes.

To enjoy these benefits, projects must be approved by the Tourism Promotion Council (CONFOTUR).

In summary, the CONFOTUR Law encourages tourism investment in the Dominican Republic by offering attractive tax incentives.