The process of buying property in the Dominican Republic

In recent years, the Caribbean real estate market has been developing especially actively, and one of the key leaders is the Dominican Republic. The variety of objects to buy, the high confidence of investors from all over the world and the active development of tourism are the key points that have contributed to the progress in the field of local housing. And in 2021, there was an unprecedented surge in sales of resort real estate.

Pros and cons of buying real estate in the Dominican Republic

In addition to the favorable climate that reigns here all year round, it is worth noting the good location of the island. The Dominican Republic is not far from North and South America, which is why there are so many foreigners from these regions. But there is also a large number of Russian-speaking – this has become possible thanks to good air communication with Europe and Russia.

Cost real estate in the Dominican Republic is steadily growing, so the purchase of housing here becomes a profitable investment. As for the transaction registration procedure itself, the purchase and sale of a real estate object in the Dominican Republic is quite simple: local laws are transparent and understandable, while foreigners can purchase any object on the same rights as a citizen of this country. It is also worth noting that taxes levied during real estate transactions are among the lowest in the world. And for those who invest in real estate in the Dominican Republic, there is a simplified system for obtaining a residence permit.

But buying housing in the country, it is worth understanding that although there are a sufficient number of flights from Russia, but the duration of the flight path across the ocean is about 12 hours, which may not suit everyone.

Features for foreigners: who and what objects can buy

It will be easy for any foreigner to buy real estate in the Dominican Republic (his rights in this matter are equated to the citizens of the island): only a passport will be needed from the documents. The only difference is that in order to conclude a transaction, it will be necessary to make an entry in the State Register of Rights to Purchase Real Estate by foreigners.

What to pay attention to when choosing an object

Dominicana is good because almost any corner of it is perfect for living, especially if you get your own car, so the field of choice increases significantly. Most often, foreigners purchase affordable houses and apartments in Bavaro, Cabarete, Punta Cana, Sosua. At the same time, you can not only profitably buy housing here, but also successfully rent it to tourists, since these picturesque resorts are very popular among vacationers.

Purchase process and expenses

Usually, the future buyer first applies to a real estate agency operating in the republic. The company's lawyer draws up the necessary list of documents for the transaction. When the buyer arrives in the Dominican Republic and passes the necessary papers, the lawyer makes sure of their originality. After the object for purchase is determined, and the lawyer has checked the seller for the presence of unpaid credit funds, court encumbrances, the notary enters into an agreement of intent. After that, the object is reserved and a deposit of up to 10% of the transaction amount is made.

Then a contract of sale is drawn up and a payment schedule is prescribed, after which the lawyer sends the papers to the registration authority for a change of ownership of the property.

These services will cost 1% of the transaction value, and the buyer will also need to pay 3% for the procedure of reissuing the rights to own the objects of sale, and the services of the realtor are paid by the seller. It should be noted that taxes are calculated not from the price specified in the final contract of sale, as is done in many countries, but from the cadastral value of the property, established by the results of the assessment made by the tax authorities.

It is also worth knowing that the services of a realtor in the amount of 5-10% of the cost of the object are usually paid by the seller, but in the case of a foreigner participating in the transaction, there may be other conditions.

Remote purchase of real estate

It is possible to purchase housing in the Dominican Republic remotely if the buyer applies to the consulate of the country. Its employees are "remote" notaries and have the right to issue a power of attorney to a realtor, which will allow you to make a deal without having to travel to the Dominican Republic.

Useful tips

Local experts recommend not to seek to buy housing on the first line from the sea due to high humidity. It can lead to high humidity in the house, as well as negatively affect the operation of household appliances. And from the point of view of buying safe housing, it is best to purchase it on the territory of protected residences.

If a foreign buyer does not speak Spanish at a good level, then it makes sense to contact a real estate agency with Russian-speaking specialists (if we are talking about our compatriots) or find a good translator so that there are no misunderstandings during negotiations and after them. It will also be useful to carefully check the reputation of the realtor, especially in the case of cooperation with the local population.

Before buying, you need to conduct a thorough check of the documents for the purchased property: the presence of the title, the owner's documents, order a property check in the state register for the presence of disputes and encumbrances on the property.

After buying a property

For the maintenance of real estate, homeowners pay a tax that is 1% of its value. To calculate this percentage, the difference between the marginal and real cost is taken. $130,000 is the marginal cost of real estate in the country. If the housing costs at least a dollar less, then its owner is exempt from 1% tax.

It is also necessary to pay the cost of utilities in the Dominican Republic. For electricity, you will need to pay $ 30 per month for those living in the apartment and $ 60 for homeowners. If the owner, who is going to be absent from the housing for a long time, warns the relevant authorities about it, then the payment will be charged until their return at a reduced rate, which is half of the established fee. The cost of water supply will be $ 15 per month, for television and Internet - $ 60 per month.

Thank you for your help in preparing the material:

Elena Brodovskaya-Risinova, company expertArichy Inmobiliaria SRL

Irina Kuziv, expertcompany ServiBrokers Realty Consultants