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Real Estate in the Dominican Republic
There is real estate
in the Dominican Republic for sale, but all real estate deals here are on
a cash basis only. Foreigners are not permitted to have a mortgage in this
country, but sometimes the seller might assist in the financing
arrangements. In these cases, the seller would require 50% cash up front
with the remainder to be paid in full in either 3 or 5 years. The usual
interest rate charged for this is somewhere in the vicinity of 8 – 10%.
You do need to have a lawyer represent you if you want to buy property in
the Dominican Republic. A contract is needed to make the deal legal. Most
properties sold here are in the name of a corporation, which means you
won't have to pay transfer taxes and you can avoid any trouble with
inheritance issues. If., however the property is not held in the name of a
corporation, you will have to pay a transfer tax of 4%.
When you search for available real estate for sale in the Dominican, the
listing will tell you if financing is available from the seller. This
avoids having to ask about each property you are interested in. Most ads
say that if financing is not listed, then none is available.
There are real estate companies that will search for a specific property
for you. You might visit this country and decide that you would like to
own a home or villa where you could come for part of the year. There are
real estate companies in the large cities and you can contact them while
you are here or when you return back home.
The prices for real estate are very reasonable. In addition, there are
many advantages to having a holiday property in the Dominican Republic,
such as:
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You don't have to pay
personal capital tax
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You can choose to
rent your property to other vacationers
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The land tax is quite
low
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There is no problem
to get a residential permit
-
Foreigners are
permitted to buy and sell property
All of these factors
make the Dominican Republic a great place to buy property and possibly set
up a resort of your own.
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