Article
Before Investing in Dominican Republic
The first thing you see after stepping out of the airport into the city of Dominican Republic are the enormous billboard advertisements of real estate developments across the country.
Next, you get amazed by their moderate price range. But wait; don’t take any hasty decision, for real estate purchase in Dominican Republic calls for a few extra considerations such as paying a considerable amount of taxes. Your real estate investment in this Latin American country will definitely click off when you take a calculated decision on the basis of this information.
- It is common to lure the foreign investors with tax cuts and incentives. But not all the properties fall in the category. The best way to find out which real estate investment entitles you a generous tax incentive, contact a reputed real estate agent or an attorney.
Whether or not you have to pay an annual real estate tax and a title transfer tax in Dominican Republic depends on the type of the property purchased, and also on how it is purchased. A legal expert is the best person to advise you on the most suitable option. - In Dominican Republic, you can buy real estate property from broker or directly from the owner. In the latter case, make sure all the tax and service dues have been paid by the owner prior to the sale.
Otherwise, the law of the country requires the buyer to clear all the dues. And, in Dominical Republic, a 50% penalty is charged on the arrears. Make sure that the seller provides you the proof of the previous property tax payments before obtaining title of the property. - Before making any commitment, make the seller produce at least the photocopy of the title to the property. Now compare it with the one that is preserved in the titles office to ensure that the title is authentic. It will also give you information whether there are any liens against the property.
- When you are investing in a residential condo property, keep in mind these following points:
- While buying a condo property, make sure that the developer produces the title which fully describes all the buildings of the property. In case, the title only registers the piece of land on which the property is constructed, there are risks of paying arrears on the buildings and the new owner will be liable for paying these arrears.
- Also a ‘master title’ is not enough for making your purchase legal and binding; insist that the developer also produces a ‘contract of sale’ that has to be notarized by an Attorney and is filed properly with the right department.
- After the completion of the project, the developer is expected to provide all the buyers with an individual land title for all individual units. At the time of buying, take it in black and white from the developer that along with the ‘contract of sale’, you get an agreement stating he will provide your individual land title within one year. In case, the developer refuses to enter into such an agreement, be wary of the deal with that particular developer.
- Go back
Sign up now to learn about new condo developments and investment opportunities.
