Buying Property in Dominican Republic

A brief account of how the buying process works in the Dominican Republic. We of course recommend you have a qualified legal representative to represent your interest in any purchase.

 

How the process works:

 

1- A “Contract of Sale” or “Purchase Agreement” is made and signed by both parties and the required deposit, usually 10% is placed in the Escrow account. This will reserve the property for you and in essence take it off the market.

2- Most properties are held in Dominican Corporate names, which give you two major advantages. One is, not having to pay any transfer taxes. You simply transfer the Corporation which contains the only asset, the property you are buying. The second is the avoidance of any inheritance issues.

3- If a property is not held in a Dominican corporation, then you will need to pay a transfer tax. Currently the tax is 4% of the appraised value. This value is a government calculation and does not necessarily reflect the true value of your purchase (usually far less that the actual cost). At this point it is highly recommended that you have your Attorney form a Corporation for you to avoid this tax in the future if you decide to sell and to provide you with the inheritance benefit. The costs today to form a Dominican corporation are approximately $1,750.00.

4- Closings are normally within 30-60 days of depending on the agreement of buyer and seller. All buyers’ funds should be in the Escrow account 3 days prior to closing. On the closing date both buyer and seller will sign the appropriate documents, or someone you appoint can act on your “Power of Attorney” to handle the closing for you.

5- Your Attorney will record the sale with the Registrar of Titles, typically it will be in the new owner’s names within 30-45 days.

 

Building a villa in the Dominican Republic

 

There are numerous qualified architects and engineers who understand the needs of our home owners and house builders.

 

You can negotiate and set up a payment plan through a local attorney to insure that your funds are safe and are disbursed as the project is designed and constructed. Usually held in Escrow.

 

Typical building costs today are ranging approximately $65-$75 per sq. foot for a first class Villa.

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