A worry-free and straightforward process to buy real estate in Punta Cana

It is crucial to pursue legal advice with a reputable real estate lawyer in the Dominican Republic to perform the property verification or due diligence and ensure you receive the title deed of the property to your name so you do not lose possession of your property. It often happens that the realtor and/or the seller pressure the buyer into a hurried closing despite the advice of legal counsel. It is imperative that an attorney performs a complete title search, including the chain of ownership to ensure the seller has the right to sell, and that no others are awaiting to take possession of the property. This search will also reveal any taxes owed or liens.

Real estate lawyers advise the parties in a real estate operation, making sure to complete all the necessary procedures during the purchase or sale of a property. A competent real estate lawyer is knowledgeable and must know the practices, intricacies and customs of the Dominican real estate market and if you do not speak Spanish, it is preferable that you hire a bilingual lawyer.

There are no restrictions on foreign individuals or companies owning or leasing real estate in the Dominican Republic. The process for purchasing real estate for foreigners is exactly the same as for Dominicans.

A 1% annual tax is assessed on real estate properties owned by individuals, based on the cumulative value of all the properties as appraised by government authorities. The 1% is calculated only for values exceeding US$160,000.00. Properties are valued without taking into consideration any furniture or equipment to be found in them. So, if you only have one property and it is worth less than US$160,000.00 you won’t pay any property tax. So if you have a property that is worth US$170,000.00 you will only pay 1% of US$10,000.00, this would be 100 dollars per year. The real estate tax is payable every year on or before March 11, or in two equal installments: 50% on or before March 11, and the remaining 50%, on or before September 11. Also, if the property you choose applies for the Tourism Incentive Law No. 158-01 (CONFOTUR) you will not pay the annual real estate tax for 15 years.

You can stay in the country up to 30 days but you can extend your stay up to 120 days by paying an additional fee upon departure.

The properties that have the benefit of CONFOTUR (Law #158-01) are exempt from the payment of the 3% transfer tax and from the annual real estate tax (1%) for 15 years.

Although the real estate closing timeline varies case by case, typically you can expect closing on a property to take 60 – 90 days.

Yes but there are certain risks that come with it. You’re trusting your money to the developer so it is very important to conduct a due diligence on the developer by checking licenses/permits etc., reviewing past projects completed by this company, before finally confirming if it is legit. Hiring a real estate lawyer in the Dominican Republic to review and make sure the contract is solid is essential. Your lawyer will ensure that you are protected in case the project is not finished, developers declare bankruptcy, or if there’s any other issue with their legal status.

No, it is not necessary for either the buyer or the seller to be present during a real estate closing. A real estate lawyer with a Power of Attorney (POA) can handle all necessary paperwork and verify monetary transactions.

Real Estate Lawyers´s fees in Dominican Republic are normally based on a percentage of the purchase price of the property, which range between 1% up to 1.5% depending on the property. You could hire a lawyer for less, but be careful, sometimes that translates into them not doing their job, the complete property verification or due diligence, so it depends on your situation and if you are knowledgeable and comfortable enough with the attorney you choose. Also make sure that the lawyer you choose is fluent in English or the language you speak, so there are no misunderstandings.

Real Estate Closing Costs in Dominican Republic will vary depending on the property value and if the property applies for the CONFOTUR Tourism Incentive Law No. 158-01. Therefore, if the property you buy applies for the CONFOTUR incentive, you can expect spending only 1-1.5% of the property purchase price in closing costs. However, if it doesn´t, you can expect spending up to 5% of the purchase price for closing costs. It wouldn’t be any more, but could be less. This will include attorney fees, transfer tax, notary fees, stamps, checks, and any other diverse closing costs associated with the purchase to get the title in your name.

Foreigners can inherit real estate in the Dominican Republic with no restrictions. Inheritance taxes have been recently lowered to 3% of the appraised value of the estate.