Buying a property in the Dominican Republic
The rights of foreigners to purchase real estate in the Dominican Republic
On January 9, 1998, President of the DOMINICAN REPUBLIC Leonel Fernandez Rein signed a decree abolishing all restrictions on the right to acquire and own land and real estate by foreign citizens in the country.
From this point on, the path to a tropical paradise on the island of Haiti became easier for foreign capital, which opened up great prospects for economic and cultural growth for the former banana colony. Foreign money flowed into the country, for which REAL ESTATE is now being acquired in the country: the growing Buying a property in the Dominican Republic such an investment highly profitable due to the rapid rise in prices.
In addition to housing, foreigners buy a ready-made business here or open their own businesses, because the procedure for registering a company is simplified, as is the tax regime – the Dominican government has done everything to make foreign business feel comfortable. Therefore, for most states, visas to the country were even abolished.
There are also no restrictions on the inheritance of real estate in the DOMINICAN REPUBLIC by foreigners. Inheritance is taxed from 17 to 32% depending on the degree of kinship of the heir and the deceased. However, if the heir is outside the Dominican Republic, an additional fee of 50% of the amount of taxes is applied.
The country has the right of “compulsory inheritance” when a certain part of the inheritance is legally obliged to transfer to certain relatives. For example, if a foreigner has a child, then 50% of the inheritance should be transferred to the child, regardless of the legislation of the country of which the deceased was a citizen.
How to start the purchase process
Making a purchase of real estate in the Dominican Republic is not so difficult, because the procedure is quite understandable and extremely simple. To purchase, you must have a passport, the rest – the care of a lawyer, a notary and a realtor.
To begin with, it is recommended (for residents of the country) to open an account in a Dominican bank.
A standard set of documents for opening the most convenient current peso bank account in this country includes an application, a copy of a passport or a sedoula (temporary residence permit), if one already exists, another identity card (for example, a driver’s license), two letters from organizations that exist for at least a year (you can ask your local realtor and a lawyer).
Some banks may also require bank statements (for example, savings accounts) at another Dominican bank.
Such an account allows you to make payments using a personal checkbook, you don’t need to bring a bag of cash with you when you make a big deal, you just have to write a check.
It is both safe and prestigious. An electronic debit card is attached to the account, allowing you to pay in stores or withdraw money from an ATM. The monthly balance of the account accrues interest.
For non-residents the following option is possible: you can pay for the purchase of real estate with American Express checks, which are signed in the presence of a lawyer.
Since the purchase of checks for a large bag has become more complicated in Russia, you can bring 10% of the cost to pay the deposit, and after checking the documents, transfer the remaining amount to the account of a lawyer.
Let’s return to the acquisition procedure: after the buyer has decided on a real estate option, he makes a written offer to the seller for a REAL ESTATE (Agent to Real Estate) with the help of an agent.
After the seller has approved the settlement conditions and the cost, you will deposit a security deposit – usually 7-10% of the value of the object (later in the final calculation this amount will be taken into account).
When making a pledge, the SELLER and the BUYER sign a preliminary contract of sale in the presence of a notary. At this stage a lawyer appears who will accompany the transaction. Even local residents do not dare to carry out real estate transactions on their own, so a good lawyer will become a guarantor that the purchase will be successful.
After the seller and the buyer sign a preliminary contract of sale in the office at the notary, who certifies their signatures, the buyer pays the balance.
As a rule, the final payment should occur within a month. In addition to the conditions, term of payment, rights and obligations of the parties, the contract must contain a description of the object and its plan. The compliance of the object with the plan is checked by an independent appraiser.
This stage is of great importance because it allows you to insure against fraud when an unscrupulous seller tries to sell, for example, an object that according to the plan is similar to the described one, but does not correspond to its characteristics.
Registration of ownership
Since all real estate transactions in the country are carried out on the basis of the Title Registration System (ownership of property), the lawyer checks the validity of the title and transfer it from the seller to the buyer in the Title Registry Office