There are no restrictions for foreigners to purchase real estate in the Dominican Republic. To purchase a property in the Dominican Republic foreigners only need a valid passport and a second ID with a picture on it (driver license, ID card, insurance card etc.). It is recommended prior to purchasing a property to have an attorney investigate its legal status. For this the seller has to provide the buyer with copies of the Title Certificate, the property survey or plan, their identity card or passport, documents showing that the property is either exempted or up to date with the payment of Tax, corporate documentation and authorization to sell (if applicable), condominium regulations and declaration (if applicable).
For the transfer of the ownership of real estate are required following steps:
• Sign a Contract of Sale in front of a Notary who will authenticate it. In case that the seller is married, the spouse must also sign the Contract of Sale. The Contract of Sale will contain the legal description of the property, price agreed and other conditions agreed.
• Receive appraisal of the property from the tax authorities at the nearest Internal Revenue Office and then proceed with the payment of transfer taxes.
• The Contract of Sale, the Certificate of Title of the seller, the documentation provided by Internal Revenue, together with the copies of the Identity Cards or Passports of the seller(s) and buyer(s) will be deposited at the Title Registry Office for the jurisdiction where the property is located and the sale is recorded.
• The Title Registry Office issues a new Certificate of Title in the name of the buyer and cancels the old Certificate issued previously to the seller. Depending on the Title Registry Office where the sale was recorded, the time from the filing of the Contract of Sale to the issue of the new Certificate of Title can be between few days and few months.
Legal fees are 1% of the agreed sale price (with a minimum of $800), which includes all necessary contracts for closure, research the legal status of the property and the steps to transfer the Certificate of Title to the name of the new owner. The legal fees for the purchase are paid by the buyer. The seller is responsible to pay commission to the real estate agency.
Transfer Tax is three percent (3%) of the sales value, which is calculated from the value resulting highest between the Internal Revenue Office’s appraisal and the value expressed in the contract (market value).
Annual Property Tax:
1. Property owned by an individual with an appraisal value below 6.5 Million Pesos, as determined by the Tax authorities, will be exempt of annual property tax and any excess will pay 1% per year.
2. If a person owns more than one property, than the appraisal value will be added together and if the value of the appraisal is less than 6.5 Million Pesos will be exempt of annual property tax. If the appraisal value exceeds 6,5 Million Pesos, then 1%Tax per year will be paid on the difference.
3. Properties owned by a company pay annual property Tax 1% of the appraisal value anyway.
Inheritance of Real Estate by Foreigners
There are no restrictions for foreigners inheriting Title of real estate in the Dominican Republic. Inheritance taxes are a 3% of the appraised value of the real estate as determined by the tax authorities. If the beneficiary resides outside the Dominican Republic, inheritance taxes are subject to a 4.5% of the appraised value of the real estate as determined by the tax authorities.
The process to obtain Dominican Residency
It is required that the applicant obtains a Residence Visa at the nearest Dominican consulate, in his country of origin. To obtain the residence Visa, the applicant must present the following documents:
• Birth Certificate.
• Police Report.
• Marriage Certificate.
• Bank references from the country of origin of the applicant, and a copy of the Title Certificate if the applicant owns a property in the D.R.
All above documents must have the APOSTILLE STAMP.
We recommend that the applicant contacts the Dominican consulate prior to going to arrange an appointment and find out if any additional documents are necessary. The above-listed documents are the basics, but requirements may slightly change between consulates.
After receiving the documents, the consulate will proceed to stamp a Residence Visa in the passport of the applicant. This visa will be valid for one year.
Once the applicant has the Residence Visa stamped in the passport, the consulate will return all documents. Then the applicant takes them to an attorney to continue on the process. The applicant must go to Santo Domingo for a medical exam and again in 4-5 months to pick up the residency card, which will be valid for one year. The applicant will have to renew the residency every year for the first 5 years.
Legal Services:
We work with the most trusted attorneys in the area so you can have the best legal representation and ensure for you clear title, easy, smooth and worry-free transaction:
Notary Guido Perdomo:
Sosua, El Batey
Pedro Clisante Street 73,
Plaza Perdomo, II level.
Phone: +1 809 571 1950.
Guzman Ariza & Asociados:
Sosua, El Batey
Villa Ana Maria, Calle Pablo Neruda
Phone: +1 809 571 2880
Garcia Blanco & Asociados:
Cabarete, Main Street;
Ocean One Plaza
Phone: +1 809 571 04729
