The information described herein is subject to change due to fee and tax rate changes.
Foreigners can easily purchase property in the Dominican Republic. As in any case where making a purchase outside your home country, it is advisable extra caution and seek the advice and assistance of a good real estate agent and lawyer.
After negotiating the price, a binding "Offer of Sale" is prepared by the real estate agent and signed by both parties.
At this time, a deposit is normally made of around 10%, and the lawyer usually holds this in 'Escrow'. (This reserves the property and takes it off the market).
The lawyer will then do his Searches to disclose any problems and establish full Title of the property. At this point he will ensure that all debts, accounts and taxes are fully up to date on the property.
When he is satisfied, the balance will be requested to tie in with the 'closing date'.
The process usually takes around 4 - 6 weeks from start to finish.
Upon completion of the money transactions, the title is transferred to the name of the buyer or the company and registered with the registrar of titles in the Dominican Republic. You should have the title in your name in the next 90 days.
There is a one-time transfer tax of approximately 5% of the purchase price of the property.
This can differ if the property is held in and purchased as a Corporation.
The lawyer’s fees are an additional 1-2% of the purchase price.
It is recommended that to fully understand all aspects of Buying and Owning property in the D.R., you refer to the following link written by one of our most respected Law Firms;
Please click here www.drlawyer.com
