The Dominican Republic is a popular tourist destination, attracting more than 5 million visitors every year. With its stunning beaches, lush tropical rainforests, and vibrant cities, it’s no surprise that people are interested in the possibility of buying property here. But is it possible for foreigners to buy property in the Dominican Republic? Can they take advantage of the attractive real estate market, or is it something that foreign nationals are unable to do? In this blog post, we’ll take a look at the laws, regulations, and legal requirements for foreign nationals buying property in the Dominican Republic. We’ll explore the different options available, and outline some of the benefits and considerations of buying property here, so that you can make an informed decision about buying property in the Dominican Republic.
1. Foreigners can buy real estate in Dominican Republic
One of the most attractive aspects of the Dominican Republic is that foreign investors can buy real estate with ease. Foreigners have the same rights to buy real estate as Dominican citizens, and no special permits are required. This makes the Dominican Republic an attractive destination for those looking to purchase property abroad. The Dominican Republic also boasts a relatively low cost of living, making it an ideal choice for retirees, families, and investors alike.
2. Foreigners can purchase property through a Dominican corporation
Foreigners can purchase property in the Dominican Republic through a Dominican corporation. This involves forming a corporation in the Dominican Republic, with all the shareholders being foreign, and having the corporation purchase the property. The corporation will own the property and the foreign individuals, or entities, will own the corporation. This structure is beneficial for those who want to buy multiple properties or who want to keep their foreign entity status. It also provides the foreign buyer certain tax benefits, as the Dominican Republic has a more favorable tax environment than many other countries. Additionally, the ownership of the property is much more secure, as it is held by a Dominican corporation.
3. Foreigners must pay a stamp tax upon purchase of the property
When it comes to purchasing property in the Dominican Republic, foreign citizens must pay a stamp tax of 2% of the total value of the property. This fee is paid at the time of purchase and must be paid in cash. There are other taxes and fees which may be applicable based on the type of property being purchased, such as the transfer tax which is a 1.5% fee on the total value of the property. In addition, foreigners may be subject to an annual property tax of up to 1.5% of the declared value of the property. It is important for foreigners to familiarise themselves with all applicable taxes and fees prior to purchasing property in the Dominican Republic.
. Foreigners may be required to obtain permission from the Central Bank and the Ministry of Interior and Police before a property purchase is finalized. Additionally, foreign buyers are subject to taxation and must be aware of any restrictions on how their property can be used. For these reasons, it is important for potential buyers to consult a local lawyer or real estate agent before embarking on the purchase of a property in the Dominican Republic.