Are foreigners allowed to own properties in Dominican Republic?
Yes, they are welcome. As a matter of fact, Dominican Republic is one of the only few countries in the world that offers the same rights of ownership for both locals and foreigners. Dominican Republic allows foreigners to own any kind of property, including land. The title deed is on a freehold basis which means the owner really owns the house and land outright.
What are the closing costs for purchasing a house in Dominican Republic?
There are two taxes each owner has to pay for a property:
- The tax on transfer of property rights, 3% of the value of the property
- The real estate tax (IPI), which is equal to 1% of the value of the real estate. There is an exempt amount of RD$8,138,353.26 (about $142,000) and the 1% is applied only to the amount exceeding this value.
In case you decide to use a lawyer, which is highly recommended, the legal services fees are 1% of the property value.
How high is the monthly carrying cost for a property?
The monthly carrying cost in Dominican Republic is low compared to other countries in the region (St. Martin, Bahamas, US Virgin Islands). This consists in:
- HOA fees (homeowners association fee) which in most cases includes water: ranges from $80 to $250 depending on the residential project.
- Electricity bill: range from $100 to $250
- Internet and cable services: range from $35 to $75.
Can I apply for a loan to buy a house in Dominican Republic?
Yes, you can. There are various banks that offer loans to foreigners that wish to purchase a property in Dominican Republic and we can help you with that. Please mention this when you contact us and we’ll send you all the info.