There are personal and business interests. The Dominican Republic offers a solid real estate sector, a thriving economy, breathtaking landscapes, and a favorable investment climate. There are significant benefits to investing long-term in the Dominican Republic’s real estate sector.

For personal interest, the beaches in the Dominican Republic are captivating, along with the warmth and joy of its people; it is also possible to take advantage of property rental. This is the second interest because the Dominican real estate sector is rapidly evolving; real estate values continue to increase, so if a property is intended only for summer residence, the best way to take advantage is to rent it out. During the high season, rental prices can increase by 20 to 50%, which further increases your potential profit.

The answer to this question will vary depending on the purpose of your future investment and your lifestyle. If it is for rental, recouping money from your investment, and enjoying your property a few weeks a year, the rental rates you can obtain with a beachfront unit in some of our most beautiful coastal areas of Punta Cana, Las Terrenas, Bayahibe, or La Romana are excellent. In addition, the local real estate market is evolving towards projects such as condominiums with rental pools and hotel-like services, so owners don’t have to worry about anything.

In Santo Domingo, the general minimum investment requirement is lower because the supply is broader, and you cannot buy a condominium or a villa right in front of the beach. However, if you manage to acquire a good property, you can rent it to regular tourists and business travelers.

In the Dominican Republic, there are no restrictions on foreigners owning real estate. Both individuals and foreign commercial entities can buy, sell, and own real estate, provided they comply with the minimum requirements set forth by law.

For the transfer of the Property Title Certificate, individuals who acquire real estate in their name must request incorporation into the system of the General Directorate of Internal Taxes (DGII) for the assignment of the National Taxpayer Registry (RNC) number.

Foreign commercial entities incorporated in foreign jurisdictions must establish a domicile in the country, obtain the Commercial Registry, and be incorporated into the DGII system for the assignment of the National Taxpayer Registry (RNC) number.

The Title Certificate is the document that endorses a person’s ownership right over a property, issued by the Title Registry, and is the official document of the Dominican State that grants probative force regarding ownership.

Several risk factors can affect a real estate transaction that should be minimized through the investigation and verification of the property’s registry, tax, and judicial status. It is necessary to hire a professional lawyer specialized in carrying out the proper procedure to obtain information from the various institutions that govern the area of Real Estate Law.

The procedure for purchasing real estate will depend on the legal structure for the acquisition. At Top Homes Dominicanana, we provide you with real estate advice and the legal service you need to make your purchase successful.

The buyer of real estate must pay the Transfer Tax, which is 3% of the value registered in the DGII or the sale price indicated in the Sale Contract, whichever is higher. This tax is paid at the DGII, by management check, issued in favor of the Collector of Internal Taxes.

Law 158-01 and its amendments establish certain benefits and fiscal incentives for real estate projects, commerce, and commercial activities in the tourist areas of the country. Any real estate project that benefits from the exemptions granted by Law 158-01 will benefit the first buyers through the exemption of the 3% Transfer Tax for the registration and transfer of the title certificate in their name, as well as from the 1% of the Property Wealth Tax (IPI).

In addition to paying the 3% Transfer Tax, lawyers in a real estate transaction set fees at 1% of the actual sale price, plus the fees of the acting notary public. Each party in the transaction is responsible for paying the fees of their lawyer and costs involved in the transaction, as appropriate. The costs and expenses may vary depending on the type of structure for the purchase of the property.

A real estate owner must pay annually, the Property Wealth Tax (IPI). The IPI is a tax applied to the real estate wealth of individuals and trusts.

This tax levies the total wealth of trusts and, in the case of individuals, levies the total wealth over RD$7,710,158.20, with 1% of the surplus of properties intended for housing or commercial, professional, and industrial activities and/or urban lots built or not. Properties whose value is below the indicated value will be exempt from IPI.

This tax is payable in two (2) semi-annual installments, with the 1st payment on March 11th and the 2nd payment on September 11th of each year.

Properties in the name of a commercial company pay 1% of the asset, per year of the appraised value without exemptions.

Properties exempt from paying IPI include: agricultural/rural properties, properties whose owner is 65 years of age or older (and does not have real estate in their name), properties covered by Law 158-01, and properties within a low-cost trust and those of public offer.

Although it is not mandatory, property insurance is highly recommended to protect your investment against possible natural catastrophes and unforeseen events.

The income from vacation property rentals varies depending on the location and type of property but can range from $1,000 to $4,000 per month for apartments, depending on the location.

Yes, many Punta Cana property owners generate rental income by renting their properties to tourists when not in use, making it a practical investment.