The buying process here in the Dominican Republic is very straight forward and more transparent than in many other countries. Once you have chosen the villa or apartment you want to buy and agreed upon the purchase price, your lawyer will draw up a conditional contract. This contract sets out details of the seller, the details of the buyer, the exact details of the property being sold and the agreed price. This contract is signed by all parties and at that point a deposit is payable, this is normally 10% of the purchase price. The contract will also include the agreed closing date which is when the balance is payable. On the agreed closing date you sign the final contract and the lawyer can begin the process of transferring the title into the buyer's name.

The legal costs can vary between 1 & 2% of the purchase price We can put you in touch with a reputable local law firm who will only charge 1% for Dominican Estate clients, although you have every right to use any lawyer of your choice.

 

You should also be aware that there is a one off property transfer tax, which is 3% of the assessed value, this is normally lower than the purchase price. It is possible, under some circumstances, for your lawyer to get this tax bill reduced but you should budget for the 3%.
 
For property with an appraised value of more than 6,000,000 pesos ($126,850 US approx) there is an annual tax of 1% of the amount that is in excess of the 6,000,000 pesos.
 
Example: if a property has an appraised value of 7,000,000 pesos ($147,991 US) you would pay 1% of 1,000,000 pesos, which would be 21,000 pesos ($447 US) PER YEAR!
 
These calculations are based on an exchange rate of 47,3 pesos to the US dollar, which can fluctuate.
 
Here at Dominican Estate we are committed to providing our clients with the highest level of service possible to make it a straightforward process to turn your Caribbean dreams into a reality.

 

The information contained on this page is correct at the time of publishing but property and tax laws are subject to change and should be clarified with your legal representative before purchase.

 

If you buy a plot we can built your dream villa at fixed price by contract.

If you have any further questions, please contact us at [email protected] or call us on + 1 809-377-0886 ( whatsapp ) or skype: dominican-estate