Procedure of buying property in Dominican Republic





Information about the Dominican Republic: Geography, history, population, map, flag, visa
January 9, 1998 President of the Dominican Republic Leonel Fern?ndez Reyna signed a decree on the abolition of all restrictions on the right of acquisition and ownership of land and real estate by foreign nationals in the country. From that moment on the way to a tropical paradise on the island of Haiti for foreign capital simplified, which opened to the former colony of the banana great promise for economic and cultural growth. In the country of foreign money began to flow, which is now acquired property in the country: the growing demand for it makes such a highly profitable investment due to the rapid rise in prices. In addition to housing the foreigners are here and ready to buy a business or open their own business, as a simplified procedure for registration of a company, as well as the tax regime - the Government of Dominican Republic has done everything to foreign business to feel comfortable. Therefore, for most states were even lifted a visa to the country.

On the inheritance of property in the Dominican Republic by foreigners and no restrictions. The inheritance is taxed from 17 to 32% depending on the degree of kinship and the heir of the deceased. However, if the heir is outside the Dominican Republic, applies a surcharge of 50% of the amount of taxes. The country has a right to "compulsory inheritance", when some part of the inheritance by law obliged to pass certain relatives. For example, if the alien has a child, then 50% of the inheritance should go child, regardless of the law of the country of nationality of the deceased.

Getting there


Typically, the buyer of real estate he arrives in the Dominican Republic for a deal. If you are interested in purchasing a remote, the real estate agents, of course, can help you with the purchase of a remote proxy. Usually, the representative by power of attorney signs the contract on the purchaser's name and prepares all necessary documents with the help of advokata.Etot issue should be resolved directly with realtors.

The Dominican Republic has three international airports, located in Santo Domingo, Punta Cana and Puerto Plata. Domestic Aeroflot can fly to Lima (on Mondays and Thursdays), and then transfer to a flight company «Condor» Lima, Santo Domingo, you can also fly via Miami and Hyu-Yopk (on Mondays and Fridays) with a transfer to a flight to Dominican capital of Santo Domingo.

From Europe the planes fly every day. The main points of transplant - Paris, Frankfurt, Munich, Madrid, Amsterdam. The most convenient and safe, although not the cheapest way - daily flights airline «Air France» in Paris and «Lufthansa» via Frankfurt. From Paris to Punta Cana and the duration of a transatlantic flight is 9 hours and costs $ 1,1 thousand «Lufthansa» fly into all three airports, the flight duration - 10 hours, the cost - $ 1.22 Thousands of airline «KLM» also flies to Santo Domingo, Punta Cana and Puerto Plata.

You can also get to Santo Domingo in Madpid Spanish airline «Iberia» or «Air Europa». Also, some airlines will organize seasonal charters to the Dominican Republic, for example from Moscow airline Transaero, for $ 1,3 thousand will take you to Punta Cana from May to September.

Landed on Dominican soil as a tourist, a potential investor purchases at the airport tourist card for $ 10 (hereinafter refer to the section "Visas").

From Punta Cana and Puerto Plata, the easiest way to get to commuter aircraft (flight duration of 50 minutes, cost $ 120 one way). And from Santo Domingo and Puerto Plata can be reached by bus firm "Caribe Tours» ( «Caribe Tours») or Metro. Flights every hour from five in the morning until seven at night (the cost of tickets - about $ 7, travel time - 4.5 hours) or a taxi for $ 200 for 3 chasa.Dlya movement between the cities there are long-distance bus lines, and in cities other than the usual taxi, you can ride on the local marshrutkah "Curry public" or small buses "guaguas.

Car hire is available for persons aged 25 years, having a driver's license and an international credit card, right-hand movement. At lease insurance is obligatory, and rightly so: the movement in the country's chaotic, everyone here goes by its own rules. Also extended for rent mopeds and light motorcycles, but they are given without insurance.

How to start the buying process

Checkout real estate in the Dominican Republic is not so difficult, because the procedure is quite clear and very simple. To purchase you must have a passport, the rest - Care lawyer, notary and estate agent.

For a start it is recommended (for residents of the country) to open an account in the Dominican bank. The standard set of documents required for opening the most comfortable current account in pesos in the country includes the statement, a copy of the passport or seduly (temporary residence), if it already exists, another identity (eg driver's license), two reference letters from the organizations that exist at least a year (you can ask a local realtor and a lawyer). Some banks may also require statements of account (eg savings) in another Dominican bank.

Such an account allows you to make payments by personal check book, with no need for major deals to bring in a suitcase of cash, simply write a check. This safe and prestigious. By the account attached an electronic debit card, enabling to pay in shops or to withdraw money from an ATM. At the monthly account balance is charged interest.

For non-residents of the following option: you can pay for the purchase of real estate Check American Express, which are signed in the presence of counsel. Since buying a large bag checks complicated in Russia, you can bring a 10% of the cost for bail, and the rest of the bag, after verification of documents to transfer to the attorney.

Returning to the procedure of purchase: after the purchaser was determined with the option of real estate, he is using an agent makes a written offer to the seller to purchase real estate (Offer to Buy Real Estate). Once approved vendor payment terms and price you make a security deposit - usually 7.10 % of the value of the object (later in the final calculation of this amount will be taken into account).

When bail seller and the buyer sign a preliminary contract of sale before a notary. At this stage there is a lawyer who will accompany the transaction. His forces of real estate transaction do not dare to even the locals, so a good lawyer will guarantee that the purchase will be successful.

Once the buyer and the seller sign a preliminary contract of sale in the office of a notary, who assured them of a signature, the buyer pays the balance. Typically, final payment must occur within a month. In the contract, in addition to the conditions, terms of payment, rights and obligations of the parties, there must be a description of the object and its background. Relevance facility plan is verified by an independent appraiser. This stage is important because it allows you protect yourself from fraud, when the unscrupulous seller trying to sell, for example, an object that the plan is similar to that described, but does not match his performance.

Registration of ownership

Since all real estate transactions in the country are carried out under the System of Registration of title (ownership of the property), the lawyer examines the legality of title and transfer it from the seller to the buyer in the Real Estate Registration Office is (Title Registry Office), the Land Court (Land Tribunal) and the State Tax Office (General Internal Revenue Directorate, DGII). Then he prepares a final purchase agreement (contract), acknowledge it at the notary draws up the title to the new owner.

Registration office in every region of the country's own. Shopping in the most popular among investors cities Sosua and Cabarete are recorded in Puerto Plata, to the constituency which they relate.

Since the signing of the contract owner of the property is considered to be the buyer: he can now inhabited, and then with the full payment of the cost of the house and paying the tax on real estate notary draws up the certificate of ownership (title) at the registration office. This can take anywhere from two weeks to three months, but in some agencies for a fee, the process can be accelerated.

When buying a ready-made houses, land included in the price and the buyer will receive a certificate of ownership as the land, and most houses. When buying apartments in the property are made only apartments, but the earth is made of a condominium (all owners of apartments). This procedure acts as the acquisition of real estate both physical and legal entity.

Associated costs

Expenditure on the acquisition of property other than the most of its cost, inclusive of tax on transfer of property (Transfer Property Tax). He is 3% of its appraised value, which is usually below the real, but today in most places because of the many deliberate undervaluation had installed a minimum acceptable price for the land or property. Attorney fee is about 1% of transaction amount.

Reduce the cost of the tax can be as follows. Need to purchase "clean" company (without tax debts) and agree with the seller on making real estate in the authorized capital of the company, and then the seller will come from members of the company with cash buyer. The buyer will remain with the company in the authorized capital of which the property is located. This scheme allows to reduce the tax is approximately two times, but a lawyer will cost a bit more expensive.

Payment of the purchase cost is often carried money order, but are accepted and cash, and traveler's checks. The most popular checks are American Express: restrictions on their export is not, so this is the most convenient way. Documents on the origin of funds is required. You can also translate into a lawyer trust account or open a personal account in the Dominican Republic, but this requires a personal presence. You can also register a Dominican company and open a bank account on it.

Mortgage and construction


In the Dominican Republic to non-residents to get a loan to purchase real estate is difficult, but you can use the services of a mortgage broker. The amount of loan is 80% of the value of the object, is given for five years, under 20 - 21% per year. List of documents depends on the bank. You can take a loan and a bank in Russia.

After buying the land for construction of houses, the key will take six months and will cost $ 800-1200 per square. m. Construction is carried out by local construction companies.

Building permit receives an authorized Dominican engineer, the cost of a permit is usually included in the total cost. For large commercial buildings can have a sense of involvement of foreign contractors, but must pay for the services of local engineers, for a total cost quite expensive.

When buying land, counsel must ensure that the sold object can be used as the buyer wants. This is due to the fact that there are some legal restrictions, such as Act 305 of 1968 establishes a 60-meter "maritime zone" (an analog of Russia's water protection zone) around the coastline of the Dominican Republic, measured from the high tide line. In this zone is not allowed the construction of any building without special permission.

In addition, in the tourist areas there are restrictions on the construction of buildings regulated DEFINPRO, a special department of the Central Bank. Some land is sold strictly under the agricultural business. Buying property in the Dominican Republic during the construction phase, you can expect to progress payments or bank loan up to 20 years.

There are formal restrictions on height and number of storeys. Currently it is 8 feet and two floors for houses and 11 meters and three floors for apartments.

What to do next

In the case of buying real estate for more than $ 140 thousand will also pay an annual property tax (see the section "Contents of real estate").

After the acquisition of real estate is easier to obtain citizenship of the Dominican Republic, as well as the consideration of your documents and statements by the migration service is loyal to foreigners owning property (see "The visa regime".

Rent in the Dominican Republic

Since the Dominican Republic - a tourist paradise, the rental market here is developed extensively. The most common objects rent - villas, apartments or bungalows. Previously quickly surrendered to a small apartment for a low price. We have demanded more expensive items with two or three bedrooms and good views. At short time faster rent apartments near the beach and infrastructure in Sosua and Cabarete.

Cheap apartments can cost $ 30-50 per day for a short period and from $ 500 per month - for long. Apartments in complexes of 1 line costs $ 100-200 for a short time and from $ 1 thousand per month - for long. Villa near the coast at a cost starts at $ 700 per week or more, but it also depends on its equipment.

The most expensive season - holidays and vacations, when many tourists from around the world are sent to the Dominican Republic to celebrate the New Year or Christmas under a palm tree, as well as the Catholic Easter and the surfing season, when in mid-December to late January here enthusiasts flock to the high waves. During this period, housing, and especially houses becoming more expensive in two-three.

Rent is through a tour operator, real estate agency or developer that manages the complex. Usually, signed a short agreement to the terms and conditions. Many landlords request a deposit for the property.

For assistance in creating material thank Roman Senina company Coldwell Banker North Coast.
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