Dominican Republic

Dominican Republic Real Estate

With impressive prices, a booming tourism industry, and a robust rental market, this beautiful region has so much to offer investors.

The Dominican Republic is located between Cuba and Puerto Rico on the island of Hispaniola, the second largest in the Caribbean region. The DR occupies most of the island and shares approximately a third with Haiti, from which it declared independence in 1844. It has a rich tapestry of history stretching back hundreds of years; woven with indigenous Taino influences, the impact of Spanish colonization, and the modern vibrancy of its people.

The allure of the Dominican Republic goes far beyond crystal waters and stunning beaches. This fascinating country also consists of around 100 smaller islands and is a myriad of culture, luxury, and opportunity. As the oldest European settlement in the Americas, Santo Domingo, the capital city, exudes a charming blend of colonial architecture and contemporary energy with such captivating areas as the Zona Colonial. You are able to invest in properties that sit between UNESCO World Heritage sites and modern business hubs. Beyond its historical significance, the Dominican Republic also boasts diverse ecosystems, from lush rainforests to mountainous terrains, offering a multifaceted landscape for exploration.

Prospective buyers can anticipate a spectrum of property types that cater to various tastes and budgets. Along the coastlines, beachfront villas redefine luxury living, boasting spacious layouts, private pools, and breathtaking views. Modern condos provide an urban oasis with proximity to amenities and recreation. For those seeking a touch of history, charming colonial-style homes offer a glimpse into the nation’s architectural heritage. Additionally, the Dominican Republic presents opportunities for undeveloped land, inviting buyers to bring their visions to life.

Dominican Republic Homes

At the time of writing, there are around 7000 Dominican Republic new homes for sale with prices from as little as $22,000 to as much as $260,000,000. Buying property in the Dominican Republic is easy as there are no restrictions on foreign investment in land like in other Caribbean countries, and foreigners have the same rights as locals. There exists a fully regulated system of land titles, so you are listed as the landowner and have full legal protection. Decide what you want, pre-built or new build? Make an offer, transfer your funds to your agent or lawyer who will perform the title search, and once you’ve signed the Promise of Sale, the deposit will go to the seller. Once you’ve agreed and begun the payment plan, there’s just the final inspection to go before you sign the final agreement and the property is yours!

There are a number of new developments across the islands, especially a rise in Eco-Luxury communities. The Dominican Republic’s rise in eco-conscious luxury sees communities blending modern comfort with green living. Mixed-use complexes like Punta Cana’s “Vista del Mar” offer chic residences alongside boutiques and entertainment, while restored colonial gems like “Casa Colonial” preserve culture and exclusive living spaces. If you have to be beachfront, “Playa Azul Residences” transform waterfront properties into lavish havens for ocean lovers.

Golf lovers flock to the island and invest in “Cocotal Golf & Country Club” for premium amenities and strong rental prospects. For the environmentally aware, there has been rising demand for smart homes with futuristic tech, such as at “Casa Futura” which ensures convenience and efficiency in modern living. The stunning “MediLux Retreats” cater to medical tourists, offering wellness-focused properties near clinics and facilities.

Dominican Republic Developments

If you are considering buying Dominican Republic real estate, Punta Cana is an iconic destination on the eastern coast and stands out as a prominent investment hub. With its world-renowned and seemingly-endless beaches and thriving tourism sector, Punta Cana offers a spectrum of real estate opportunities from beachfront villas and luxury homes at the golf course.

Further to the northern coast, towns like Cabrera and Las Terrenas offer beautiful villas and condos, with perfect beaches and a fantastic opportunity to invest in a peaceful escape from city life. There is a large ex-pat community here, so lots of opportunities for long-term rentals, giving you a regular stream of income. Our first hot tip is to consider Samaná in the northeast, boasting gorgeous, quiet beaches and stunning waterfalls. It’s also home to many vacationing whale watchers, who flock here during migration season and offer many lucrative rental opportunities.

Our second hot tip is Jarabacoa, a mountain town otherwise known as the “City of Everlasting Spring”. It offers significant returns on vacation rental properties due to its popularity with adventure tourists.

Costs involved in buying and selling property in the Dominican Republic

So what are the costs involved in buying or selling property in the Dominican Republic?

Your annual property tax is called “Impuesto Sobre la Propiedad Inmobiliaria” (IPI) and is paid to the local municipality. This is assessed every year and is taxed at 1%. You must also consider the transfer tax, otherwise known as the “Impuesto de Transferencia de Propiedad (ITP). The rate is 3% of the assessed value of the property and is the responsibility of the buyer. The buyer must also pay notary fees, which are usually between 1% and 2% of the property value.

Of course, should you use a real estate agent there will be their commission to consider. For developed property, the commission rate is usually around 6% of the sales price. As for undeveloped property, the commission rate for farms, groves, and undeveloped property is often around 10%. For business opportunities, the commission is typically 10% of the total sales price, including inventory.

If property is also sold along with the business, the applicable property rate is used. The charge for selling leaseholds is 6% of any consideration paid by the purchaser for the leaseholds, plus the regular brokerage commission on the unexpired portion of the lease. For the collection of deferred payments, a commission of around 2.5% of the amount collected is common. When a broker has a mortgage service agreement, this condition may not apply, with a minimum charge often set at $1.00 per collection.

Understanding these costs and rates is essential for buyers and sellers alike, as they ensure transparency and informed decision-making when navigating the real estate market in the Dominican Republic. Make sure you have the best information and local knowledge by contacting us today to discuss your new adventure in the Dominican Republic.

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