The Dominican Republic is one of the most visited destinations in all of the Caribbean. And often when people visit, they decide to never leave. That’s what happened to us. Our life has turned into one permanent vacation!
If you’re in the market to purchase real estate in the Dominican Republic, you most likely have questions. Here are answers to some of the most common questions we get from clients:
A: Good news! Foreign citizens are allowed to buy real estate in the Dominican Republic and have all the same rights and obligations as local citizens. In fact. Certain government incentives have been put in place to attract more foreign buyers and investors.
A: Yes, residency is not the same thing as citizenship. You may remain a citizen of your home country and still become a resident of the Dominican Republic.
The process is almost identical to the one you’re probably used to in North America. The only difference is here, the government needs to know you are financially independent. Along with providing two forms of ID, you will also be required to provide bank statements for the past 3 months as well as your last tax report. And finally, you will have to also fill in a due diligence form for the bank that clearly states where your income comes from.
Of course, when you work with us, we do everything (pretty much) for you and make the entire process as simple as possible!
A: Yes, owners of real estate in the Dominican Republic are expected to pay property taxes once a year. If you are a first time buyer, contact us to lean how to become exempt.
A: The current rate of property tax is 1% of the value of the property as established by the Dominican Cadastral Office.
A: Confotur is the name of the Dominican law that allows tax exemptions to owners of specific real estate properties.
Only some properties fall within the Confotur Law. A builder or developer needs to apply to the government to be granted Confotur.
If you buy a property with Confotur, you are exempt from paying:
- Transfer tax: 3% of the property’s value, due when transferring ownership.
- IPI Tax: Short for Impuesto Patrimonio Inmobiliari, IPP is the annual tax everyone must pay who owns a property with a value of at least US$150,000 (approximately).