However, just as is the case when investing in another country, local laws and regulations could be different from what they are in your existing home country.  For that reason, it can be beneficial to have someone on the ground, with the experience to make sure the entire process is as hassle free as possible - - and of course conducted in such a way that the investment you make is legally protected as well.  Since many clients of course have very similar questions, we have prepared a Question and Answer section below that might assist you in the decision making process regarding a real estate purchase: 

Can foreigners own real estate in the Dominican Republic?

Yes, there is no restriction.  One need not become either a resident or citizen in order to purchase real estate, although many of our clients do so if spending more than 90 days at a time inside the country, or if deciding to live full time of course.  However, a client need only present a copy of a current and valid passport as the identity document used for any sales contracts and eventual titles obtained from the title office.  Again, there are no restrictions for foreigners to own property and unlike Mexico for example, no restriction for ocean from real estate either.  Recent legislation passed in the country has also strengthened the legal rights of foreigners in the legal system as it pertains to property ownership and investments inside the country.  In addition, you may use a real estate purchase as proof of local economic solvency as it pertains the residency application process as well, should you wish to consider becoming a resident or even a citizen later on (Ascot Advisory can provide assistance with both the residency and naturalization process also).

Is there private title insurance available in the Dominican Republic?

Yes, there are two companies that do offer local title insurance and Stewart Title is one from the US that is well known to many Americans.  While obtaining title insurance may offer peace of mind for many buyers and while we can assist with this process, regardless of whether or not you decide for pay for private title insurance or not, in the least you should ALWAYS conduct a title search by a trusted representative.  Searching a title principally involves checking BOTH title offices where the title will be registered (the local office in the province or district where the property is located and the main title registry office also in the capital, Santo Domingo). 

This is very important because it could be possible that a lien or encumbrance is registered in one office and not the other.  Also, it is equally important to check to see of the seller owes any back due property taxes (there are annual real estate taxes in the Dominican Republic despite some incorrect information floating around, but it is very inexpensive by North American standards).  The reason for this that the tax office does not repossess property for back due taxes as a standard practice.  Instead they will keep a tabulation of the outstanding annual taxes that might be due, plus the 50-percent late penalty, and refuse to transfer title to the new buyer until all such taxes have been paid.  Obviously it would be better to know about any issues like this before you hand over any monies to the seller.  Obviously these kind of matters are what we assist with in terms of the due diligence process for clients. 

What are some key features of the purchasing process I may not be aware of as a foreigner?

One aspect of the property purchase process that may be different for someone coming from another country is the fact that a notarized sales contract constitutes an immediate legal right of sale and possession.  The meaning of this is, the moment both the buyer and seller sign the sales contract, exchange payment and have the contract notarized, the buyer has the immediate legal right to take possession of the property.  Immediately following this, the process of registration of a new title into the buyers name begins, but in terms of legalities the initial notarized sales contract has legal weight under the law for ownership purposes.  Again, the title transfer in some respects can be considered somewhat of a formality that can take anywhere from 45 to 90 days, depending upon the expediency of the government title registration office.

Are there any taxes or fees to be paid as part of the title process?

Yes, and typically it is the buyer that would pay the costs for such fees or taxes, which in total can amount to roughly 7.5 percent of the purchase price.  There are a number of government fees and taxes related to this process, some are fixed fees where as others relate to or are a direct percentage of the transaction amount.  Obviously once the sales contract is signed and notarized, the property is yours (as the buyer) so with this logic in mind, the title transfer process normally something the buyer would want to do for his or her benefit and it is the buyers attorney that would take charge of this.

Are There Any Annual Property Taxes in The Dominican Republic?

That all depends upon the value of the home you purchase.  If you purchase a residential property and it is worth RD$5 Million Pesos or less (about US$150,000) then you pay ZERO annual real estate taxes.  If the home is worth more than that amount, you pay 1% (one percent) of the value over and above RD$5 Million Pesos (over and above US$150,000).  If your purchase raw land or undeveloped land, then in that case there is an annual property tax calculation regardless of the value.  Since it is very possible to find a middle class home or luxury apartment for less than 5 Million Pesos, many of our clients do not have any annual tax payments on their Dominican Real Estate. 

Where is the best place to purchase real estate and what can I expect to pay?

The decision as to where you might want to purchase a home, farm or apartment of course comes down to you, in terms of lifestyle choices.  The Dominican Republic offers miles of typical idyllic Caribbean beaches, but also the highest mountain range in the Caribbean as well (Pico Duarte).  In fact, there is a section of the country that is called the Alps of the Caribbean, complete with cooler climate, pine trees and ferns similar to what can be found in the US New England states.  Apart from that, there are the metropolitan areas of Santo Domingo (the capital city with a population of about 3.8 Million people) and the second largest city, Santiago (with a population of about 1 Million).  Many clients are in fact quite surprised in terms of what is available in these metropolitan areas, and you will find a large number of modern stores, supermarkets, shopping malls, movie theaters (new films in English, albeit with Spanish Language subtitles) and a whole lot more.  Some major chain stores and brands in these cities that many Americans and Europeans might be familiar with include Carrefours, Benneton, Radio Shack, Price-Smart (Price Cosco), Ethan Allan furniture, TGI Fridays, Outback Steakhouse, Tony Romas, and much, much more.  In short, if you wish to live in or near a modern urban area with these type of stores and services - it certainly is available. 

Should you have an interest in purchasing a residential building lot in one of these urban areas, you can expect to pay about US$50 per square meter, or about US$25,000 for a 500 square meter lot in a modern residential development (complete with paved road, utilities, etc.)  Since 1 acre is equal to 4,000 square meters, such a sized home lot is equal to about 1/8 of an acre.  In addition, it is still possible to find a brand new residential home or apartment priced anywhere from the equivalent of US$65,000 up to US$175,000 - all depending upon location and size.  As an example, we found a recent two story Penthouse apartment (with a sea view) recently sold for US$120,000.  In addition, there are brand new three bedroom - three bath luxury apartments going up in an upscale neighborhood of Santo Domingo, starting at US$120,000 and going up in price from there (all depending upon size, features, etc.) 

In addition, we have also found for our clients, brand new apartments going up in some of the middle class areas starting at about US$65,000.  So there really is a wide range of choices, all depending upon what you want.  However, it should be noted that such properties would include apartments ranging from 1,200 square feet up to 4,000 - complete with private parking, doorman for the building, etc.

Should you decide to venture outside the cities or urban areas, you can still find property selling for US$5 per square meter, and the equivalent of about US$1,500 per acre on up for land in some rural areas as well (depending upon quality, if very fertile farmland, etc.)  Like anything else, it all depends upon location, size and so on.  However, in terms of beachfront, it is still possible to find one-quarter acre beach property for about US$85,000 (or less for larger parcels).  With regards to homes or apartments on or near a beach community, current prices (2006) range from US$90,000 for a one or two bedroom condo directly on the beach ranging up to about US$150,000 for an ocean view villa as well. 
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