BUYING
· What is the process to buy?
Most buyers find it similar to North America. For detailed information.
· What are the costs when purchasing property?
Real estate fees are paid by the sellers or vendor, not paid by the purchasers. Buyers are subject to legal fees, which are generally 1 to 1.5% of the purchase price. This amount includes all disbursements, due diligence and transfer of title. Additionally a 3% transfer tax (to transfer the title of the property to their names is incurred by the purchasers. The amount is based on the government assessed value of the property, which is always less than market value. Most buyers pay from $2000-$6000 US (depending on purchase price).
· What monthly costs are associated with owning?
General running costs like utilities, condo fees, etc. are standard like anywhere. Some fees are optional like housekeeping, etc. Below is a basic breakdown of costs for running a 2-bedroom villa (with all services). Condos are generally less each month.
AVERAGE MONTHLY COSTS:
- Subdivision/Condo Fee $200- $350/month (includes cable, security, water, outside lighting, maintenance of common areas, garbage, onsite office)
- Pool/Yard Service $250/month
- Housekeeping: $100-$300 month
- Electricity: (average $100/bedroom per month if rental unit)
- Propane: $20- $30/month depending on usage
- Misc: (consumables and maintenance) $100/month estimate (if villa, less if condo)
· Do you fully OWN your property?
Yes. Property in the Dominican Republic if fully owned and titled. There are no bank trusts or life leases. Property is registered to buyers either in their personal names or corporately, depending on how they have structured their purchase. For more information.
RENTING YOUR PROPERTY
· Can I rent my property?
Yes. Many buyers use their condos and villas as rental properties when they are not in the DR. Projects have internal rental programs or there are many reputable property/rental management companies in the area. For detailed information, visit our page.
· What is a turnkey property?
In order to rent your villa or condo, it must be completely furnished and stocked with things like dishes, linens, appliances, kitchenware, electronics, etc. Basically, turnkey means that when a renter steps into your unit, everything they need for their stay is there, minus their own personal items. For more information about what must go into a rental unit, please visit our page “Setting Up Your Property For Rental“.
Most developments that have internal rental programs will provide you with their list of what is required.
· How much will a management company charge?
A general rule is 20% of short term rental income, and 15% of long term income. This fee is for marketing the property, providing in/out services, supervision of the unit and staff, watching over maintenance issues, and services to renters. A good rental company makes renting your unit stress and work free for you.
· Do I have to supervise my rental property?
Most of our owners are absent from the DR for many months of the year (this is why they rent their units). Rental has to be simple and work free. Owners expect the process to work without personal supervision or effort.
DR management/rental companies understand this and the concept of “lock up and leave”. When you lock the door and go to the airport, know that your property is taken care of in your absence. If you rent, the company will look after all details. You may have to make decisions if contacted about things like cost of repairs, whether you want a long term rental, etc.
· How often will my property be rented?
Occupancy rates vary depending on many factors:
- Location
- Condition of the property
- How well appointed the property is (homey, decor, stocked with tv’s, etc.)price point
A general rule for the north coast is to expect occupancy rates between 50-75% of the year. Almost all properties completely pay for themselves in terms of running costs, but most owners find they make a nice sum of income as well. We can certainly give you some tips on how to increase rental revenue from your unit.
THE DR
· How long can I stay in the DR?
All foreign nationals looking to remain in the country longer than sixty days at a time, are expected to obtain a residency status. You can apply to extend this stay up to four month. After 30 days, you will be charged nominal amounts when you exit the country, based on the time you stayed in the DR.
· How large is the Dominican Republic?
The Dominican Republic is slightly less than 19,000 square miles in size, about twice the size as the State of New Hampshire.
Most developments that have internal rental programs will provide you with their list of what is required.
· What is there to do in the DR?
Activities are limited only by your imagination. Sport, community, clubs, church, and more is available just like in North America. The weather makes summer activities available all year long.
· Is the government secure?
Yes. The DR has a long term democratic government. The system is similar to that of the United States. The government is foreign investment friendly, working at long term programs for education, investing in infrastructure and technology. For more information on the DR government, please click here.
DR management/rental companies understand this and the concept of “lock up and leave”. When you lock the door and go to the airport, know that your property is taken care of in your absence. If you rent, the company will look after all details. You may have to make decisions if contacted about things like cost of repairs, whether you want a long term rental, etc
· Is the DR safe?
The Dominican Republic is a safe country. The same caution you exercise in your home country should be used here. All countries have their good areas, and others where you don’t go. Our advice is to act the same as you do at home. Don’t let your wallet hang out in tourist areas, lock your car, don’t flaunt valuables, etc.
MISC.
- Fllight times – Puerto Plata to:
Canada: 4 hours (to Toronto)
US: 3.5 hours (New York)
US: 1/5 hours (Miami)
Puerto Rico: ½ hour
· How much are property taxes?
- A 1% annual tax is assessed on real estate properties owned by individuals, (based on the cumulative value of all the properties they own) *as appraised by government authorities. Please note that the value of the property generally does not reflect a true market value assessment, but is generally lower. Most owner’s pay much less than actual market value. Properties are valued without taking into consideration any furniture or equipment to be found in them.
- The 1% is calculated only for values exceeding $6,858,885.00 DOP (about $150,000). For un-built lots, the 1% tax is calculated on the actual appraised value without the exemption.
- The real estate tax is payable every year on or before March 11, or in two equal installments: 50% on or before March 11, and the remaining 50%, on or before September 11.
- The amount of the exemption is adjusted annually for inflation.
- The following properties are exempt from paying real estate tax: (a) farm properties; (b) homes whose owner is 65 years old or older, and has no other property in his or her name; and (c) properties owned by companies, which pay a separate tax on their company assets.
· Foreign ownership restrictions? No.
There are no restrictions on foreigners purchasing real property in the Dominican Republic. Formerly, Decree 2543 of March 22, 1945 and its amendments required that foreigners obtain prior Presidential approval except in certain cases. Decree 21-98 of January 8, 1998 abolished this regulation and established as the only requirement that the Title Registry Offices keep a record, for statistical purposes, of all purchases made by foreigners.
· Inheritance Tax
There are no restrictions on foreigners inheriting title to real property in the Dominican Republic. Inheritance taxes have been recently lowered to 3% of the appraised value of the estate. Inheritance of real estate is governed by Dominican law which normally provides for “forced heirship”: part of the inheritance must go to certain heirs by law. Nevertheless, a new conflict of law statute, enacted in December 2014, allows foreigners to have their national law determine the rules of inheritance in connection with real estate located in the Dominican Republic. For this reason, it is strongly recommended that non-Dominicans who purchase Dominican real estate seek legal advice on how to benefit from this provision.
· Medical Services
The DR offers excellent medical services, professionals and facilities all just a few minutes drive. Most doctors will speak English. Specialists and prescription drugs are available. Dentists are also on par with North America. Health insurance varies in cost, but a good couples plan is between $700 – $1500/year US.
· Expat Community
Having a vibrant social life and connecting with like-minded individuals is crucial for a fulfilling experience. While enjoying the beach and warm weather is delightful, loneliness can creep in without meaningful connections. For instance, in our workplace, there’s someone who enjoys soccer and regularly gathers with fellow enthusiasts at a local pub during playoffs. This sense of camaraderie is essential, especially for women who benefit from a supportive community. In places like Cabarete, Santo Domingo, Punta Cana or Las Terrenas, there’s a thriving community of Canadians and Americans where newcomers are warmly welcomed into gatherings, BBQs, and events. This network not only fosters friendships but also eases the transition by sharing local knowledge on shopping, furniture, and other essentials.
· Shopping
Almost all major North American brands available in the towns of Puerto Plata, Sosua and Cabarete. Big box stores like PriceMart (Cosco), Ikea, La Sirena (Walmart), Home Depot, Jumbo, Super Pola are a short drive away in Santiago, Puerto Plata, Punta Cana or Las Terrenas. Sosua and Cabarete have large grocery stores and other shopping, including furniture stores and housewares.
