The Dominican Republic is a Caribbean country located in the Greater Antilles archipelago on the island of Hispaniola. It shares the eastern five-eighths of the island with Haiti, making Hispaniola one of only two Caribbean islands shared by two sovereign governments, along with Saint Martin. The Dominican Republic is the Caribbean’s second-largest and most diverse country, located two hours south of Miami, less than four hours from New York, and eight hours from most European capitals. The Dominican Republic, known for its friendly and welcoming people, is a destination unlike any other, with breathtaking natural beauty, fascinating history, and diverse culture. In general, the Dominican Republic is best known as a business sanctuary.
Here we will study the overview of the Dominican Republic and its potential for investment in real estate. If you are looking for a place to invest in, Dominican Republic is the right place for you. For information on real properties for sale in the Dominican Republic, as well as current rental rates, contact our Dominican Republic real estate broker. You can visit our website dominicanlistings.com to put in your investment here in real estate and boost your income.
Real estate is an excellent alternative if you want to bring your investment in this country from abroad. With a stable and developing economy, world-class infrastructure, and a robust influx of foreign investment, the Dominican Republic is an appealing offer for investors. The Dominican Republic has a very favorable business climate, thanks to its ‘ease of doing business,’ low cost of doing business, and wide range of investment incentives. With a well-diversified tourism source base and ongoing robust arrivals growth, the Dominican Republic is the Caribbean’s leading tourist destination. Being a leading tourist destination, several Investment Opportunities in real estate in the Dominican Republic are appealing to investors interested in doing business in Latin America and the Caribbean. As the largest economy in the Caribbean and the eighth-largest in Latin America, the Dominican Republic offers a sizable market, with several investment sectors ripe for greater development.
WHY INVEST IN DOMINICAN REPUBLIC REAL ESTATE?
The Dominican Republic’s residential property market has exploded in recent years, thanks to strong economic fundamentals, significant tourism growth, and the advent of luxury international and boutique hotels. Aside from its image as a tax haven, large lengths of sandy white beaches, and warm weather, foreign homebuyers are drawn to the island because real estate is still affordable compared to the rest of the Caribbean. A recently constructed one-bedroom apartment near the beach can be purchased for as little as US$150,000.
Because the Dominican Republic recognizes the importance of the tourist and real estate industries, as well as the need to maintain long-term foreign investment in both, investors should be attracted by the commercial climate and governmental support they get. In the Dominican Republic, there are no limits on real estate purchases. You do not need to be a resident or a citizen to do so, yet many people prefer to do so because staying in the nation for more than 90 days is required. Property prices in the Dominican Republic have risen in recent years as a result of increased tourism. Despite annual price increases of roughly 10%, this country remains one of the cheapest real estate markets in the Caribbean. According to the current Global Property Guide survey, average apartment prices in Puerto Plata have jumped by a stunning 23 percent. The price of larger flats increased the most.
On the purchase of real estate in the Dominican Republic, there is a tax of between 5 and 6 percent: 3.5 percent transfer tax and 1.5 to 2 percent lawyer costs. On properties worth more than $150,000, an annual property tax of 1% of the purchase price is due. In other words, if your property is worth $ 200,000, you will pay 1% of $ 50,000 per year, or $ 500. The Dominican Republic has a flat income tax of 27 percent. You must pay a 27 percent tax on your rental income if you rent your property. Individuals who own real estate must pay a yearly real estate property tax of 1% of the property’s value as calculated by the Dominican Cadastral Office, as long as the value exceeds the total exemption amount of DR$7,438,197 in 2019.
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International residents have no restrictions on purchasing property in the Dominican Republic, and the government actively encourages foreign buyers to do so. Incentives for foreign property investment include the following, according to the country’s tourism office:
- The receiving of tax-free pension income from overseas sources, as well as the moving of personal belongings into the nation, is assured
- Foreign buyers are free from paying property taxes by 50%.
- Exemption from taxes on dividends and interest income earned both within and outside the country.
- When the creditors are financial institutions regulated by Dominican financial monetary law, foreign buyers obtain a 50% tax exemption on mortgages.
- Household and personal objects are exempt from paying taxes.
- Exemption from property transfer taxes
- Developers are exempt from all national and municipal taxes for ten years, including the tax on the transfer of ownership to the first purchaser of a property.
Real Estate Markets of Interest in the Dominican Republic
Sosua
Sosua is growing in popularity as a retirement destination for Canadians, Americans, and Europeans. A significant factor was the year-round mild climate and low cost of living. Sosua has become a prominent real estate development locality in recent years as its popularity has grown and demand for homes for sale has skyrocketed. Many travel magazines have listed Sosua Beach as one of the top 10 beaches to visit. It’s a popular tourist destination for international visitors, because of its proximity to the Puerto Plato International Airport, which is only 4 miles away. Sosua is a multicultural city with foreigners from all over the world.
CABRERA
This typical tiny fishing community, located 80 kilometers from the Puerto Plata airport, has maintained its authenticity while benefiting from the Dominican Republic’s economic development, particularly in real estate, which remains a popular investment option for Europeans and Americans. New developments, such as the opening of an international airport (45 minutes from Cabrera), a marina, and luxury residential complexes, will infuse excitement and contribute to the development of this lovely community.
The Playa Grande golf course (10 minutes from Cabrera) is a fantastic 18-hole course that has been voted one of the world’s most beautiful golf courses. With 11 holes along the beach, it was designed by Robert Trent Jones. Everything from sprawling and luxurious villas in the nearby hills to fantastic condominiums with stunning beach views and direct access to the sand is available for sale.
Cabarete, like Sousa, has become a magnet for ex-pats from all over the world, and it is culturally diverse and laid-back. The real estate offerings are extremely similar to those in Sosua, and the pricing is comparable.
RIO SAN JUAN
Playa Grande is one of the fundamental seashores on your excursion to the Dominican Republic. This seashore is viewed as one of the most delightful in the entire country. It is a trademark for the ruddy shade of its sand and its warm waters and turquoise tones. Its wonderful perspectives are likewise extremely popular and much valued by picture takers because, notwithstanding the magnificence of its shore, the scene is substantially more embellished with the thick palm timberland and white precipices aside.
Agreeable and half-moon molded, Playa Caletón is one of the area’s top picks. Encircled by green vegetation and a rough scene, a few rocks have cut appearances of Taíno caciques which give a magical air. This seashore is effectively available from the fishing town of Río San Juan. The passageway is situated out and about between Rio San Juan and Playa Grande and the golf complex. A visit to this seashore is generally remembered for trips to the Gri-Gri tidal pond and the encompassing coasts
Please do not hesitate to contact us for further information regarding investment in The Dominican Republic. We are always here for your service and are keen to help you make a better decision.
