It is normal that the buyer pay for all closing costs such as attorney fees transfer taxes, etc. approximately 7% to 8% of the purchase price. There are a number of government fees and taxes related to this process, some are fixed fees whereas others relate to or are a direct percentage of the transaction amount. There are situations where tax exemption can occur, but it is important to find out where this is legally the case. The best thing to do is speak with us to learn what your options are for the particular property you are interested in purchasing.
1. What about transfer taxes when you buy property?
It is normal that the buyer pay for all closing costs such as attorney fees transfer taxes, etc. approximately 7% to 8% of the purchase price. There are a number of government fees and taxes related to this process, some are fixed fees whereas others relate to or are a direct percentage of the transaction amount. There are situations where tax exemption can occur, but it is important to find out where this is legally the case. The best thing to do is speak with us to learn what your options are for the particular property you are interested in purchasing.
2. What are property taxes in the Dominican Republic?
Only in the last couple of years has the government started to collect property taxes. Basicly it depends upon the value of the property 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 0 (zero) annual property taxes. If the home is worth more than that amount, you pay 1% of the value over and above RD$5 Million Pesos (or US$150,000). If you purchase raw land or undeveloped land, then in that case there is an annual property tax calculation regardless of the value. In our cabarete real estate listings you will find a large number of middle class home or luxury apartment for less than 5 Million Pesos, so you will not have any annual tax payments on your cabarete real estate.
3. Can I, as a foreigner, own property in the Dominican Republic?
Yes, there is no restriction. 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. Recent legislation passed in the Dominican Republic has also strengthened the legal rights of foreigners as it pertains to property ownership and investments inside the country. You may use a cabarete real estate purchase as proof of local economic solvency as it pertains to the residency application process as well.
4. Is title insurance available in the Dominican Republic?
Yes. Stewart Title, a US company that is well known to many Americans. While obtaining title insurance may offer peace of mind for many buyers, regardless of whether or not you decide to purchase title insurance or not, you should always conduct a title search by a trusted representative. Of course you will not need to spend any additional money when you purchase your new property with John Kornbluth Cabarete real estate.
5. How much do dominican attorneys charge to escrow a purchase?
The standard fee is one to two percent (1% to 2%) of the purchase price This will include title search, transfer of title, attorneys fees,etc.. Other work is on a case by case basis. A Dominican residency worth approx. US$1.300.00 Please negotiate with your lawyer and get it in writing what they will do before you commence any work. In many cases it is useful to establish a Dominican Company that will own your property. Anyway its will be 100% yours as you will be the 100% shareholder from your company of course. Your attorney does all this work. The fee to form a company starts at US$ 1200.00. Generally the cost to maintain a company in good standing is approximately US$350.00 per year.
6. What utilities are available?
Same as the US or Canada. Electricity 110/220 Volt 50 Hz at the North Coast.Electrical service has improved greatly Electricity stills goes off from time to time depending on where you live. Some areas have 24hr circuits.
Water: No problem with the water supply in most areas. Also well water is an option however not for drinking. Always use bottled water for drinking. Cable TV at the north coast over 40 english based channels such as CNN, HBO, TNT, MTV....(all this for 11 USd monthly). The most advanced Telephone system in the Caribbean biggest Provider Codetel also GSM System provided by Orange, Internet ADSL Flash and many WIFI access points in restaurants and internet cafes on the north coast. Propane gas tanks 50 or 100 lbs. Good Infrastructure with several international schools, Supermarkets with international selection, A lot of bars, restaurants, hardware stores, Boutiques etc
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