1. What are property taxes in the Dominican Republic?
Only in the last couple of years has the government started to collect property taxes. At the time of this writing the fee was 1% of the value of the property per year. (Properties with a valuation of less than $5M RD / $156,250 USD are exempt from paying property taxes)
2. What about transfer taxes when you buy property?
The standard we use for calculation purposes is eight percent (4.25%) of the purchase price.
3. Is insurance available?
Yes - Several reputable companies offer protection against loss from natural disasters, fire, flood etc. Title Insurance is advised and available in the Dominican Republic. (Fidelity National Title entered the market in 2007)
4. What utilities are available?
Same as the US or Canada. Electricity 110/220, water, cable, telephone, propane gas tanks 50 or 100lbs.
5. What is the cost to build a house, standard quality?
You can expect to pay at least US $45 to $50 per square foot. This will include Dominican ceramic tile floors, pine wood, or aluminum windows, standard bathroom and kitchen fixtures. Plans and gardening are extra.
6. How long does it take to build a house in the Dominican Republic Real Estate for Sale?
We generally say six to nine months. Many factors determine the timeline to complete a construction project, having adequate cash or financing prior to commencing the works, weather, size of the structure, play an intrical role in this matter to name a few. All materials are available here on the island.
7. What about furniture, appliances etc?
All the items necessary to furnish your new home can be purchased here in the country. To ship your furniture in containers is costly and time consuming. We do not recommend it !
8. How much do 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. All fees are negotiable, depending on the complexity of your acquisition, we can help you save time and money when evaluating your specific transaction. You will also pay transfer taxes.
9. How do I form a Dominican Company?
Your attorney does all this work. Filing a company and applying for a Dominican Residency are very similar in terms of the needed personal documentation from you. The fee to form a company starts at $1,900.00. Generally the yearly cost to maintain the company in good standing is approximately US$300.00.
10. Residency and a Passport from the Dominican Republic
While the Dominican Republic does not have an formal economic citizenship program, it does have an very inexpensive and simple process for both permanent residency and citizenship. Considering the cost involved we think it is one of the most economical ways to obtain a legal and official second passport. And, you don't have to relocate permanently to enjoy its benefits.
Some of the Requirements
Clients are advised to obtain 5 certified copies of their birth certificate prior to their arrival in Santo Domingo. You will not need all five copies, but it is a good idea. It is also highly suggested that a letter of good conduct from your local police department be obtained. While we have assisted clients that did not possess such a reference letter, it is a good idea to have a document indicating up-front that you do not have a criminal record in your home country. This helps with your own credibility. A to "whom it may concern" letter stating your lack of a criminal record is sufficient. Clients will also be required to take a general physical, chest x-ray and aids test, which is quick and inexpensive.
Upon initial completion of all paperwork for the first part of the process (residency), and approval, the client will receive a provisional residence card. This process can take anywhere from 60 to 90 days. This card is valid for one year. Once obtained, you will have the right to live and work in the Dominican Republic. You will also have the right to leave the country whenever you wish and re-enter with your temporary residence document (you will not need a tourist card or tourist visa to re-enter).
Also, at the same time your residency card is issued from immigration, you will receive your official residence card or "Cedula", which is valid for one year. The "Cedula" is the Dominican version of a US Social Security Number. Upon completion of that initial one year period, you will re-new your residence status and have it upgraded to Permanent Residency. Upon completion of this second period, you can become formally nationalized and obtain your Dominican Passport.
You would have obtained the immediate right to live and work in the Dominican Republic (or own a business), with a legitimate and official government issued passport after about 18 months from the date you started.
We can provide you with legal representation to assist you with this valuable service.
11. Banking: accounts, CDs, checking?
All are available in US Dollars and Dominican Pesos. Banks do vary in interest paid on CDs. Dollar accounts are in savings and CDs only.
12. Setback from ocean?
There is a sixty meter setback (60 meters or 196.8 feet) from the water line. This law is enforced however arrangements can be made which permit less distance.
13. How high can I build?
The maximum allowed on the north coast is eleven point twenty meters (11.20mts.) or approximately thirty seven feet (37ft). In some cases (below ground level) you can gain another floor. Throughout the Island there are amendments and exceptions to every rule, we can advise on a case by case, depending on the region of the subject property. The Government is also re-zoning in tourist areas, such as Puerto Plata's "Malecon", new buildings have been approved for seven floor construction to enable investors to return greater profits on smaller lots in the location.
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