HOW DO I OWN A PROPERTY?
You can choose to buy a property in your personal name or in a corporate name. In either way you own that property with title, fee simple.
WHAT ABOUT PROPERTY INSPECTION?
You are free to request one, there are different companies that offer this service.
CAN A PROPERTY OWNED IN A CORPORATE NAME BE ASSIGNABLE?
Yes, the shares of the corporation can be transfered to a new owner and the new owner can b e another corporation or trust.
DO I NEED TITLE INSURANCE AND CAN I GET FINANCING TO PURCHASE A PROPERTY?
Title insurance is not mandatory, but it is available through different agencies and financing is available through different banks.
WHAT ARE THE PROPERTY TAXES IN THE DOMINICAN REPUBLIC?
The transfer tax is 3% of the value of the property and there is an annual property tax of approximately 1% of the assessed value of the home that is determined by the amount of square meters of the house and its appraised value, which is called “IPI”. If the property is owned by a corporation, the applicable tax is tax over the assets, but a company must pay the higher value of either the 1% tax over the assets or 25% over its net income. Companies that only own property are generally subjet to the 1% tax over its assets, which asset is normally the real estate.(Subject to governmental changes).
What are the costs associated with the transaction of owning a property and is there a deed at closing?
Closing costs is the fee charge by the attorney and when the transaction is a transfer of real property, the seller must provide the deed of title duplicate of owner (certificado de titiulo duplicado del dueño) as well as other documents required to record the transfer of real property and if the transaction is a transfer of shares then the seller has to provide the shares and the deed of title duplicate of owner.