The Dominican Republic Property Buyers Guide

The buying process here in the Dominican Republic is very straightforward and more transparent than in many other countries. Once you have chosen the villa or apartment you want to buy and agreed upon the purchase price, your lawyer will draw up a conditional contract. This contract sets out details of the seller, the details of the buyer, the exact details of the property being sold and the agreed price. This contract is signed by all parties and at that point a deposit is payable, this is normally 10% of the purchase price. The contract will also include the agreed “closing” date which is when the balance is payable. On the agreed closing date you sign the final contract and the lawyer can begin the process of transferring the title into the buyer’s name.
The legal costs can vary between 1 & 2% of the purchase price. We can put you in touch with a reputable local lawyer who will only charge 1% for Watson Homes clients, although you have every right to use any lawyer of your choice.

You should also be aware that there is a one off “property transfer tax”, which is 3% of the assessed value, this value is normally lower than the purchase price. Your lawyer can confirm the exact figure.

 
For property with an appraised value of more than 5,000,000 pesos ($156,250 US approx) there is an annual tax of 1% of the amount that is in excess of the 5,000,000. Therefore if a property has an appraised value of 7,000,000 pesos ($218,750 US) you would pay 1% of 2,000,000 pesos, which would be 20,000 pesos ($625 US).

These calculations are based on an exchange rate of 32 pesos to the US dollar, which can fluctuate. Here at Watson Homes we are committed to providing our clients with the highest level of service possible to make it a straightforward process to turn your Caribbean dreams into a reality. If you have any further questions, please contact me with the form below or call me on 001 809 5711748 and GET THE SERVICE YOU DESERVE!