Formalities Sale and Taxation Buy a property with peace of mind

On the seafront or overlooking the ocean or in the green mountains we help you find your land whether it is for the construction of a hotel, a resort or for a more private use. Make a real estate acquisition in the Dominican Republic and enjoy a much higher quality of life. With its unspoilt natural areas the Samaná Peninsula offers a compendium of everything that can be seen elsewhere in the country: mountains, rainforests, quiet villages, bays and dream beaches. The climate is a little wetter than in the rest of the country which favors a very rich vegetation. Las Terrenas, a village hidden under the coconut trees and open to the sea, seduces all visitors, there are beaches in the natural state where the white sand contrasts with the surrounding green forests. The Dominican Republic, a country where life is good. Political stability and favorable taxation offer a real attraction for this country. The main source of income for the country is tourism and the political will goes in this direction. This part of the island Hispaniola knows one of the most beautiful economic growth of Latin America and also a taxation of the sweetest of where an attractive property profitability. Are you looking for a safe investment with high profitability to build up retirement capital, to achieve a capital gain or just to give your children capital? We are your interlocutors! Real estate prices continue to rise, so returns on invested capital are very attractive. Supply is lower than demand, so villas and apartments with sea view or near the sea or "feet in the water" generate to their buyers significant rental income. All styles of villas coexist on the island: Caribbean, Caribbean, Balinese, California. The choice is varied and accessible for all budgets. You can also consult our portfolio of land to build, in hill with sea view or on the white sand beaches protected by the coral reef, for individuals or for promoters. The property may be registered in its own name or that of a company with digitalized title deeds and delineated (GPS demarcation) in accordance with Dominican law. A "deslinde" refers to a clear title that was issued after the property received the approval of the final judge certifying that it was properly examined and that its GPS boundaries and property boundaries were clearly defined and established at from the original title from before. Purchase procedure in the Dominican Republic Foreigners can very easily buy real estate in the country, they are subject to the same formalities as the Dominicans. Even if it is simple, it is better to surround yourself with competent people to avoid certain disappointments, for this we have at your disposal good lawyers and notaries with the most competitive fees and we are at your side to accompany you and advise you during all transactions. Two forms of purchase: in own name or through a Dominican company. The formalities for the acquisition of real estate are virtually identical depending on whether you make this purchase in your own name or through a local company except of course the constitution of the company beforehand. 1 / purchase in one's own name To begin a "Promise to Purchase" is established between the parties by a lawyer with a payment of 10% of the total amount. After an average period of 2 to 3 months, time required for your lawyer to collect the various documents and to carry out the formalities (Verification of the validity of the title deproperty of the contracted or registered, update of the taxes, verification of non mortgage, etc.), you sign the final deed of sale. The title of property is then given to you against payment of the balance of the transaction. The "sales contract" is signed and legalized by a notary. If you can not be present on the day of the signing of the definitive deed of purchase, it is possible to give your power to your lawyer. All acts are written in Spanish, the official language. 2 / the purchase through a company, three legal entities at your disposal: > Individual Business with Limited Liability (EIRL) with one natural person, no minimum for share capital. > Limited Liability Company or SRL with a minimum of two partners, a minimum capital of US $ 2,250. > Société Anonyme (SA), with a minimum of three members on the administrative board, a minimum capital of US $ 650,000. Other important points (whatever the legal form): > Inheritance taxes are very low, > No tax or banking link with your country of origin, > no surplus value in the Samana Peninsula unlike the rest of the country, > No tax declaration to make, in the country, for your rental income. The change of ownership is finalized after 30 to 45 days. Transfer fees of the property The Code Napoleon applies in the country certainly but with some nuances. The tax on the transaction of the property exists but it is modest: 1 / in your own name, you must pay a transfer fee, so the fees vary between 4 and 6% of the tax value of the property, including the fees of the lawyer / notary responsible for formalities (1 to 3% depending on the amount of the sale) and the transfer tax itself, 3.1% of the value assessed by the tax services of the DGII. It is calculated by the tax department and does not necessarily reflect the true value of your purchase (usually much less). You must add + 18% tax (VAT) on the total amount. If the beneficiary resides outside the Dominican Republic, inheritance taxes are subject to 4.5% of the assessed value of the estate. 2 / in partnership, you do not have to pay transfer tax. You simply transfer the Company which contains as sole asset, the good that you buy. So you avoid any problem in case of inheritance. So it is recommended to build a company for a cost of 1000 to 1500 us $. The costs of the deed of sale are the responsibility of the buyer, the agency commission to that of the seller usually. Annual property taxes A property tax called IPI applies each year, it depends on the tax value of the property. For a property in its own name, below 7,019,383 Dominican pesos (about 150,000 US $) there is exemption. Beyond you will pay 1% of the tax value minus the 150,000 us $. If the property is owned or registered on a business, that company pays an annual tax of 1% on the assets of the corporation. However, the amount of tax on assets paid by a corporation may be applied as a credit to its tax obligations. The following properties are exempted from paying a property tax: farm / rural properties, houses whose owner is 65 years of age or over (main house) and property owned by businesses that pay a separate tax on their business assets.