Buying a House in the Dominican Republic – The Ultimate Guide
We put together this guide for investors considering buying a house in the Dominican Republic.
Whether you are thinking of investing in a home in the Dominican Republic primarily as an investment with the potential to generate passive income or you are looking for a property to keep for your own private use, this guide is designed to cover all aspects of acquiring a house from finding homes for sale in the Dominican Republic through to the details of the purchase process.
The ultimate guide to buying a house in the Dominican Republic
Contents
Is Buying a House in the Dominican Republic a Good Idea?
How Much Does it Cost to Buy a House in the Dominican Republic?
Can Foreigners Own Houses in the Dominican Republic?
Where are the Best Places to Buy a House in the Dominican Republic?
How Do you Buy a House in the Dominican Republic?
Getting a Mortgage in the Dominican Republic
Investment Opportunities – Explore House for Sale in the Dominican Republic
Is Buying a House in the Dominican Republic a Good Idea?
Buying real estate in the Dominican Republic offers investors the opportunity to purchase property at a comparatively affordable price in one of the world’s most alluring destinations.
For buyers looking for a vacation home in the sunshine, the Dominican Republic is hard to beat. The country has some of the most beautiful beaches in the world as well as a lush rainforest-covered interior with soaring green mountains and waterfalls that cascade into clear pools. The Dominican Republic offers tremendous diversity, offering something for everyone. From a wide variety of water sports, snorkelling, diving, golf and adrenaline-fueled adventure activities through to world-class shopping, dining, concerts and galleries, the entertainment options on offer in the Dominican Republic are practically unmatched in the region. This diversity offers home owners an unsurpassed lifestyle.
For many of the same reasons, buying a house is a great idea for those thinking about living in the Dominican Republic full time.
For investors looking to purchase a house with a view to generating income, the Dominican Republic is an equally sound choice. The country is the Caribbean’s most visited destination, each year attracting approximately 5 million overseas visitors. The huge flow of international tourists provides home owners with the opportunity to earn significant income via the rental market.
With interest in real estate in the Dominican Republic remaining high, home owners are also set to benefit from steadily rising property values in the most sought-after areas.
For more details, please read our guide to investing in the Dominican Republic.
How Much Does it Cost to Buy a House in the Dominican Republic?
The cost of houses in the Dominican Republic varies according to various factors such as location, size and perceived value.
Prices range from approximately US £180,000 to $200,000 for a villa in residential developments in well established areas such as Cabarete and Sosua in the northern Province of Puerto Plata up to US $5 to $10 million dollars for a luxury houses in a prestigious resort communities such as Punta Cana, Cap Cana and Casa de Campo in La Romana.
Beachfront homes for sale in the Dominican Republic typically start at US $550,000 to US $600,000 in locations such as Samana on the spectacular northern coast.
Can Foreigners Own a House in the Dominican Republic?
Yes, foreign nationals can buy houses in the Dominican Republic and the Government of the Dominican Republic welcomes foreign investment.
There are no restrictions on foreign buyers owning a house in the Dominican Republic and foreign buyers enjoy the same rights as Dominican citizens, including the right to buy homes for sale on the beach.
Unlike in many other countries in the Caribbean and Central America, foreign buyers are not required to obtain any kind of license or permit in order to purchase property in the Dominican Republic including houses.
In fact, the country offers a range of incentives for foreign buyers looking to retire in the Dominican Republic.
Houses can be purchased in the name of an individual or a corporation which can offer tax benefits and accelerate the sales process.
Where are the Best Places to Buy a House in the Dominican Republic?
That depends very much on your personal preferences and objectives.
For beach lovers who want to be close to the action, Punta Cana, Cap Cana and La Romana are very popular choices. Home to several of the region’s best oceanfront golf courses, these destinations are also ideal for golfing lovers.
Fans of surfing, check out Cabarete which is one of the world’s top surfing destinations.
For those in search of a tranquil spot to get away from it all surrounded by unspoiled natural beauty, be sure to take a look at beautiful Las Terrenas in Samana which offers some of the most beautiful beaches in the Caribbean.
Buyers in search of traditional charm, look no further than the Zona Colonial (Colonial Zone) of the capital Santo Domingo where historic homes in this emerging cultural destination occasionally come on to the market.
For more details, please read our guide to the best places to buy property in the Dominican Republic.
How Do you Buy a House in the Dominican Republic?
Buying property in the Dominican Republic is a relatively straight-forward process. Below we have outlined the typical process in the case of a new construction house.
Once a buyer has found a property he/she wishes to purchase and his/her offer has been accepted by the seller, the buyer should engage a reliable local law firm to conduct a title search and ensure there are no legal issues with the property.
Assuming there are no legal issues, the law firm will draw up a purchase agreement which must be signed by both the buyer and the seller.
The purchase agreement will outline the details of the transaction including the agreed price and payment terms. The buyer will typically be required to make payment of a 10% deposit to secure the property.
The buyer will need to engage a local notary to assist with the transaction.
The buyer will then need to transfer the balance into an escrow account held by the notary until such time as title to the property is transferred to the buyer and registered in the Dominican title register.
For more detail on the purchase process, please see our guide to buying property in the Dominican Republic.
Getting a Mortgage in the Dominican Republic?
It is possible to buy a house in the Dominican Republic with cash or a mortgage, however, please note that, in the case of new construction houses, cash buyers – in particular those paying up front – may benefit from a discount on the asking price.
Several reputable local banks offer mortgages to Dominicans, residents and foreign buyers. Banks may lend you up to 60% of the property’s value.
As you would expect at home, upon receipt of your application the financial institution will conduct typical checks to assess your suitability for a mortgage.
Should your application be approved, you should expect interest rates to be a little higher than in the USA, Canada or Europe. Mortgage terms tend to be in the region of 15 to 20 years.
Investment Opportunities – Explore Houses for Sale in the Dominican Republic
Ready to begin your search for houses for sale in the Dominican Republic?
To find investment opportunities from across the country from Punta Cana to Las Terrenas, explore homes for sale in the Dominican Republic on our website.
Please note that our website only showcases a sample of the houses and villas available.
Contact 7th Heaven Properties, the Luxury Caribbean Property Specialist, to explore the full range of investment opportunities in the Dominican Republic.