Investors in the Dominican Republic: what to consider

If you are investor in Dominican RepublicIf you are a real estate agent, it is important that you are informed about the characteristics of the real estate market in which you move.

To know the legal framework and the conditions for the foreign investors is key to avoid any kind of real estate transaction that could harm you. In reality, the real estate market in the Dominican Republic is reliable and has excellent legal security, so there is no reason for concern.

The real estate investors who wish to buy an apartment in the Dominican Republic should bear in mind, in any case, the keys to make a good investment.

(If you are looking for investment opportunities, before proceeding take a look at our proposals of real estate investment in Oasis Bay).

What to consider if you are an investor in the Dominican Republic?

The foreign investors in Dominican Republic should consider a series of aspects when making real estate operations in this country. Let's take a look at some of the most interesting points you should be aware of.

No restrictions for foreign investors

Unlike other markets, the Dominican Republic is a country that is very open to foreign investment. purchase by foreigners of real estate in the Dominican Republic. You will not even have problems in the acquisition of real estate by inheritance.

Everything is governed by Dominican law, specifically by the Constitution of the Republic and the Real Estate Registry Law 108-05so that your right to property is guaranteed.

You can even count on several incentives and benefits for the purchase of real estate, as we already mentioned when we talked about the taxes for buying real estate in the Dominican Republic or the Confotur Law.

2. It is important to analyze the location of the property

3. Consider the condition of the property before making a decision.

It is very important that the investors in the Dominican Republic to be informed and to know in depth the location of the properties in which they wish to invest.

It is not the same to invest in real estate in Punta Cana, which is the main tourist reference in the country, as it is to invest in other less frequented and less known locations. Nor is it the same to invest in the best areas of Punta Cana, as there are more or less frequented and those that are more or less close to the beach and areas of interest for luxury tourism.

A very important aspect for the investor in the Dominican Republic is to value the condition of the property.

Beyond investigating that the apartment is in good condition and assessing the need for a possible reform, if required, you must investigate the legal status of the property in the Registry of Titles. It is necessary to verify that the property can be transferred and that it can be used for the purposes desired by the investor, since for example not every property can be used to create a hotel or business.

Another aspect of great relevance is to investigate the environmental status of the property. All real estate projects must have the proper authorization according to the level of environmental impact of the project, which can range from the environmental license to the certificate of minimum impact.

4. Map out your investment strategy before you buy

5. Every purchase must begin with the promise of sale

The real estate operations in the Dominican Republic are attractive, but they must always be based on an investment strategy and profitability objectives. Consider not only the price of the property, but also the usual cost per square meter in the area where you want to invest.

To know the average price of DOP/m2 is not enough when determining your investment horizon because the areas can be very variable and the condition of the properties can be different. You should consider indicators such as the most frequent price per area.

If, for example, you are going to buy and sell real estate, you may find it more interesting to go for apartments or villas in residential complexesThese are well located, ready to move into and have a growth potential of 8-10% per annum in many cases.

What in other places is called the "contrato de arras", it is also customary in the Dominican Republic to close the agreement by means of the "contrato de arras". sales promisewhich is the first step in buying a property.

Whenever you want purchase an apartment, villa or condominium of any kind, you must deliver a deposit or reserve to the seller, and sign the promise of sale before a notary, who indicates that the documents have been signed in his presence.

These documents include the description of the property, the form of payment, the sale price, guarantees, causes for termination, deadlines and the process for transferring the property to the buyer.

Finally, once the term has elapsed, you will be able to finalize the definitive purchase of the property before a notary, so that you can continue advancing in your investment strategy, whether you wish to rent it or sell it, or carry out any renovation work.

From Vivantia Homes we encourage you to get to know our real estate projects, where you can discover high standing properties, with all kinds of amenities and a privileged location near the beaches in the best areas of Punta Cana.