Why invest in real estate in the Dominican Republic?

Real estate is one of the most attractive investments for the future in a country that depends mainly on tourism. Its strategic position in the Caribbean and internationally, together with the excellent conditions for investors, make real estate one of the most attractive future investments in a country that depends mainly on tourism. real estate investment in the Dominican Republic is one of the best decisions for those who wish to prosper in this market.

It is not without reason that many investors request the investor visa to start doing real estate business in the Caribbean paradise. If you would like to know the main reasons to invest in real estate, read on to learn all the details about this type of investment.

What is real estate investment?

Technically, there is no difference between investing in real estate or investing in real estate, except perhaps that the latter concept more clearly captures the nuance that you are not only buying a property or a unit built in a building, but you are also acquiring rights to a common part of the land on which the property is located.

That is to say, when you invest in real estate, you have the possibility of buy land, with everything attached to it, or without any construction at all, and build your own single-family home or building, or buy a unit in a building already built or under construction.

Buying land in the Dominican Republic, or an apartment already built?

Buying a unit in a building already built in the Dominican Republic entails important advantages, especially if this tourism project is already covered by the Confotur Law.

On the other hand, if you acquire land in the Dominican Republic, even if it is located in a tourist area, you would have to develop a project and apply for approval, which can delay the processes.

What are the advantages of investing in real estate in the Dominican Republic?

1. Growing market

The real estate market in the Dominican Republic will not always be the same. Prices will rise over time, there will be more housing shortages than now, the economy will probably continue to rise...

It is not the same to invest in real estate now than in 2040, so taking advantage of the trend of a growing market, which is also a reference for tourism in the Caribbean and internationally for its excellent conditions, makes you a pioneer investor, who knows how to seize opportunities at the right time.

2. High return on investment

Why buy an expensive property in Miami, when you can get a better one close to the beach in a place like Punta Cana? When it comes to investing in real estate, we should look at the return on investment or "ROI" of the property. profitability of real estate and not only in the price per square meter, or the total value of the property.

Considering also that the Dominican Republic is part of an island, and its space is much more limited, and considering also that its currency is much less strong than the dollar, there are many more possibilities to obtain a high real estate ROI, if you later decide to sell, or opt for vacation rentals.

Legal certainty and political stability

When you are looking for alternative real estate markets, don't be fooled by extremely cheap prices. Because there are countries where there are incredible opportunities, but bureaucracy and taxes can play a trick on you.

The legal security and political stability of the Dominican Republic is far superior to that of other countries in the area, and perfectly comparable to investing in any first world country. This provides transparency and confidence to real estate investors, who logically want the process to be clear and with total legal guarantees.

4. Low taxes

Buying a house with the intention of living in it is not the same as making an investment in real estate. Those who are looking for real estate opportunities, usually want to buy to rent, or resell after renovation or revaluation.

To achieve this objective, the ideal is not to have to wait too long, so buying land and building or to develop a tourism project can be enormously time-consuming, but it can also be a very attractive investment.

However, for a small or medium-sized investor who simply wishes to invest in apartments for rent, they can benefit from low taxes or even be exempt from some of them if your real estate investment is made in a project that is covered by the Confotur Law.

We are talking about having an exemption of Real Estate Transfer Tax (3%), exemption from property tax for 15 years, as well as exemption from income tax (ISR) for 15 years.

Would you like to know the conditions for doing real estate business in the Dominican Republic? Are you looking for opportunities to invest in real estate in Punta Cana? Talk to us now.