Valuation of real estate in Dominican Republic

Is it better to profit from property development or tourist rentals?

When you are going to buy a property in Dominican Republic as an investment, you should consider where the income will come from and its relation with the costs. One of the possible ways to obtain benefits is through the valorization of the property; that is to say, by the capital gain that you would obtain when selling the apartment a few years later.

How important is the valuation of a real estate property in the Dominican Republic? Is it the only way to obtain benefits after a real estate investment, or are there other methods? We are going to explain it to you in a simple way.

Data on real estate valuation in the Dominican Republic

The Dominican Republic is a growing market. The constant attraction of new investors and the expansive growth of tourism have helped the revaluation of real estate.

We can see this through the real estate investment data in the tourism sector. According to some information, the average annual rate from 2010 to 2023 has been 13.4%, which highlights the good health of the sector and the excellent synergies between tourism growth and real estate development.

At the same time, foreign investment in the Dominican real estate sector has also been increasing at an annual average of 18.8%, which shows that foreign investors have great confidence in the Dominican real estate market.

Although these data are general and you should value each city and each area separately, it is very important that you consider the valuation of real estate in the Dominican Republic as a way to recover your investment and obtain long-term benefits.

Is it better to profit from property development or tourist rentals?

An important point to keep in mind is that not all apartments appreciate in value in the same way. And it depends not only on the area, but also on the type of property.

Buying a property is an investment. In many cases, if you buy old houses or apartments that require renovations to be sold or rented, this may involve high costs in order to revalue them.

In any investment you must take into account not only the purchase price of the property, but also the cost of taxes, the costs of renovations or the purchase of new appliances, cleaning, maintenance, insurance and financing, if you apply for a mortgage.

Therefore, you must consider all costs to correctly value the investment you have made, and from there, determine what would be the minimum profitable selling price for your ROI to be positive. Sometimes, the many costs of financing (mortgage interest), maintenance and renovations can reduce your profits. If the market does not evolve positively, the selling price of your property could stagnate, or have to be sold at a low price.

What is the best solution to reduce the risks of valorization? Undoubtedly, betting on a hybrid strategy and taking advantage of the very high potential of short-term tourist rental. Tourist rental allows you to make your property pay for itself on a monthly basis, if you manage to have a positive cash flow. But even if, adding all the maintenance expenses and rental commissions, the cash flow would be negative, the rental would allow you to cover an important part of the cost of the property in the long term.

Advantages of combining tourist rental and sale of your revalued properties

For example, imagine that your apartment cost $120,000 USD. If you rented it and got about $800 USD per month (after expenses), and you had it rented for about 9 months per year, you would get about $7,200 USD per year.

If you maintained that average over 10 years, you would have defrayed $$72,000 of the price of the apartment. Obviously these amounts would have to be subtracted from various costs that may arise over that period, but even in the worst case scenario, even with a negative cash flow in the short term, you could be reducing the cost of your apartment in the long term, and selling it in the future, thus earning higher profits.

By definition, buying an apartment in the Dominican Republic and renting it for short periods at a high price increases your chances of making the property profitable in the future, regardless of how much it appreciates in value.

Depending on the investment, you could further reduce your costs, for example, by renting your apartment using the marketing services of a hotel brand, which would allow you to

increase the occupancy rate and reduce the high cost of rental platform commissions.

In addition, if tourism continues to increase and demand grows, rental prices may increase and reduce your risks, or generate more cash flow for you.

In short, taking advantage of the potential revaluation of your apartment together with the benefits of tourist rentals, especially in places like Punta Cana, helps you reduce risks and maximize the profitability of your investment.

3. Fun and entertainment

4. Revaluation of apartments in Punta Cana

There are fast-growing areas in Punta Cana that are attracting numerous investors. Some areas stand out for their rapid growth and variety of entertainment areas, such as Uvero Alto, Bávaro or Bayahibe.

The lively nightlife in the Caribbean pearl makes it a great attraction for those who come looking for a variety of live music, entertainment and spectacular bars and nightclubs. This is the case of areas such as Puntacana Village, Playa Bávaro, Downtown or Cap Cana with its luxurious and exclusive atmosphere.

From 2021 until now, the average selling price of apartments has grown from almost PDO100,000/m2 at the beginning of 2021 to almost PDO124,000/m2 today.

This means that in just 3 years the average apartment price growth has been almost 24%, or around 8% per year.

These are undoubtedly excellent results for those who want to buy to sell. But this growth in the price of apartments also translates into a increase in the prices of hotels and tourist accommodations in Punta CanaThe company's business is highly competitive, as greater competition encourages greater profitability growth.

Despite the increase in the price of the apartments, their price is comparatively much lower than those of other tourist destinations, which provides a high return on investment and also high profits from rentals.

5. Unbeatable climate and natural environment

If your thing is investments in tourist properties, you must be clear that the climate and the environment of a place is key for people to want to stay there.

The good thing about places like Punta Cana is that it stands out because of its white sandy beaches and its pleasant temperature throughout the year, which helps to lengthen the tourist season. This place has an average temperature of 27.4º C, which is undoubtedly a great attraction for many tourists to come looking for good weather.

From Vivantia we invite you to know our offer of properties for sale in Punta Cana. Are you an investor and would like to buy properties in Punta Cana? Book your video call with us.

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How to obtain the rentista visa in Dominican Republic? 

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How to obtain the rentista visa in Dominican Republic?

There are different formulas for those who wish to retire in the Dominican Republic. At the beginning you will have to apply for a visa, and it is usually best to choose the one that best suits your situation according to your income. 

 Obtaining a visa is relatively easy for most foreigners who are planning their future in one of the best places in the Caribbean, both in terms of price and legal conditions, to enjoy the Caribbean. better quality of life. 

 Previously we told you about how to obtain the investor visawhich can be the ideal way to obtain residency for those who are going to do an internship. real estate investment that meets certain requirements. 

 Today we are going to tell you about another of the possibilities you have for apply for your visa in Dominican RepublicThe first step is to obtain an annuitant visa, which can be a very good possibility for those who receive a pension, dividends or interest from abroad, even if you have not yet purchased an apartment. 

What is the rentista visa in the Dominican Republic?

The annuitant visa in the Dominican Republic is a type of visa that is granted to foreigners who can demonstrate that they receive passive income or regular income from another country, so they do not need to work to earn income.  

This is the case, for example, of any person who receives a retirement pension, or receive income from dividends, bank interest or rents of other properties located in countries other than the Dominican Republic. 

What are the requirements to obtain an annuitant visa?

To be eligible for this visa, you must have a regular income of $2000 USD per month. 

In addition, you need a certificate or letter from the foreign institution from which your income originates to prove the continuity of such income. 

On the other hand, to apply for this type of visa you also need a valid passport with at least 6 months of validity and a certificate of no criminal record. 

 In addition, you must submit the application form, 4 recent passport-type photographs and a valid health insurance to cover your expenses in the Dominican Republic. 

Advantages of the Dominican Republic visa for renting a car in the Dominican Republic

There are a number of benefits that make it worthwhile for an annuitant to apply for this type of visa if he/she wants to reside in the Dominican Republic. 

1. You can live in the Dominican Republic without having to work.

You don't need find a job in Dominican Republic if you are able to prove that you receive monthly income from a pension, or from interest or rents. 

However, if you want to do so, you can do paid work, and this will be subject to taxes, but it would not be a problem for you to continue receiving your pension in your country. 

2. You have an easier time applying for permanent residency

This visa allows you to apply for a permanent visa one year has elapsed since you have been living in the Dominican Republic on a rentista visa. 

In addition, the residency application process is simple and fast, so you will save a lot of time on paperwork. 

 

3. 50% IPI exemption on your first home.

As a renter you will enjoy a 50% Real Estate Tax Exemption if you buy a home.  

However, we must inform you of a benefit that is even more attractive, whether you are a renter or not. And it is that if the apartment is considered as a tourist apartment under the benefits of the Confotur Lawwould be exempted from the IPI for 15 years, so you would only start paying the 50% IPI after 15 years. 

4. Tax exemption on dividends and interest

Not only those who receive a pension from abroad can apply for an annuitant visa, but also those who have a pension from abroad. dividends and interest that exceed the minimum amount.  

In this case, you must be clear that you will be exempt from taxes levied on the payment of dividends and interest. 

5. Your spouse has the same benefits

The tax benefits obtained by annuitants are also imputed to their spouses. Even in the event of your death, the rights you had are awarded to your spouse, in accordance with the Law No. 171-07, on Special Incentives to foreign source Pensioners and Annuitants. 

This is a great advantage for those who plan to move to the Dominican Republic with their spouse, which brings the same benefits to your estate.  

Are you a renter thinking of moving to the Dominican Republic? We invite you to consider our real estate opportunities for buy luxury properties in Punta Cana in some of the best areas. 

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How much does an apartment in Dominican Republic cost? 

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How much does an apartment in Dominican Republic cost?

The cost of an apartment in Dominican Republic is one of the aspects that many international investors may be wondering about.  

While the real estate prices in Dominican Republic can vary considerably depending on the type of apartment, it is important that you take into account the cost of the investment in order to also analyze the expected return on your investment properties if you are going to use them for tourist rentals. 

Cost of an apartment in Dominican Republic

Investing in apartments in Dominican Republic is often a tempting idea for many investors. 

It is a country with a high quality of life, but with lower costs than in other places such as the United States and other benchmark countries. 

In this sense, we can maximize the return on investment, since buying a property with similar characteristics in Miami or other similar places would be enormously more expensive. 

Here are some of the different prices you can find. 

Affordable apartment costs

The costs of apartments vary in different areas of the same city, and also if we talk about cities in the interior to reference places such as Santo Domingo or Punta Cana. 

The least expensive apartments can be found in cities such as Jarabacoa, Santiago or Samaná, with figures around US$$100,000.

Costs of tourist apartments in Punta Cana

If we go to the tourist areas, the prices of tourist-oriented apartments in high quality and high demand residential areas can be very high. between 200,000 and $400,000However, opportunities can also be found in the $150,000 range for more standard apartments. 

In terms of costs per square meter, the figures can to reach amounts in the range of $420 USD per square foot in excellent areas of Punta Cana. 

 Think that an investment in a luxury apartment of a large size in areas close to golf courses or the beach is usually perfectly suited to the needs of a large number of people. exceeding US$2-3 million and in more modest sizes. 

Costs of luxury apartments in Dominican Republic

Buy luxury apartments in Dominican Republic is much more attainable for people with savings who want to maximize the return on their investment. 

The most luxurious tourist apartments in the most exclusive areas of Santo Domingo and Punta Cana can be in the region of prices between US$1 million and US$3 millionThese figures are still much lower than what similar properties would cost in upscale areas of the United States. 

This enables investors to pursue a real estate strategy that allows them to maximize the return on their investment, since for what it would cost a quality apartment in the USA it would be possible to buy 2 or even 3 of more modest size in the Dominican Republic, if we move into the luxury apartment market, or even quite a few more if you want to make investments in less affluent areas. 

 

Is price the only important factor when buying an apartment in the Dominican Republic?

Clearly, price is an important factor, but what is really decisive is the return on the investment and the real estate asset quality in which we are investing and its future potential. 

 The properties in tourist hotspots such as Punta Cana, Punta Cana are getting stronger and stronger, due to the constant push of tourism, which is resulting in higher prices. 

The potential of revaluation of real estate is therefore a factor that must be taken into account. In addition, it must be considered that if the way to recover the investment is going to be through tourist rentals, it is essential to look at other important elements, such as the occupancy rate of tourist apartmentsThis will give us more flexibility and greater possibilities of obtaining high profitability. 

It should not be forgotten that the low taxes and the advantages granted by the Confotur Law can help maximize profitability even further. 

You should also consider that, if you are going to focus on tourist rentalThe area where you buy your apartment is much more important than the number of square feet of the property, because if they are located in less touristic areas, although the size and therefore the cost of the investment may be higher, it is not always an asset with the same advantages. 

At Vivantia Homes our recommendation is that you invest in luxury properties, located in tourist areas in order to get the maximum profitability from short term rentals and managed by hotel brands so that you can turn it into a passive income and not have to deal directly with the management of the property. 

Would you like to know about attractive offers in luxury apartments in Dominican Republic? Contact us now and realize your dreams of investing with low taxes and at more than reasonable prices.

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How to improve the occupancy rate of your tourist apartment in Punta Cana?

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How to improve the occupancy rate of your tourist apartment in Punta Cana?

Almost half of the 11 million tourists that visited the Dominican Republic last year 2024 entered through the Punta Cana airport. As the country's main tourist city and an international benchmark, it is logical that many real estate investors are wondering how to be competitive in order to improving the occupancy rate of its tourist apartments in Punta Cana.

To obtain a high profitability with a tourist apartment you should rent it for short periods, to tourists who come, visit the country and leave. This is much more profitable than long term rentals, but you need to ensure a good occupancy rate so that your apartment is not empty most of the year.

The more people who see your apartment and the more bookings, the higher the profitability. Let us give you some tips on how to improve your occupancy rate.

Keys to improve the occupancy rate of your apartment in Punta Cana

There are a number of factors that can influence more guests to book your tourist apartment in Punta Cana.

Some of them you should take into account as a real estate investor before purchasing your apartment, while others can be applied once you have already acquired it.

1. Invest in apartments linked to hotel brands.

The apartments that are part of a condominium in Punta Cana and are associated with hotel brands usually leave a high profitability per night. But not only that, they can also bring you high occupancy rates, as internationally recognized hotel brands have an easier time differentiating themselves in the market and getting bookings.

In addition, the hotel brands have their own sales channels, so you can benefit from both the quality and recognition of the brand as well as their marketing actions to attract new guests.

Build trust with good property management.

The property management in Punta Cana is a task that greatly influences the opinions and reviews of travelers. Many real estate investors believe that to obtain profitability it is enough to have the property, but in Punta Cana you must be clear that renting tourist apartments is a business, and everything counts.

Good cleanliness, efficient guest service, attending to any doubts that may arise and facilitating access to common areas, amenities and facilities will make it easier for people to be satisfied, recommend you and repeat another year, or generate good opinions that will convince other travelers.

3. Improve your property

Keeping your property in perfect condition and applying all kinds of improvements and amenities will help people feel more satisfied. In addition, it will help to attract more travelers who are attracted by its benefits and advantages.

In the end, small details can be a very important factor for more guests to be able to book your property in Punta Cana for your vacations and you can make them last longer.

4. Invest in apartments with high added value

Want more people to come to your property as guests and pay more? Apply a smart strategy. Investing in luxury properties in Punta Cana is what works best to combine a good occupancy rate with a high return on investment.

Start by choosing an apartment with a good location, with proximity to certain amenities, such as a private beach or golf course, and you can substantially differentiate yourself from other properties that do not have these benefits.

In addition, this will not only improve the occupancy rate of your apartment in Punta CanaIt will also allow you to charge more per night, so even if the occupancy rate is not as high as expected, the profitability may exceed your expectations.

 

5. Apply a good rental pricing strategy

Rent an apartment in Punta Cana requires that you take into account the competition. You must put a competitive price, but that is really according to the quality of the property, otherwise you would be losing profitability. This is very important to take into account.

Consider the rental price in the same area, with similar apartments, and establish a competitive strategy that will allow you to stand out, but don't give away the rent of your apartment either.

6. Listen to your guests and know your market

Even if you delegate the management of the property to the hotel brand to which the apartment is linked, it is important that you know your market and listen to your guests.

They can leave reviews and opinions about your apartment, or if you live in the Dominican Republic or visit it on occasion, you can visit the property and stay a few days to verify that everything is working properly and to know details that can be worked on to improve the guest's experience.

Are you applying the right techniques to improve your occupancy rate on your apartment for rent in Punta CanaAre you looking for real estate opportunities that can be highly profitable? Contact with us for more details.

Vivantia azúl

10 reasons to retire in the Dominican Republic

10 reasons to retire in the Dominican Republic

Many people dream of living on an island in the Caribbean when they retire. Maybe you will be one of them.

There are many reasons to retire in the Dominican Republic. A destination that has become increasingly popular and offers the most perfect combination of quiet environment, tropical climate and low taxes, with special advantages for pensioners, retirees or retired people.

Reasons to retire in the Dominican Republic

Here we are going to show you some of the main reasons why the Republic Dominican Republic may be the ideal destination that is waiting for you after retirement.

Low cost of living

The cost of living in the Dominican Republic may be relatively humble, but its services and amenities are perfect for enjoying a good quality of life.

In this sense, the cost-benefit ratio is more than advantageous for the foreign pensioner who decides to move to the Dominican Republic.

For much less money than you would pay in the United States and other American countries you can find a house, food and insurance in excellent condition.

Ease of obtaining permanent residence and nationality

Applying for legal residency in the Dominican Republic is much easier than in other countries. And even more so if you are retired and receive income from foreign sources.

In fact, you can obtain a permanent residence visa (RS) for a period of 2 years, renewable, directly, without having to have previously entered the country as a tourist.

In addition, once you have obtained permanent residency, it will be much easier for you to be eligible for the naturalization in Dominican Republic in less time.

 

3. Quality of life

The Dominican Republic has a enviable weatherwith some cities internationally famous for their incredible beaches, highlighting above all, the Punta Cana beaches.

The wide range of leisure activities offered by this city, with its mild temperatures throughout the year and the pleasant Caribbean sea breeze, provides retirees with a more than excellent space to enjoy their retirement.

It is also worth mentioning the wide variety of activities that can be carried out, from playing golf in some of the best golf courses in Punta Cana golf coursesYou can enjoy activities such as catamaran rides or excursions.

4. Foreign income tax exemption

One of the tax benefits offered by the Dominican Republic is that pensioners or retirees who receive foreign income in an amount not less than US$1,500 are exempt from taxation on such income.

This is included in Law 171-07 on Special Incentive for Foreign Pensioners and Annuitants, which offers foreigners who move to live in the Dominican Republic highly advantageous conditions.

5. Investment opportunities

Investment opportunities are growing significantly in the Dominican Republic. Remember that foreigners can buy property in Punta Cana and throughout the country.

If you receive a pension or income from abroad and you have capital to investYou can take advantage of some of the many possibilities in real estate investments to create an asset that allows you to generate extra income through tourist rentals, wait for it to appreciate in value and sell it, or leave it as an inheritance to your family.

6. Affordable health insurance and medical costs

Compared to the United States, health insurance and medical costs in the Dominican Republic are substantially less expensive.

This allows you to have access to good hospitals and private health care at lower costs than you would have to pay in the USA.

7. Good Infrastructure

In the Dominican Republic you can move around comfortably by car or public transportation, so it will not be difficult to get to the places you want to be.

You won't find the crowds of people that you find in big cities, and you also have the advantage of having some of the best beaches in the world. infrastructures at the highest levelWith an international airport of reference, as is the case of Punta Cana Airport, you can travel whenever you want in a comfortable and simple way and stay connected with the rest of the world.

8. Security

The Dominican Republic is a tourist country that receives more than 10 million people a year.It is a perfectly developed and booming country, and it is safe to live in, especially in the most touristic and developed areas such as Punta Cana.

In fact, in the Global Peace Index it is ranked 97th, well above other American countries such as the United States (132nd), Mexico (138th) and Colombia (146th).

9. Large expatriate community

As a tourist destination par excellence, you will find a wide variety of wide variety of nationalities who usually reside in the Dominican Republic. This will allow you to strengthen ties and meet people of the same nationality.

On the other hand, as an international and tourist destination, it will not be difficult to find people who speak English or Spanish (official language) anywhere.

10. Dominican hospitality

People in the Dominican Republic are open, friendly and friendlyThe city welcomes foreigners with open arms, and you will be able to integrate easily into a culture that combines tradition and modernity at the same time.

Come and enjoy the Dominican Republic! If you want, here you can find some real estate projects to buy your apartment in Punta Cana.

Vivantia azúl

Property management in Punta Cana, what to consider?

Property management in Punta Cana, what to consider?

One of the reasons why many investors are starting to look at Real Estate in Punta Cana is the ease of earning passive income.

Unlike other types of investments, such as business start-ups, which can take up a significant portion of our time, the real estate investments allow you to rent your property once you have purchased it and start generating profits from the very first moment.

However, the management of a tourist apartment What should you take into account to be able to delegate this task and thus be able to obtain benefits without having to dedicate a lot of time to it?

What is property management?

When you purchase an apartment, you are purchasing an asset, with appreciation potential and that you can also monetize through tourist rentals (or long term rentals, although less profitable).

However, managing a property takes time. You have to pay some maintenance expenses The property is located in the facilities, as well as to cope with the cleaning tasks and everything that is involved in owning a home.

There are a whole series of tasks related to property management:

  • Collect rents from your customers
  • Carry out maintenance and repairs
  • Receive tenants or guests of your properties when they rent out
  • Search for new tenants
  • Ensuring that your property complies with all regulations
  • Attend to any problem or need of your tenants/guests

But you should also keep in mind that if you purchase a real estate as an investment you are running a business, where there are customers (the tourists who rent your property),

so it is essential that your property can have visibility so that you can maximize bookings and overnight stays.

This implies that the mere fact of buy a property in Punta Cana in your name is not synonymous with a passive business... unless you can delegate the tasks of property management and sales to a hotel brand.

Advantages of delegating property management in Punta Cana

There are investors who have a fixed idea from the beginning. They acquire a apartment in Punta Cana without being very informed about the profitability possibilities, guided by their intuition or previous experience as an investor.

Sometimes, it is only done with traditional rentsignoring the high potential of tourist rentals.

This is a serious mistake, since the revenues generated by the long-term leases are lower than tourist rental income for short stays, especially in places such as Punta Cana.

The result?

That the costs of the management of your property end up significantly reducing your profits. On the contrary, investing in an apartment or unit in a condominium that is associated with a hotel brand allows you to.

  • Fully delegate the management of the property and take care of your clients.
  • Handle administrative tasks related to the management of tourist properties.
  • Leverage the sales channel and marketing capabilities of recognized hotel brands to achieve a higher number of bookings.
  • Have much more free time to take advantage of the benefits of Real Estate, without having to take care of the management of your properties.

Ultimately, investing in a condo hotel associated with a hotel brand means that your investments will be more profitable.nvestments in Punta Cana real estate can be much more passive businesses than they actually are. It also allows you to more quickly professionalize your business strategy to attract tourists and maximize revenue, at a lower cost in commissions than short-term rental apps.

Many real estate investors appreciate being able to investing in Punta Cana real estate without the need to be present continuously for the day-to-day tasks of a real estate business, since it is common that many investors are constantly traveling and you do not want to be tied to one place.

How does Vivantia help you generate passive income with your real estate?

At Vivantia we help you to choosing your real estate wiselyThe company's main objective is to provide you with the best units in prestigious areas that can generate high returns.

On the other hand, the apartments that can be found through us have the advantage that, being associated with a hotel brand, you can completely delegate the ownership, thus reducing the time required to maintain a hotel. real estate business in a country like the Dominican Republic.

In this way, we are sure that you will enjoy your real estate properties more as it is a more passive type of business, which in turn will allow you to scale more easily and have the financial freedom you desire.

Request now more information about our real estate investment opportunities in Punta Cana, booking a video call with us.

 

Vivantia azúl

Income Tax (ISR) in the Dominican Republic: advantages for the investor

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Income Tax (ISR) in the Dominican Republic: advantages for the investor

One of the issues that may be of concern to the investor in Dominican Republic Will I have to pay taxes? Pay Income Tax (ISR) Is there any kind of advantage for those who invest in the country?

As we know you are interested in this topic, we will explain to you what is ISR and what are the advantages you can obtain as a foreign investor if you are thinking of buying apartments in this paradisiacal Caribbean country.

What is Income Tax (ISR)?

The Income Tax is the tax levied on income earned by individuals in the Dominican Republic, as is the case in many other countries.

All the information about taxes in Dominican Republic you will find it in Law 11-92, of December 31, 1992.

May 1992, which is also commonly known as the Tax Code. Taxes must be paid to the Dirección General de Impuestos Internos (DGII), which is the agency in charge of taxes in the Dominican Republic.

 

The ISR is a tax intended to support government expenditures and is paid progressivelyThe taxable income is calculated according to income brackets. To give you an idea, these were the brackets for the year 2024:

Rentals up to RD$416,220.00

Tax exempt

Rents from RD$416,220.01 to RD$624,329.00

15% from surplus of RD$416,220.01

Rents from RD$624,329.01 up to RD$867,123.00

RD$31,216.00 plus 20% of the excess of RD$624,329.01

Rents from RD$867,123.01 and upward

RD$79,776.00 plus 25% of the excess of RD$867,123.01

It is important to be clear that in the Dominican Republic there are two types of ISRThe tax rate is 27%, which is paid by individuals and 27%, which is paid by legal entities or companies, although in the latter case the net income (after expenses) is taxed.

Do foreign investors have to pay Income Tax (ISR)?

One of the issues that you may have doubts about is whether you will need to Pay Income Tax (ISR)even if you are a foreign investor.

In order to do so, it must first be taken into account that ISR is only levied on income generated in the Dominican Republic. and persons who are tax residents in the Dominican Republic.

This means that if you are a foreign investor and you apply for residency or even acquire the naturalization in Dominican RepublicIf you have income from abroad, it will not be taxed for income tax purposes.

Remember that to be considered tax resident in the Dominican Republic you need to spend 183 days a year in the country. In case you spend less than that time in the Dominican Republic, you will not be considered a tax resident.

In case you are not tax resident in the Dominican RepublicA fixed withholding is made, depending on the type of income in question. In the case of dividend income, it is taxed at 10%, while income from professional services fees is taxed at 27%,

You should keep in mind that the financial incomeWhether you are a Dominican national or only a resident, even if they are of foreign origin, they must pay ISR. That is to say, if you transfer your tax residence to the Dominican Republic and receive income from stocks, bonds, certificates of deposit, etc., they will be taxed, even if they come from a foreign source.

On the other hand, you should keep in mind that pensions received from abroad are not subject to income tax.It may be a good option for you to retire in the Dominican Republic.

How to save ISR if you are a real estate investor in the Dominican Republic?

Many real estate investors have decided to to set its sights on the Dominican Republicwhere they have one or more apartments from which they receive regular income from tourist rentals. Remember that foreigners can buy property in Punta Cana and the Dominican Republic without any problem.

These are incomes that are received and must pay ISR, although the brackets are applied on the net profits (yields).

However, there are many investors who can saving on Income Tax (ISR) in the Dominican Republic by investing in projects that benefit from the Confotur Lawwhich allows you to be exempt from ISR for a period of 15 years. A period long enough to capitalize and consolidate your business in the Dominican Republic in the long term, so if you are thinking of investing, it is worth looking into this type of investment.

Would you like to learn about real estate opportunities that can benefit from the Confotur Law in order to establish your residence in the DR and save on income tax?Talk to us!

Vivantia azúl

Advantages of investing in condominiums in Punta Cana 

Advantages of investing in condominiums in Punta Cana

What are the advantages of investing in condominiums in Punta CanaWhy should you consider this type of real estate investment if your objective is to orient your strategy towards tourist rentals? 

A real estate investor should consider the type of real estate in which it is more convenient to invest in order to have a higher profitability. 

 In addition to single-family homes or apartments in apartment buildings, a very common option for investing in Punta Cana is the investment in condominiums. 

What is a condominium?

A condominium is a joint ownership, in which several persons own a real estate property under a joint ownership regime. Generally, these are tourist buildings in which units or apartments can be acquired, and where certain common areas are shared.  

Each condominium owner has his or her rights and obligations, and one of the advantages is that you can have access to higher quality properties with luxurious facilities in the garden, pool, gym or private beach areas. 

Each co-owner of a condominium owns one percentage of the condominiumand has the right to transfer it, rent it or leave it to his heirs. 

Advantages of investing in condominiums in Punta Cana

Condominium investment is one of the most important Real Estate trend very common in Punta Cana, where the key is to bet on investments in the most privileged and luxurious areas in order to obtain a higher return on real estate investments. 

 Being a tourist and beach destination of reference throughout the Caribbean and internationally, everyone who seeks to obtain profitability for tourist rentals knows that it is not so important the amount of square meters of the property, but the amount of square meters of the property that is important. the location and the quality of the condominium units what matters most when it comes to renting. 

Generally, the housing units of a condominium will be rented for short periods of time, so ideally they should be able to offer good value for money for the investor wishing to enter into this type of business. 

Benefits of investing with condominiums in Punta Cana vs. single-family homes

While it is possible to find larger or smaller apartments in a condominium, the advantage of this type of property is that the users will be able to enjoy: 

  • A better location for your accommodationThe hotel is close to the best areas in Cap Cana, Downtown or Cana Bay. 
  • Access to luxurious facilities and amenities, such as playground, private beach, swimming pool, gym, coworking area, etc. 
  • Possibility of acquiring properties in branded condominiums and hotel management, which helps maximize sales, save time in property management and delegate administrative management. Discover the advantages of invest in condo hotels in Dominican Republic. 
  • Possibility of investing in areas that are subject to the benefits of the Confotur LawThis is not always easy if you are buying single-family homes in areas that cannot benefit from this regulation. 

 On the other hand, investing in houses or single-family homes can be a more risky type of investment, since, despite the fact that they can be found in the market, it is not always easy to find the right investment. luxury homes in Punta CanaHowever, the location is not always ideal for those who wish to develop a strategy oriented towards tourist rentals, but rather for long-term rentals. 

 Long-term leases, although they can be a good investment strategy, are less profitable and tend to generate higher maintenance expensesThe deterioration of the houses is more rapid, which means that renovations will have to be carried out in the future.

In this regard, it should be noted that a luxury single-family home in a bad location may limit the number of bookings and overnight stays per year, as you are in a highly competitive environment with luxurious resorts in the most exclusive areas of Punta Cana. 

 

Are condominiums in Punta Cana a good investment?

The Punta Cana tourism market is in full swing, as it is the main gateway to the Dominican Republic, with an airport that is an international reference for those wishing to visit the Caribbean. 

It is for this reason that developing an einvestment strategy oriented towards the purchase of condominium units The expected profitability of this type of property is higher, as these properties are located in environments specially designed for short-term rentals to tourists and with all amenities included, in close proximity to some of the best golf courses in Punta Cana. 

If you want to find opportunities in Punta Cana for investing in condominiums or condo hotelsWe can provide accurate and detailed information so that you can find some of the best deals on the market and achieve your profitability goals as a real estate investor in the Dominican Republic. Contact us now and book a video call. 

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What is an investor visa in the Dominican Republic? 

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What is an investor visa in the Dominican Republic?

One of the advantages of the Dominican Republic for investors is that they can obtain residency by investment, if a series of requirements are met. 

Obtain the residence visa in Dominican Republic can be a good idea if you wish to reside in the country for a long term, or to continue to carry out new investments and real estate business on the island. 

This strategic measure is undoubtedly of great interest when it comes to attracting potential customers. real estate investors to the island. 

In this post we will show you what is an investor visa in the Dominican Republic? and what you must do to achieve it. 

What is the investor visa in the Dominican Republic?

Residence visa in the Dominican Republic for the following reasons real estate investment is a type of residency granted to foreigners who invest in real estate in the country.   

This visa is specially designed to attract international investors interested in settling or spending long periods of time in the Dominican Republic while contributing to the economic development of the country. 

The residence visa in Dominican Republic enables you to: 

 

  • Legal residence in the country 
  • Access to an identity card 
  • Entering and leaving the country with relative ease 
  • Possibility to bring family members 

In addition, it can be a stepping stone to accelerate the path towards naturalization in Dominican Republicor obtaining Dominican citizenship. 

Requirements to obtain a residence visa for investment in the Dominican Republic

The requirements to obtain the residence visa for investment in the Dominican Republic You can find them on the website of the General Department of Migration. 

 All that is requested is: 

  • You must have a passport from your country, valid for at least 6 months. 
  • Letter of Incorporation to the Foreign Investment Program 
  • Original Birth Certificate, unsealed. 
  • 4 passport size photographs. 
  • Certificate of no criminal record in your country of origin or where you have resided in the last 5 years. 
  • Marriage certificate, proof of cohabitation or declaration of bachelorhood, apostilled or legalized. 
  • Guarantee policy with Seguros Reservas, which ensures that you will not be dependent on public funds. 
  • Medical examination in an institution authorized by the General Department of Migration. 

 In addition, you must have the financial resources to reside in the country and to carry out a real estate investment of at least $200,000 USD in real estate, in addition to 2 years residing in the country. 

 Someone who does not make such an investment, or who does not fall within the categories of retiree/pensioner or annuitantIn order to obtain permanent residency, you would have to follow the normal procedure to obtain permanent residency, which is to apply for a temporary Dominican residency and renew it every year until 45 days before the 5 years of residency are completed, after which you would be able to obtain permanent residency. 

Other types of visas in Dominican Republic

To travel to the Dominican Republic, there are different visas and it is important to know the difference in order to know what your legal situation is and how you should act to be able to make real estate investments in the country. 

These are the types of visas in Dominican Republic: 

 

  • Tourist visa: It can be a single or multiple visa. The single visa allows you to enter the Dominican Republic only once, while the multiple visa allows you to stay up to 60 days and enter more than once during the year. 
  • Business visa: is intended for those traveling to the country for the purpose of conducting business activities, such as meetings or negotiations, with no intention of formal employment in the country. 
  • Business visa for employment purposes: These visas are granted to persons who have an employment contract with a private or public company in the country. There are also special cases for this type of visa, such as the free zone visa or the multinational or transnational company visa. 
  • Student visa: tYou must be able to prove that you are enrolled in a training institution in the Dominican Republic, as well as meet other requirements. 

 Generally, investors are not in either of these cases, but must apply for an temporary investor visa. This gives them permission to enter the country in order to make their investment.  

Generally, it is only necessary for them to stay for one year, and once they can prove the investment made, they will be able to qualify for the permanent residence as an investor. 

Other ways to obtain residency in Dominican Republic 

In addition, even if you are not an investor, you should be aware that there are other ways to apply for a residence visa in Dominican Republicfor example: 

  • To be a rentier: if you have personal documentation proving that you live on your income (rental contracts, stock market investments, etc.), you may also qualify for residency through this route. 
  • Being retired: if you are retired and receive an income from the State in your country of origin, you are also eligible for residency in the Dominican Republic if you meet certain requirements. 
  • Family reunification: if you have a close family relationship, you can also obtain residency by family reunification. 

From Vivantia Homes we invite you to take the most convenient and easy way for you if you want to to obtain residency in the Dominican Republic.  

However, you should know that obtaining a temporary residence is relatively simple and allows you to make your first real estate investment on the island, and later opt for permanent residency and naturalization if you wish in a quick and easy way. 

 Would you like to know our real estate projects and investment opportunities in Dominican Republic? Write to us now! 

 

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What is the Real Estate Wealth Tax (IPI)? 

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What is the Real Estate Wealth Tax (IPI)?

Knowing the taxes you have to pay when investing in an apartment or real estate in the Dominican Republic is essential for your financial planning. 

 The tax payable in the Dominican Republic on real estate is called the "real estate tax". Real Estate Wealth Tax (IPI). 

 In this post we will show you what IPI consists ofThe following table shows how much you have to pay and what advantages foreigners have when investing in housing in the Dominican Republic. 

What is the Real Estate Wealth Tax (IPI)?

This is an annual tax, applicable to individuals and trusts, which is paid according to the total amount of real estate assets taxed. 

Here it is important to understand that the encumbered assets is only that which has no exemption, as for example in the case of the Confotur Law. In addition, it is only applied to the value of the real estate when the total sum exceeds the amount of RD9,860,649The total cost of the project is approximately $179,000. 

You should bear in mind that the IPI is only levied on real estate used for industrial, commercial and professional activities, dwellings and urban plots, but not on rural real estate. 

When do I have to pay the Real Estate Wealth Tax?

The IPI Affidavit must be carried out within the first 60 days of the fiscal year following the year in which the events that obligate the individual or trust to pay IPI occur. 

This means that if during one year you purchase an apartment worth US$500,000, for example, you will have to pay the IPI Statement in the first 60 days of the following year. 

 In addition, payment must be made in two installments. The first installment is due before March 11 of that year and the second installment is due by September 11.

Who is exempt from paying IPI?

There is a whole series of exemptions from which it is possible to benefit in order not to have to pay the Real Estate Wealth Tax in the Dominican Republic. 

 

Individuals over 65 years of age

If you receive foreign income

If you are over 65 years of age and you have a home that constitutes your only real estate assets, you will not have to pay the Real Estate Wealth Tax. 

In case you are an annuitant and at least 50% of your income comes from abroad, you would also be exempt from IPI. 

Properties subject to the Confotur Law

Real estate of equal or lesser value of RD$ 9,860,649.00

Individuals who own real estate that may benefit from Law 158-01 (Law 158-01) (Law Confotur), they would also not have to pay Wealth Tax. 

As noted above, real estate properties with a value less than this figure do not require the payment of IPI. You should keep in mind that IPI is paid on the sum of the real estate value of all your taxable real estate properties, therefore, IPI is paid on the sum of the real estate value of all your taxable real estate properties. that if you have two or more properties and all of them do not add up to this amount, you would not have to pay the tax either. 

Properties intended for agricultural improvements or located in rural land

 Although it is not the most common option among foreign investors, you should bear in mind that if you buy real estate for agricultural use, you will also be exempt from the tax.

How to calculate the IPI?

It is very simple, you only have to add up the total value of all your real estate properties in Dominican pesos, and then subtract the value of the RD$ 9,860,649.00 exempted. 

On the resulting figure, you must apply the percentage of 1% annual IPI, and that would be the amount that you must pay in concept of the Tax on the Real Estate Patrimony in Dominican Republic, as long as you do not meet the requirements to be exempt. 

What other taxes are paid on real estate investments in the Dominican Republic?

If you are interested in investing, there are other real estate taxes in Dominican Republic that you should know and be informed about. 

Meeting tax payments and complying with legal requirements is the basis for a good tax return. investment strategy in the Dominican Republicand to avoid any type of legal problem. 

 However, keep in mind that one of the main attractions for do Real Estate in Dominican Republic is precisely the tax benefits for investors. 

In this line, from Vivantia Homes we offer you the best investment proposals and real estate projects with high profitability that can help you build a patrimony that will secure your future. 

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