Are you thinking about buying REAL ESTATE in the DOMINICAN REPUBLIC? It’s normal to have many questions about where to start, what are the best strategies, or where to find the best deals when buying real estate in the DOMINICAN REPUBLIC.
If you’re looking for real estate advice before purchasing real estate properties in the DOMINICAN REPUBLIC, this guide will point you in the right direction. Here are 3 important questions to ask and get started on the right foot:
- WHAT IS THE BEST PLACE TO BUY PROPERTY IN DOMINICAN REPUBLIC?
There are several areas throughout the DOMINICAN REPUBLIC that offer great opportunities to buy excellent properties—the best place to buy a property depends on the buyer's needs, wants, and plans.
For example, if the plan is to buy a nice vacation home close to the beach in town close to an international airport and with good hospitals, then PUNTA CANA, LAS TERRENAS, PUERTO PLATA are the best places to buy property; if the plan is to come to retire and live in the mountains enjoying a nice garden with beautiful flowers, but yet be close to a major city with good hospitals and an international airport, than JARABACAO will be the best place to buy property. However, if the objective is to be in a major city in the middle of the action, then SANTO DOMINGO and SANTIAGO are the best places to buy property.
Nevertheless, if the goal is to purchase an investment property for short-term rentals such as AIRBNB, the best location to buy is where there are the most visitors, which in the DOMINICAN REPUBLIC is PUNTA CANA. If it is commercial properties such as gas stations, supermarkets, shopping plazas, or stores, then any of the above-mentioned cities will be a good place to purchase property; however, the success of such businesses depends greatly on their location, and we will gladly find you a commercial property in the ideal location for your type of business.
- CAN A FOREIGNER BUY REAL ESTATE IN THE DOMINICAN REPUBLIC?
YES, foreigners can buy real estate properties in the DOMINICAN REPUBLIC, and in fact:
• As a foreigner, you have the same rights and privileges as Dominicans with regard to buying & owning real estate in the DOMINICAN REPUBLIC, including the benefits of tax incentives such as the CONFOTUR LAW.
• As a foreigner, the title of the properties will be in your name for life i.e. until you chose to sell the properties or to pass them on to your heirs.
• As a foreigner, all you need to buy property in the DOMINICAN REPUBLIC is a valid passport and driver's license.
- CAN A FOREIGNER GET A MORTGAGE FROM A DOMINICAN BANK?
Yes, foreigners can obtain a loan or mortgage in the Dominican Republic, but it is difficult if it is not a new construction. Experience suggests that Americans, Canadians, and Europeans have an easier time obtaining mortgage loans from banks such as BHD LEON, SCOTIA BANK, and Asociación Popular de Ahorros y Préstamos - APAP.
• Keep in mind, however, that interest rates in the DOMINICAN REPUBLIC are frequently much higher than those in the United States, where the annual interest rate on a 10-year loan is typically around 12% and more. In addition, the utmost loan amount is typically 70% of the purchase price.
• Prior to searching for properties, it is a good idea to get pre-approved for a mortgage, but the final approval of a bank mortgage will depend on the specific property being financed.
What are the required documents to get a mortgage in the DR?
- • Copy of passport
- • Copy of driver's license
- • Copy of previous two years tax returns
- • Copy of past three to six months bank statements
- • Employment letter (if applicable)
