Real Estate Laws in Dominican Republic

Residency

Obtaining residency is straightforward and relatively hassle-free. According to our U.S. friend who lives in the area, you now must own property to obtain permanent residency, but hey isn’t that the point anyway.

Taxes

US$167,000. The first 5 million pesos is exempt, and the balance is taxed at 1%.

When you are ready to sell, expect to pay between 6% to 10% to the real estate broker or agent who sells your house. There is also a transfer fee of 5% and notary or legal fees can cost an additional 1%.

Dominican Corporations

Dominican Republic corporations are fairly easy to set up; the process takes about four to six weeks. The advantage to using them to hold your property in the country is that company shares come with no inheritance tax liability. The cost to set up a corporation is typically around $1,500 to $2500. Also, the first $85,000 of earnings in the corporation is tax free.