INVESTMENT PROCESS GUIDE

Investment Process Guide

Step-by-Step Guide: The Legal and Fiscal Process for Buying Property in Las Terrenas (As a Foreigner)

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Investing in the paradise of the Dominican Republic is a dream for many, and most importantly, it is a safe and straightforward process. The country has taken significant steps to protect foreign real estate investment. This guide is designed to simplify the process of buying property in the Dominican Republic as a foreigner, eliminating doubts and preparing you to acquire your property, whether it's in a development like Coral Garden Playa Bonita or any other area of Las Terrenas.

📄 1. Initial Legal Steps and Due Diligence.

The key to a successful purchase lies in verifying the property before signing.

Required Documentation: Passport and Power of Attorney.

The Dominican Republic Real Estate investment requirements are minimal for a foreign buyer. You only need a valid passport and a personal ID. If you cannot be present for the closing or signing, you can grant a Special Power of Attorney (POA) to your lawyer to act on your behalf.

The Importance of Due Diligence.

Before handing over any significant amount, your lawyer must conduct exhaustive Due Diligence. This includes:

• Verifying the Property Title at the Title Registry (to confirm there are no liens or mortgages).
• Reviewing the cadastral maps (to validate the land boundaries).
• Ensuring the seller is up-to-date with their property taxes.

💰 2. Key Financial Aspects and Taxes.

Understanding the costs associated with the purchase allows you to budget accurately and maximize your real estate profitability.

Transfer and Annual Taxes (IVSS).

At the time of closing, the buyer must pay the Real Estate Transfer Tax, which is currently 3% of the appraised value of the property.

• Annual Property Tax (IVSS): Individuals are exempt from paying this tax (1% annually) on property values below $7.8 million Dominican pesos (this figure is adjusted annually). Properties below this threshold, including many apartments, do not pay IVSS.

Financing Options for Non-Residents.

Although purchases in the Dominican Republic are often made in cash (especially for new projects), several local and international banks offer mortgage options for non-residents. It is advisable to research rates and terms before starting your property search.

✅ 3. Your Path to Ownership and Conclusion.

Once Due Diligence is completed and financing is secured, the closing process moves quickly.

Signing the Purchase Agreement (Promise to Sell).

This is the first binding step. The Promise to Sell details the price, payment schedule, penalties for default, and the estimated delivery date (crucial for projects under construction like Coral Garden Playa Bonita). Generally, an initial deposit is made at this point.

Title Transfer and Key Handover.

Once the final payment is made, the Definitive Deed of Sale is signed. This document is filed with the Title Registry for the property to be formally transferred to your name, concluding the process to buy property Dominican Republic foreigner.

Expert Recommendation: Your Secure Investment in Las Terrenas.

At LAS TERRENAS HOUSES, we specialize in guiding international investors through each of these steps. If you are ready to invest in a premium, high-demand project like Coral Garden Playa Bonita OR any property, our legal and sales team is ready to ensure your experience is smooth and transparent.

Consultation for Foreign Buyers – Contact Us to +1809-240-5224 or hrilawyers@gmail.com