How to Buy Real Estate in the Dominican Republic

The Dominican Republic makes up half of the beautiful Caribbean island of Hispaniola. The island's lush forests, pristine beaches and rich culture make it an attractive destination, especially for American's who are only a few hundred miles from its shores. If you're thinking about buying real estate on the island, follow these steps to make a wise decision.

Instructions

1. Think about why you want to own real estate in the Dominican Republic. If your reasons are personal, you can make a good decision based on your budget and the property market. If you're making a financial decision, a whole different set of considerations must be taken into account.

2. Investigate the property market thoroughly. Many foreign visitors to the island see property advertisements that seem too good to be true and often are. Also, prices that seem inexpensive to an American, for example, might not reflect the true market price, so shop around to calibrate your expectations before your buy.

3. Find out about taxes for a given piece of real estate. Many foreigners hear that foreigners pay no property taxes in the Dominican Republic. This is not true. In some cases, real estate might be free from real estate tax liability and a title transfer tax, and on occasion, there is a tax exemption. Neither of these situations should just be assumed, so speak with a lawyer or government official before you buy.

4. Make sure previous taxes are paid in full. The Dominican Republic does not have a government agency that sends real estate tax reminders to owners. If the government finds that there are back taxes on a property, it will simply collect the tax from the current owner, so be sure all taxes are paid before you buy real estate.