Resicom – Holiday Investment – 04-21 – LB

Dominican Republic

The Dominican Republic’s white, uncrowded beaches and tropical climate mean that it is an excellent tourist destination and investment opportunity. Boasting many of the same appeals as Barbados or St Lucia yet with properties at a fraction of the price, The Dominican offers an affordable slice of Caribbean life with exciting growth potential.

Despite being an obvious investment opportunity for all landlords, with among the lowest prices in the Caribbean, the market is mainly dominated by Americans and domestic estate agencies. There is no stamp duty, no tax on rental income and no capital gains tax for the first ten years. Buyers are currently 40 per cent Canadian, 30 per cent American and the rest European.

A relatively simply buying process eases the sale, taking only 6-8 weeks on average after a verbal agreement is made on the price. An attorney or notary public will then prepare the Promise of Sale, which is an agreement signed by both parties including a detailed description of the entire transaction up until the point that the purchase price has been fully paid. The Deed of Sale will then be prepared, as will a formal document binding both parties, signed in the presence of a Notary Public.

After this, the property will be appraised, taxes will be paid, and the Deed of Sale and the Certificate of Title of the Seller will be deposited. The documentation provided by Internal Revenue will be deposited at the Title Registry Office for the jurisdiction at the location of the property. The sale is recorded at the Title Registry Office and a new certificate of title is issued in the buyers name. Foreign buyers have the same rights as locals, and buying costs and legal fees constitute around six per cent of the price.

The Dominican Republic has three major hotspots, each varying in price and style. Punta Cana is a famous beachfront resort which boats one bedroom apartments for under $100,000 as well as three bedroom condos for over a million.

Santo Domingo, the capital of the Island, holds the world’s oldest university, cathedral and fortress, proving that the area is not merely a standard beach resort.

Puerto Plata holds the resorts of Sosua and Cabarete on opposite ends of a 15km headland, either side of the Perla Marina. L Choc National Park can be found bordered by the Septentrional mountain range.

Finally, Casa de Campo is arguably the islands most luxurious resort, covering 7,000 acres of land near the Del Este National Park. Properties range in price from $400,000 to a cool $15 million.

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