Real Estate in the Dominican Republic

How much does it all cost?

Although a buying a home in the Dominican Republic can be expensive, the island’s status as a tax haven for foreigners could, depending on your individual circumstances, make it one of those investments that end up saving you money in the long run. However, you should be aware that you are likely to incur costs over and above the basic price of your property, and take them into account when budgeting for your move abroad.

Pretty much anyone can buy property in the Dominican Republic. All you need is your passport and a tourist visa. You then need to get your lawyer to register the sale, and make the final payment. If you cannot be present at the proposed time and date, you can hand over power of attorney to your lawyer to register on your behalf. It is highly advisable to speak to a local lawyer before you commit to buy, as there are a few legal issues regarding property ownership, specific to the Dominican Republic, that a non-local solicitor is less likely to be aware of. All in, the legal and government fees should cost to around $2-3000 US Dollars per property purchase.

When a new property is completed, the owner has to pay connection fees to utility companies to cover the cost of connecting and installing water and electricity supplies, as well as telecommunications lines where appropriate. Although the overall cost of this depends on the location of your property, it is unlikely to come to much more than around $1000 in total. Local municipal taxes, covering the cost of rubbish disposal, street maintenance etc typically come to less than $200 a year. Most properties use individual septic tanks for drainage, which need to be serviced every two years or so at a cost of around $50. Telephone and internet bills are usually cheaper than their western equivalents, with the telephone network offering International Direct Dialling, and as such depend on usage. Broadband via satellite is available but is currently still quite expensive.

If you are buying a property to live in, you will need to buy both buildings and contents insurance. If you are buying a property to lease to others, you may only need to purchase buildings insurance, as it will be the responsibility of the leaseholder to insure their own home contents. However, if you are providing a fully furnished home for others to lease, you may need to insure those furnishings that belong to you. If you have bought a property as part of an apartment complex, you will be required to pay a yearly maintenance charge to cover the cost of keeping communal areas and facilities clean and in full working order.