Property Ownership - as a company or as an individual?

you should buy property individualy...

there are lots of descriptions online of the pros and cons of each. it's getting time to finish the title of our condo, and had a discussion with our lawyer... of course she pushed for the corp. route. Obviously there was some advantage to us... but also to HER... more fees and an ongoing need for annual paperwork. We opted for the personal ownership... let the chips fall where they will. In the end, it's a personal decision.

Your country of origin may be a deciding factor. For example, for US expats owning a corporation creates reporting problems with the IRS, unless it is a corporation owned by husband and wife, in which case you can report it as if you were self-employed, but ridiculous since if it is your home you have no business income/expenses.

The corporation is recommended a lot here though to limit your personal liability. Yes, I understand local taxes are higher here if you go the corporate way. You'll have to pay an assets tax but if it is personal, unlikely that you pay a property tax.

The benefits of the corporation were liability and taxes and transfer of the property. The tax benefit is now gone, but the liability and transfer are still valid.

The benefit for the lawyer is, as you realized, monetarily significant if you create a corporation.

The only benefits I've discovered in owning as a corporation is the limitation of liability (which can be significant) and the ability to effectively transfer the real estate (e.g. sell it) without incurring the 4% real estate transfer tax, although that is a tax paid by the buyer and not the seller. So it turns out to be more of a benefit for them. The last benefit is what happens to the property if you die.

If you are an individual owner the Dominican estate laws will kick into play which pay result in your assets being distributed in a manner other than you intend (laws outweigh any contract or will). As a corporate owner the corporation does not die when you do so the effective ownership will remain as it was (with the company) so if your corporation ownership is as you wish it then the distribution of the assets will be proper.

At least these three "benefits" are all that I've found thus far.

The downside is the on-going costs for the company which seem to depend a lot on the attorneys you use.

I always think that buying property individually is always a better option.In case you buy it in group and then have disputes with your partner it would be difficult situation.

Anyone know if its worth registering a local property under a foreign company registered offshore? Are there any advantages?

In order to legally register a DR property as an asset of a foreign corporation, the foreign corporation needs to be registered in this country. So you will pay, at a minimum, maintenance for your registration here (annual fees) as well as maintenance for your foreign corporation (annual fees). I'd think you need to have a very good reason for this additional expense.

The ease with wich you can sell when using a corporation and liability these days make it worth the extra expence !and if you pass away your will is easily handled !

arrugala said:

The ease with wich you can sell when using a corporation and liability these days make it worth the extra expence !and if you pass away your will is easily handled !

Click to expand...

Now THAT (estate planning) is a very good reason for the additional expense ;-)

hello every i was trying to start a new thread but couldn't find how to start one.. but anyway hope i can get some answer here. OK here it goes i'm trying to do business in dominican republic santo domingo area my wife is dominican i wanted to buy a land to build a vaction home in their for rental or a condo to rent out i wanna get some advice on buying a land in santo domingo their is one in my wife neighborhood that is selling for 1,000,000 peso which would be 25,000 us its a pretty big lot that is big enough to build a big condo or a big house, her people keep tell me that its a great deal to not pass on. i told my wife before i do business in DR i have to really get a good feel of the country first.. i been their a few times but only stayed for about a month and i also was think about a starting a colmado

GET A GOOD WELL RECOMMENDED LAWYER ! Or SUFFER!!!

Anytime a Dominican family member informs me that a real estate purchase is a "great deal" and not to let it pass, I grab my checkbook and wallet while running as fast as possible away from them! Those deals just literally do not exist in a vacuum!