- Thread starter businessdr
- Start date
Purchasing Property
Currently, yes you can.
Do you really want to or should you, would require more info and a much longer response.
Do you really want to or should you, would require more info and a much longer response.
There are no restrictions on foreign Individuals or entities owning or leasing real estate in the Dominican Republic. The process for purchasing or leasing real estate for foreigners is exactly the same as for Dominicans
You mention foreign entities. Would that include a LLC registered in the US?
Yes, an American LLC can buy property in the DR. To do it, you must register the LLC with the Dominican tax authorities.
We purchased a condo last year through an LLC and did it fairly painlessly. With Mr Guzman's help :0)
We purchased last December. Had to produce financial statements, income, titles to property here in the U.S. Along with bank statements and personal references from both here and there. Similar in many ways to a purchase here. Also needed a Dominican co-signer even though we paid in full. U.S. banks look down on foreign property purchases so we just took out a second mortgage and they could care less what you do with the money.
I was wondering what the basis of this is myself. The DR legal system is rife with "vouching" requirements. Getting people or entities to vouch for you is very common.
As in anythinng, due diligence is require, especially when you are buying property here.
All real estate has risks no matter where you buy in the world....just happens we are talking about Dominican Republic here.
The core problem here is with these apartment buildings-the condominium law of 1958 and its interpretation by the governing body Tierra Tribunales......
Financing is one of the big issues. Rates/terms at DR banks just aren't competitive with those in N.America. You're looking at at least 7-8%, amortization of only 10-15 years. And usually, you need at least 35% down.
The other big problem is the convoluted application process. It just takes too long.
If you need financing to purchase, you'll have to go the 2nd mortgage route/LOC, as suggested elsewhere in this thread.