Buying a Condo Using an American LLC

[elbronco718]

I'm purchasing a condo in Puerto Plata and I'm interested in owning it through an American LLC but cant get honest answers anywhere. Of course I had to come to the best source for information in the good old DR!

Basically I would be putting 20% cash down on the condo, but I want the title to be under my American LLC. Is this possible? Has anyone actually done this? I'm an open book, willing to hear the usually funny negative jokes and also the optimistic group. I would be financing using a Dominican bank. But im flexible.

 

[NanSanPedro]

I'm purchasing a condo in Puerto Plata and I'm interested in owning it through an American LLC but cant get honest answers anywhere. Of course I had to come to the best source for information in the good old DR!

Basically I would be putting 20% cash down on the condo, but I want the title to be under my American LLC. Is this possible? Has anyone actually done this? I'm an open book, willing to hear the usually funny negative jokes and also the optimistic group. I would be financing using a Dominican bank. But im flexible.

You probably need to state your citizenship, USA, DR, or hopefully both. It will make a major difference on financing.

 

[ctrob]

If you put your question in the legal forum you'll probably get an answer from a Dominican Atty.

But you may be better off forming a Dominican corp and buying it under that - done all the time. There are benefits to doing that.

 

[AlterEgo]

I moved this to the Legal forum.

 

[JD Jones]

Like ctrob says, Why not put it in the name of your newly formed (or purchased) corporation here?

I'm no legal expert but that has to be much easier than trying to go with your U.S. company. And having a corporation here is stupid simple.

 

[johne]

The man is getting financing. What makes you think a bank is financing THEIR condo in a LLC??

 

[JD Jones]

The man is getting financing. What makes you think a bank is financing THEIR condo in a LLC??

As long as the bank is financing it, it's not going to be under under anybody's LLC.

All of my land purchases have been cash, but everything I sold was financed by a bank and that is what the manager told me.

 

[Fabio J. Guzman]

You can buy property in the DR. under the name of a foreign LLC; however, you must first register the LLC in the DR and obtain a tax number (RNC).

 

[aarhus]

If its owned in a company a Dominican or the LLC registred in the DR with Dominican tax id (RNC nr) you will have to declare taxes each year and pay 1% asset tax.

 

[johne]

I'm purchasing a condo in Puerto Plata and I'm interested in owning it through an American LLC but cant get honest answers anywhere. Of course I had to come to the best source for information in the good old DR!

Basically I would be putting 20% cash down on the condo, but I want the title to be under my American LLC. Is this possible? Has anyone actually done this? I'm an open book, willing to hear the usually funny negative jokes and also the optimistic group. I would be financing using a Dominican bank. But im flexible.

Reviewing for a moment the details because i think some critical parts are being overlooked:
You are putting up 20% cash and looking to finance 80% of this purchase through a Dominican bank. You want the title to be in an American LLC. I assume you are a single member of the LLC and as such you personally are signing for the debt. Mr. Guzman says you can buy in the DR as long as the LLC is registered in the DR.
My first question is: Is that bank going to lend money to YOU or the LLC? In what state (in the U.S.) is the LLC register? Why would you have a need to register the asset (the title to a house) to a register here in the DR? And pay a tax each year. I'm a little confused as to what you are trying to do with the LLC and the registering here.

 

[aarhus]

I think thats the way to get recidency through property investment. Not by purchasing a home in your name but in a company but then you have to run it as a business and declare taxes each year regarding the property including rental income and there is the 1% asset tax even if no income and other implications I think. You would need to deal with a Dominican accountant. That is always a wonderful experience.

 

[johne]

I think thats the way to get recidency through property investment. Not by purchasing a home in your name but in a company but then you have to run it as a business and declare taxes each year regarding the property including rental income and there is the 1% asset tax even if no income and other implications I think. You would need to deal with a Dominican accountant. That is always a wonderful experience.

I"ll check that theory out as I have my first consultation in SD for on Wed for my residency..

 

[cavok]

I think thats the way to get recidency through property investment. Not by purchasing a home in your name but in a company but then you have to run it as a business and declare taxes each year regarding the property including rental income and there is the 1% asset tax even if no income and other implications I think. You would need to deal with a Dominican accountant. That is always a wonderful experience.

A friend of mine did just that. He bought two oceanfront villas through a Dominican company he formed here and rents the villas out. He got citizenship that way.

 

[johne]

Well, this is way off from OP. I believe he is looking to hide ownership of the property he wants to buy by using a LLC.And that purchase is of a Dominican property that he hopes to finance with a Dominican bank. I don't think this has anything to do with residency.

 

[aarhus]

Well, this is way off from OP. I believe he is looking to hide ownership of the property he wants to buy by using a LLC.And that purchase is of a Dominican property that he hopes to finance with a Dominican bank. I don't think this has anything to do with residency.

Maybe an idea for another thread then under legal forum or residency or real estate.

 

[johne]

Maybe an idea for another thread then under legal forum or residency or real estate.

yes.

 

[elbronco718]

Hi, so this is kind of weird. I was born in the DR but im an American citizen. Im sorry I wasnt thorough in the OP. Im not looking to hide any assets, im in fact looking to pay all taxes and expenses in full, but in return id like to deduct all these expenses on my American taxes. Its just impossible to find any information without paying...and even if you pay someone...the information is biased....but long story long I just want to know everything there is about buying investment properties in the DR and how to best be able to deduct any expenses on my American taxes.

Maybe I have it all backwards and theres no reason to buy an investment property while using a registered company. I just find it hard to believe there are no foreign investors buying properties thru corporations. Once again. This is the best website on the web. I appreciate every single view and comment

 

[cavok]

I think you need to talk to an American tax lawyer about deducting those expenses(?).

 

[johne]

Many of "the expenses that you want to deduct against your real estate investment" no longer exist in the US tax code.Yes, you might need o pay for some accounting and legal work but it will be well worth it in the long run. IMHO this site is not the place to get that information. Unless of course you are interested in "opinions ". That's free , all inclusive in the DR.

 

[johne]

A little off topic but...I often hear ppl say "I am starting a biz and I just opened an LLC". I ask them what are you going to do with that LLC that cost money to renew each year? Rarely, do I hear a valid response. Many think that opening an LLC is part of the process, that it is similiar to opening a corporation. There are many GOOD reasons to have an LLC but one should understand, with the help of a professional, how that LLC will help you. The rest of the story doesn't belong here.