Dominican Republic and Casa de Campo Information
Schools
Weather
Weather Report for Casa de Campo
15 Reasons To Buy A Villa in Casa de Campo
1) The Caribbean’s most established and complete resort
2) Four world-class Pete Dye golf courses
3) World-class polo, shooting and tennis
4) 16th century replica Mediterranean village and cultural center “Altos de Chavon”
5) The Caribbean’s most complete marina facility
6) White sandy beach
7) Great Shopping & restaurants
8) Eight-minute drive to international airport
9) Friendliest culture in the Caribbean
10) History of increasing property values
11) Warm weather year round
12) Global presence in major world markets
13) True sense of community and social life
14) Tax exemptions for qualified persons
15) Perfect for weddings and corporate functions
How Do I Own Property in the Dominican Republic?
1) How do you own property - in your personal name or in a corporate name?
You can choose either way. No matter which way you own property, personal name or corporate, you own that property outright with title, fee simple.
2) If a property is owned in a corporate name, can it be assignable?
Yes, you can transfer shares of the corporation to a new owner.
Note: the new owner can be another corporation or trust.
3) Will I pay property tax on a yearly basis? How does the government determine the taxable amount?
Yes. Property tax is called “IPI” tax. It is approximately 1% of the assessed value of the home that is determined by the amount of square meters of the house and its appraised value. If the property is owned by the corporation, the applicable tax is tax over the assets (impuesto sobre activos), but a company must pay the higher value of either the 1% tax over assets or 25% over its net income. Companies that only own property are generally subject to the 1% tax over its assets and that asset is normally the real estate.
4) Do you get a deed at closing? Is there a Transfer Tax?
If the transaction is a transfer of real property, the Seller must provide you with the Deed of Title Duplicate of Owner (Certificado de Tituio duplicado del Dueno) along with other documentation required to record the transfer at the land registry. Before you record the transfer of title, you must pay your transfer taxes (3% of the value of the property) at the Department of Internal Revenue which issues a receipt evidencing you have paid. If the transaction is a transfer of shares then the Seller must provide you with the shares and the Deed of Title Duplicate of Owner.
5) Do you need title insurance?
It is not customary but it is available through Las America Title Services and other agencies.
6) What are typical closing costs? How much is the Transfer Tax?
Closings costs will be your attorney’s fees. The transfer tax is 3% of the value of the property.
7) Does financing impact the closing?
Sellers do not require local financing. Banks will require appraisals in order to approve the loans if financing has been pre-approved, it should not impact the closing.
8) Is there a due diligence period where you can inspect the property before putting down a deposit?
Is it common in the DR to perform due diligence on the property. Purchasers want to make sure the property is free of liens and encumbrances, the Seller is up to date in payment of property tax, that the surface area of the property is what the Seller says it is, etc.
9) How do you apply for tax exemptions?
An attorney can find out if you qualify for tax exemptions and how it is paid.