Punta Cana Buyers' FAQ
Buying Real Estate in Punta Cana Has Never Been Easier!
Are you ready to start your search to purchase an amazing property in beautiful Punta Cana? The real estate professionals at Dream Realty Group are here to answer your questions to make your property search and purchase go as smoothly as possible.
How is the real estate market in Punta Cana
Homebuyers will be happy to learn that the real estate market for in Punta Cana is more lively and vibrant than it ever. The market is holding its own and with several new construction projects being developed, this is an excellent time to make your next real estate investment. Looking to buy a resale property, we can help you there too! There are also deals to be made with sellers who are in need of some quick cash. The market has steadily developed alongside the rest of the country and is well-known and appreciated for real estate opportunities that provide a strong, consistent appreciation value for homebuyers. It's no wonder, then, that global interest in Punta Cana real estate has reached an all-time high with no signs of slowing down in sight. The time to buy is NOW!
What is the buying process like in the Dominican Republic?
The buying process is straightforward and fairly simple. Once you find a property, Dream Realty Group submits a written offer to the sellers. Once the offer has been accepted and signed by all parties, an initial deposit as well as the legal fees are sent by the buyer via wire transfer. The information is forwarded to the attorney the buyer has chosen from a list we provide to them. The attorney that performs the closing has to be a licensed attorney in the Dominican Republic. A purchase and sales contract follows once the lawyer’s due diligence is completed. Once the closing takes place and final monies have been transferred, the buyer can take possession of the property and the lawyer works on transferring the title into the new owners names. Your lawyer and Dream Realty Group will help you navigate thru the closing process from beginning to end.
What are the closing costs and property taxes?
Closing costs for purchasing property in the Dominican Republic include a one-time transfer of title tax of 3%, based on the DR government's assessed value of your new property, after which the title of the property transfers from the seller to you. Punta Cana property taxes are 1% of the value of real estate property that exceeds approximately $150,000.00 USD. Homeowners who invest in Punta Cana real estate that's worth $200,000.00 USD for example, would pay property taxes worth US$ $50,000.00 USD at a rate of 1%. In this case, a homeowner's annual taxes would come to $500.00 USD which would be paid annually in two installments in March and September.
How can I finance my purchase?
It is typical for buyers to pay cash for their investment property purchase in Punta Cana, DR. This money can come from equity they have in a piece of real estate they own, a savings account, retirement monies, etc. Banks in Dominican Republic can also help you finance your purchase. Some banks will loan up to 70% for a period of 20 years, but you will need a credit score of 680 or higher. For those who do qualify, please note that interest rates are higher here in DR, usually between 7 and 10 percent. Please contact your Dream Realty Group agent for the most up to date information on local financing.
What is the Confotur Law and what are its benefits?
The Tourism Incentive Law 158-01, also know as Confotur, was created in October 2001. It was created from a search for incentives to real estate investments and large infrastructure projects related to tourism in the DR.
The Confotur Law offers financial exemptions for developers and investors looking to build residential and touristic projects. The project must meet a strict series of criteria listed in the Law and be reviewed buy a specific governmental organization.
The law benefits these people willing to promote or invest capital in tourism related infrastructure, such as real estate. These benefits then extend to individual real estate customers. In other words, local and foreign property buyers can enjoy the benefits of the law in the approved projects.
An individual buying units in properties and developments under Confotur will be exempt from:
The 3% Transfer Tax for the transferring of the title certificate to a buyer's name at Internal Revenue (DGII). This elimination of 3% of the value of the property purchased definitely represents savings.
The Annual Property Tax which represents 1% of the value of the property is exempt for a period of 15 years.