Real Estate In The Dominican Republic

Dominican Republic Real Estate: Terms You Need To Know

When looking to buy property in the Dominican Republic there are a number of terms to be aware of…

Bienes raices or inmuebles are the most common Spanish terms for “real estate.”

Inmobiliaria refers more to a business that buys and sells real estate.

A solar or parcela is a tract of land and a mortgage is an hipoteca.

Real Estate Agents

Real estate agents in the Dominican Republic are currently not licensed or regulated by the government, though there have been efforts to change that recently. Nevertheless, they may be helpful.

Good agents will do much of the legwork for you and can sometimes even negotiate better prices as many sellers expect foreigners to pay more than locals.

The agent’s fees are paid by the vendor.

Real estate agents should not be relied on to help with the legal and financial aspects of buying property — that’s what the lawyer is for.

What About Financing?

Financing is available through local banks and savings and loans, but interest rates are high and tend to fluctuate around the 20% mark.

Even worse, they are adjustable and can only be secured in pesos – a currency which moves a great deal against the dollar.

Most foreign buyers pay cash.

Property taxes in the Dominican Republic (“IVSS taxes”) of 0.25% of appraised value are levied on homes worth more than $RD1,400,000.00.

Many property owners do not bother to pay the taxes. However, it must be paid if the property changes hands. Plus, late payments are penalized.

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