The beach, a cold drink and the waves softly rolling up to your toes that lay buried in the sand, the breeze gently flowing, all making your day so perfect. Many people want to live close to the beach or even right on the beach, that dream that is so attainable but not everyone is familiar with all the steps that go into making it come true.

Today I am going to share with you some things that need to be considered before you buy property in a foreign country, especially the Dominican Republic. Also, some of these items I share with you are things that nobody really considers before they choose to purchase property. We want you to be prepared with the right knowledge before you buy. The Dominican Republic has a bright future and is a great place to purchase property.

Before we dive in let’s take a look at two things Oceans 5 Worldwide focuses on.

1. Buyer Protection.

2. Keeping money in the buyers pocket.

Remember that as we move through these considerations and questions you should be asking yourself.

1. Why the chosen city? Why not another city? Have you researched high-season and low-season rental prices (if you are considering renting the property)?

Questions:

You might like the place but what does the area offer visitors?

What are the options for entertainment? Eating? What factors made you decide the specific city to purchase in? You are going to need to know these things for when you decide to advertise your property.

 

2. How many times a year do you plan to visit? Would you like to rent out your property?

Questions:

What are the Property Management fees per month/year.

Did you do the math to arrive at a comfortable bottom line after all the fees are paid?

 

3. Are you going to buy furnished or unfurnished?

Extra Consideration:

Some real estate developments offer furniture packages, some don’t. Furniture packages can start at an extra  $30,000 USD. If you aren’t buying the property furnished then you need to factor in that cost. If you aren’t buying furnished you need to consider the logistics of getting furniture.

*Contract tip : When you buy a furnished property it is extremely important to take note of how many and what is included. How many knives, spoons, chairs, beds, bed sheets, towels, etc…all of these items need to be in the contract or included in an amendment to the contract.

4. Have you researched future economic development of the city?

Question:

Does this city have plans to attract future economic development? You don’t want to buy in a dead city, a city with no plans of progression is dangerous.

 

5. Foreign Ownership Laws and Regulations

Question:

Maybe the host country requires foreigners to start a corporation or LLC in order to purchase?

 

6. Taxes

Do certain real estate developments have tax incentives? Do certain cities have tax incentives attached to property purchasing?

Question:

Should you open a LLC/Corp and purchase the property through that entity? Are there tax benefits for purchasing through that entity or not?

 

*Top Tax Secret*

For purchasing here in the Dominican Republic I think one, if not the most important question to ask the realtor is if the property falls under the Tourism Incentive Law #158-0 which allows the buyer to not pay tax on the title of the property. Why not save yourself $10,000 US Dollars or more if you can? Make it a smart purchase.

 

Remember, two things Oceans 5 Worldwide focuses on is….

1. Buyer Protection.

2. Keeping money in the buyers pocket.

Does your real estate agent focus on those two items? Most likely not, they just want your commission. Let’s work together to make sure you get the best deal possible.

Lastly, if you are serious about purchasing property in the Dominican Republic then you should join our private Facebook group of like minded people who are planning on calling the Dominican Republic “home” in the near future. This is a great place to get to know people that might be moving to the same city as you, plus lots of tips and insight on the purchasing process and living in the Dominican Republic.

We are always here to answer your questions so don’t hesitate to drop us anything that might be on your mind.

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