WHY BUY REAL ESTATE IN THE DOMINICAN REPUBLIC?
10 Reasons Why Buy REAL ESTATE in the DOMINICAN REPUBLIC
1. Foreign Investment Incentives
* As a foreigner, all you need to buy property in the DOMINICAN REPUBLIC is a valid passport and driver's license.
* As a foreigner, the title of the properties will be in your name for life i.e. until you choose to sell the properties or to pass them on to your heirs.
* As a foreigner, you have the same rights and privileges as Dominicans with regard to buying & owning real estate in the DOMINICAN REPUBLIC, including the benefits of tax incentives such as the CONFOTUR (Law No. 158-01).
2. High Returns on Investment (ROI)
As the #1 Tourist Destination for the CARIBBEAN and #1 Golf Destination for LATIN AMERICA, the short-term rental business in the DOMINICAN REPUBLIC is very lucrative, especially in beach towns like PUNTA CANA and mountainous towns like JARABACOA. Rental properties close to the beach or in the mountains stay rented most of the time, yielding a strong ROI.
3. Second Fastest Growing Economy in Latin America
Over the past 25 years, the DOMINICAN REPUBLIC (DR) has experienced a remarkable period of robust economic growth. The economy expanded by an average of 5.3 percent in 2000–19. The economy recovered strongly from COVID-19 in 2021, with GDP rebounding by 12.3 percent. Tourism, remittances, foreign direct investment, mining revenues, free-trade zones, and telecommunications have helped make the DR the second fastest-growing economy in LAC over the last decade.
(Source: The World Bank)
4. CONFOTUR Tax Exemption & Deferment - Tourism Incentive Law No. 158-01
CONFOTUR is the tourism incentive law of the Dominican Republic. Therefore its purpose is to increase the pace of the development process of the tourist industry in the country, focusing on the regions with high potential or amazing natural conditions for tourism development though-out the DOMINICAN REPUBLIC.
How exactly does CONFOTUR work?
As a real estate buyer of properties with CONFOTUR, you will be exempt from the standard 3% PROPERTY TAX TRANSFER and the standard 1% ANNUAL PROPERTY TAX for a period of up to 15 YEARS.
5. #1 Tourist Destination in the Caribbean & #1 Golf Destination for Latin America
Alongside the economy, the tourism sector has rebounded as well. The Ministry of Tourism of the DOMINICAN REPUBLIC (MITUR) reported that in March 2021 the country received 263,857 non-resident foreign passengers on a total of 3,142 flights from more than 40 countries, representing a 56% increase compared to February 2021. More than 70% of these arrivals were American tourists, and more than 40% of travelers arrived through PUNTA CANA International Airport.
In June 2022, MITUR reported that in the first four months of 2022, 2.2 million tourists arrived in the DOMINICAN REPUBLIC by air and almost 320,000 on cruise ships.
In TOTAL the DR received 8.5 million tourists in 2022, according to the country’s Tourism Minister David Collado, which is an all-time record for the country, and easily the largest total in the wider Caribbean region.
6. Central Location
The DOMINICAN REPUBLIC is centrally located in the Caribbean (learn more) and has 7 International Airports most of which are a short 2-hour direct flight from South Florida, 4-hour direct flights from the East Coast of the United States and Canada, and from most countries in Europe direct flights are around 8 hours—making the DR conveniently accessible and convenient from various points around the globe.
7. Perfect Caribbean Weather Year-Round
The Dominican Republic, the eastern part of the island of Hispaniola, has a tropical climate, hot all year round, with a hotter and muggy season from May to October and a relatively cool season from December to March, while November and April are intermediate months.
8. 10+ Years of a Stable Political Environment
Political stability index (-2.5 weak; 2.5 strong) - Based on that indicator, data was generated for the DOMINICAN REPUBLIC from 1996 to 2020. The average value for the DR during that period was -0.01 points with a minimum of -0.42 points in 2003 and a maximum of 0.25 points in 2012. The latest value from 2020 is 0.17 points. For comparison, the world average in 2020 based on 194 countries is -0.07 points.
The DOMINICAN REPUBLIC has been under democratic rule for the past 50 years and continues evolving into a more open and transparent institution. Within the past ten years, the government has taken great strides towards establishing stability through steps such as undergoing constitutional reform, joining the Open Government Partnership and Anti-Corruption Initiative, and launching National Vision 2030.
9. Among the Safest Countries in the Region
The DOMINICAN REPUBLIC has a special Police Force dedicated to Tourist Safety!
The Tourist Police was created on June 17, 1975, operating under the National Police. On December 21, 2000, the General Directorate of the Tourism Police "POLITUR" was created in coordination with the Ministry of Tourism, the Armed Forces, as well as the National Police Headquarters.
Nevertheless, in 2019 the DOMINICAN REPUBLIC was under media scrutiny over the suspicious deaths of 11 tourists. News articles claimed the deaths were due to tainted/spiked alcohol, but following investigations by the FBI, the deaths were deemed to have been by natural causes.
10. Structured Legal System
The legal system is based on the Napoleonic Code. A nine-member Supreme Court is the final court of appeal. The Senate appoints Supreme Court justices, who in turn appoint judges to lower courts, which include courts of appeal and provincial, municipal, commercial, and land courts. The constitution of 2010 provides for a Constitutional Tribunal to rule on constitutional matters.
FOR INFORMATION ABOUT THE REAL ESTATE BUYING PROCESS IN THE DOMINICAN REPUBLIC CLICK HERE.