Andrey Mamchich, MSc. – Purchasing Agent in Dominican Republic

TropicalMax Real Estate
Las Terrenas, 32000, Puerto Plaza, Local A7/A8
Office Tel: 8093754390

Andrey Mamchich, Realtor
Valcaoba residence,
Las Terrenas .
Tel: 1-829-859-7600

For over 25 years, Andrey had worked in international business sales and marketing. With is strong ability to produce results within a team environment or independently, he is self-motivated and a very commitment professional. Andrei strives to meet the deadlines. He is intelligent, articulate, innovative, self-starter with a commitment to excellence.

Fluent in English, Russian, Ukrainian and Polish Languages

Institute of Civil Aviation Engineers, Kiev, Ukraine
Master of Science Degree in Aviation Engineering

FAQs about owning a property in Dominican Republic.
1.Can I purchase a home in Dominican Republic, as a foreigner?

Foreigners who wish to purchase real estate property in the Dominican Republic have no restrictions whatsoever. All of us have the exact same obligations and rights when buying a property as the citizens of the Dominican Republic. The only thing that a potential foreign buyer needs to have is a valid passport.

2.What cost and taxes should I expect in real estate transactions?

Taxes & fees:
• Around 2 to 3% fee for transferring the ownership of the purchased property.
• Around 1% for the legal fees.
PS: The Broker’s commission is paid by the sellers.

3.What are transfer taxes when buying the properties?

The property transfer tax is the tax buyers to the government to transfer the property under their names.
In the Dominican Republic, the property transfer tax is equal to 3% of the assessed value of that property. That value is not the purchase price, but by the value registered at the Internal Revenue Office. Usually, it is lower than the actual market value of the property.
For the buyers who are purchasing with the help of a mortgage loan from a local bank, they will pay the transfer tax on the value of the purchased property. As this final purchase price is known by the bank and sent to the “Internal Revenue Office”.
Buyers who are purchasing a property under a company’s name should know that the due transfer tax is 2% of that company’s capital.

4.What are the legal fees when buying a property in Dominican Republic?

In general, the legal fees are around 1% of the amount of the transaction. This is the fee for the service provided by the legal office you’ve chosen, it includes the due diligence, meetings, drafting of contracts. Basically, all the steps to transfer the “Certificate of ownership” in the name(s) of the new owner(s).
On top of that 1%, add 18% of vat-tax for abstention and legalization of the required documents during the transaction.
Here is an example with a US$300,000 transaction: 1% = US$3,000 + 18% = US$540 bringing the total legal fees at US$3,540.
The buyer(s) pay(s) for transfer and legal fees. All of the other fees are payable by the seller(s).

5.Are there yearly, property taxes in Dominican Republican?

The Annual Property Tax is locally known as “IPI”. It is an annual tax applied on the total amount of the real estate value of a property registered by natural persons or trusts.

Who is subject to the payment of this tax?
• Individuals and trusts (the one who holds the title to the property).
For the all the properties (all homes and urban lots) owned by individuals which values are registered below US$150,000 (approximately), these are exempted from annual property taxes.
Individuals: a rate of 1% is applied on the surplus value of RD$7,438,197 (or US$147,387 as of June 2019) of the property. Meaning that a property worth US$200,000 will be taxed on 52,613 at 1%, so US$526 annually.
Trusts: 1% on the value of the real estate property. There are with no exceptions.
PS: This tax is paid in two half-yearly installments, with the deadline for payment of the first installment on March 11 and the second on September 11 of each year. You should also know that the amount of tax assets which are paid by the company can apply as a credit to it revenues.
They are exempt from the payment of this tax:
• The building (and the land on which it is built) belonging to people over 65 years of age, provided that this is the only property of its owner in the Dominican Republic.
• Pensioners and rentiers from a foreign source (50%).
• Rural land.
• Properties of agricultural use located on rural land.
• All properties that can fall under the IPI tax, which total value is equal to or less than (RD$7,438,197 / US$147,387).

6.What is the “Deslinde” and why I cannot buy property without it?

A “Deslinde” is a title of ownership or “Certificate of title” defining the borders of a property and its rightful owners.
You cannot buy rightfully a property without a clear “Deslinde”.
It also certifies that the property was surveyed (with GPS points) and that all of its boundaries and lines were defined from the original title. During that process, anyone can claim ownership of that delimited area. A bleu “Deslinde” means that all is in order. That document is issued right after the property get approved, it is cleared.
Thanks to the recent updates to the Dominican Republic’s Property Registry Law, all real estate sales and purchases must have a clear “Certificate of Title” to be recorded at the Property Registry.
Before this law was passed by the Dominican Republic government, it was not guaranteed that the seller owns the property free and clear. Properties could be sold and bought before prior to this law, but the whole responsibility of having a Clear Title Certificate was left to the buyers.
This new Law requires that the property needs to have a clear “Certificate of title” before the sale. It is up to the legal representative of the buyers to see if the property they are planning to purchase has a clear “Certificate of Title”.
Dominican Republic’s Property Registry Law makes it clear that a property purchase cannot be complete and recorded at the Property Registry without having a “Deslinde” together with a clear “Certificate of Title”.

7.What is the Confotur law?

The CONFOTUR Law seeks to populate the least served tourist areas of the Dominican Republic and to promote the protection of the environment in these areas. The benefits granted by this legislation may be given to all natural or legal persons domiciled in the country that willing, to promote or invest capital in tourism related infrastructure, such as Real Estate. Those who are fell under CONFOTUR Law are exempt from 100% of Transfer and Property Tax.
* Exempt of 3% Transfer Tax for the transferring the title certificate to a buyer’s name at Internal Revenue (DGII).
* Exempt of Property Tax represents 1% of the exceeding value of RD$ 7,438,197.00 (about US$148,000.00), each taxpayer pays on a yearly basis. Properties and developments under CONFOTUR are exempt of this 1% property tax for up to 10-15 years.
The CONFOTUR Law also offers other exemptions for significant hotels, as well as the medium-big Real Estate developers and investors such as condos.
* Exempt from 100% of the National and Municipal taxes for the constitution of companies, for capital increase of already constituted companies, National taxes and Municipalities by transfer on real estate rights, by sales, swaps, contributions in nature and any other form of transfer on rights real estate, of the Tax on Sumptuary and Solar Unbuilt Housing (IVSS). This also includes as the fees for the preparation of the plans, of the studies, consultancies and supervision and the construction of the works to be executed in the tourism project in question, the latter being an exemption applicable to contractors responsible for the execution of the works.
* Exempt from100% of import taxes and other taxes such as fees, duties, surcharges, including the Tax on Transfers of Industrialized Goods and Services (ITBIS), which are applicable on machinery, equipment, materials and movable property that are necessary for the construction and for the first equipment and commissioning of the tourist facility from which about.
* Once a project is approved by CONFOTUR Law and granted all the above-listed benefits, investors are able to deduct their investments from their net taxable income.
Are buyers covered by inheritance laws?
There are no restrictions whatsoever on foreigners being able to inherit ownership of a property in the Dominican Republic.
Foreigners who are residing in the Dominican Republic and the citizens of the Dominican Republic will be happy to hear that the recent tax-law ruling lowered the inheritance tax to just 3% of the government’s assessed value of the property.
For those beneficiaries who are not currently living in the Dominican Republic, the inheritance tax is 4.5%. A minimum portion of the inheritance will have to be transferred to direct heirs, regardless of the existence of a will in a different country.

8.What does a cleaning lady or Gardner costing?

Employees are compared to the USA or Europe extremely cheap here. Below a small overview.
 gardener who in general can do your garden, pool cleaning and some small things around the house 8000-9000 pesos per month. Around 170-190 USD per month. Full time is 6 days a week from Monday till Saturday 8-5 with 1,5 hr lunch time.
 a cleaning lady has the same. They often do cook as well and watch over children. If you use them only half days or 1 day per week then it would be around 800 pesos per day, around 17 USD.
 Evening watchman are a bit more expensive. Think around 230-240 USD per month, 7 nights a week.
The Dominican Republic has labor law. At the end of the year the 13th month and when one stops you need to pay a so called “liquidation”. Las Terrenas has a labor office.

9.Electricity and water?

There are 2 companies managing electricity in and around Las Terrenas: Luz y Fuerza and Progreso de Limon. Both have same prices per kw, around 15 pesos / 0,32 USD per kwh.
Few blackouts and good quality compared to the rest from the country. To give you an indication: a 3-bedroom home with a pool does around 6000 pesos / 130 USD and a 2-bedroom apartment for around 2000 pesos / 45 USD per month.
10.Water in Samana and Las Terrenas: still not potable. Safe to use for shower, teeth and cook. For drinking only use the 5-gallon bottles at 1 USD each. There is a city water system but not everybody is connected. Sometimes owners are connected to the project water or have a private well.

11.International airports to come to Las Terrenas?

The get to Samana and or Las Terrenas by international flights there are several options:
 international airport El Catey (AZS) at around 20 minutes’ drive from Las Terrenas.
 Puerto Plata airport (POP) is also a long drive, at 3 hrs.
The famous motoconchos: cheapest way to go around in Las Terrenas are these guys on their motors. They bring you from one part to another part in town on a low budget. 25 – 50 pesos. They do also shopping, delivery, etc. The moto easy fits 2 persons.
Bus transport: on a daily basis busses go up and down from Las Terrenas to Santo Domingo. Around 10 USD> These are comfortable larger busses.
Then the guaguas: these can be open pickup cars or small mini busses. They often go from one village to another village. Cheap and easy. When you see one, just raise your hand and they stop.