The
Dominican Republic – an increasingly accessible paradise
With its calm, clear waters, year-round blue skies and white, sun
kissed beaches, the Caribbean has long had a reputation as a fairytale
utopia for the wealthy holidaymaker, or the very seriously wealthy
expatriate! However, in recent years, the profusion of cheap flights
around the globe has created a demand for more affordable properties
in the area. While property on the islands is still relatively expensive,
you no longer necessarily have to be a multi-millionaire in order
to buy into the Caribbean dream. Smaller villas and apartments with
great facilities and even better views can now be found from as
little as $200,000USD. As the airport infrastructure on the islands
expands , tourist activity on the islands is set to increase exponentially,
creating a huge demand for holiday accommodation in the area, which
is nothing if not good news for anyone looking to make money by
renting out their island property to tourists.
A permanent move to the Dominican Republic is fairly easy to
achieve as long as don’t intend to work in the country and
you can prove that you have enough in the way of funds to live
comfortably for many years without working. If you do intend to
work, you might find that a work permit is almost impossible to
come by unless you have a specialist skill that either unique
to the country or that they are in short supply of. Bear in mind,
however, that if you do achieve residency, and you are involved
in a tax-free savings scheme such as an Individual Savings Account
(ISA
for short), you will no longer be able to pay into it as an expatriate,
although you will still be able to transfer money from any existing
schemes into your island bank account.
Getting a mortgage as a foreign investor in the Dominican Republic
needn’t be especially difficult, but you should be prepared
to pay between 30% and 50% of the value of the house up front
as a deposit. When deciding whether to accept your loan application,
projected income from local property investments and future rental
receipts will most likely not be taken into account, and you will
be required to provide proof that you will be able to pay it back
with money from abroad. You will need to obtain a special licence
from the Dominican authorities before buying property in the republic,
but this should be little more than a formality. All in all, government
and legal fees should come to somewhere between $2000 and $3000USD
per property purchase.
