Hidden Costs of Buying a Private Villa in the Dominican Republic: Part 2

Hidden Costs of Buying a Private Villa in the Dominican Republic: Part 2

Your Perfect Villa

is waiting for you at casa linda

The cost of buying a private villa is usually pretty straightforward, where the buyer has a clear image of the cost. When signing the contract, buyers know the price of purchasing the lot, designing the home and constructing the villa, but what about governmental fees? Every government has its own legal fees and taxes when it comes to buying real estate. Below is everything you need to know about the governmental fees of purchasing Dominican Republic private villas.

1. Legal Fees

As every government implements different rules and regulations on buying real estate, it is strongly recommended that all prospective buyers retain a real estate attorney, or a solicitor, before signing documents or making an agreement. When purchasing a villa in the Dominican Republic, buyers are subject to pay legal fees to their lawyers in order to cover the expenses of due diligence, disbursements and transfer of title fee. Typically, an attorney will charge buyers between 1% and 1.5% of the purchase price to cover the costs of the legal fees and ensure that all your legal paperwork is in place. 

2. Property Transfer Fee

Buyers will also be subject to paying a property transfer tax fee which is 3% of your property value. The 3% transfer tax is usually less than the market value, depending on your purchase price. When paying the property transfer tax fee, buyers are ensured that the title of the property is legally transferred from the sellers to the purchasers. Generally, buyers would be responsible for paying from $2000 – $6000 USD, which is the amount based on the property’s value that the Dominican Republic government assesses.

3. Real Estate Tax Fee

As appraised by the Dominican Republic government authorities, real estate properties owned by individuals are subjected to pay a 1% annual tax that is based on the combined value of all the properties they own. Property owners should only pay the 1% yearly tax fee if their property value exceeds 6,858,885.00 DOP (around $150,000 USD). As a villa owner, your property value is assessed without calculating the value of any furniture or equipment within the property. If your villa is not yet built, but you are the legal owner of the property, then the 1% tax will be calculated on the current appraised value of your property without any exemptions. 

You can pay the real estate tax fee every year at one go on March 11th or before that date. If you prefer to pay the fee in installments, you can pay 50% before March 11th and the remaining 50% before September 11th. Due to inflation, the amount of exemption is generally adjusted annually for all property owners. If your property falls under any of the following circumstances, then you are exempt from paying the 1% real estate tax fee:

  • Farm Properties
  • Properties owned by companies; therefore, pay a separate tax on their company assets
  • Homes whose owner is 65 years or older and has no other property in their name 

Want To Learn More About Owning Dominican Republic Private Villas? 

Contact us today to learn more about purchasing a private villa in the Dominican Republic and how to start your journey to become a property owner. If you want to know more about the hidden costs of purchasing a property from a real estate company, check out part 1 of this blog!

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Hidden Costs of Buying a Private Villa in the Dominican Republic: Part 1

Hidden Costs of Buying a Private Villa in the Dominican Republic: Part 1

Your Perfect Villa

is waiting for you at casa linda

It’s normal for buyers to feel overwhelmed when purchasing a private villa from a real estate company in a country they’re unfamiliar with. Many hidden costs might arise during the buying process, which could make buyers feel confused and stressed. With that said, reputable real estate companies should provide you with a breakdown of all the costs that could come up during your buying process.

At Casa Linda Quality Communities, we are always eager to provide all our homeowners with a list of costs they might come across during their buying process. We understand how difficult it might be to make a costly decision in a foreign country, which is why we have compiled a list of everything you need to know about the additional costs you could face when buying and constructing properties with Casa Linda.

1. Monthly Fees for Casa Linda Quality Communities

Every property manager will have a monthly fee that covers the maintenance and security of the property. Property owners at Casa Linda usually pay a monthly fee of $260 – $340 USD, depending on the size of their lot. This fee includes many services such as:

  • Maintenance of Common areas
  • Maintenance of Outdoor Lighting
  • Office Services
  • Garbage Collection
  • Shuttle Bus Services
  • Owner Liaison Staff Member

The monthly fees are put in place to maintain the security and the cleanliness of the common areas in Casa Linda and offer property owners the opportunity to lock up and leave their property without worrying about any safety issues.

2. Cost of Furnishing

When moving to the Dominican Republic, buyers want to bring parts of their home to their new luxury villa, whether that might be adding similar furniture or purchasing nostalgic memorabilia. Depending on your personal taste and style, the cost of decorating and furnishing your villa will probably fluctuate drastically. Some homeowners aren’t necessarily sure how they would like to furnish their villa or where to find the pieces they have in mind, but don’t worry! Casa Linda is happy to recommend professional decorators for buyers who are unsure of how to furnish their new homes. We always advise our clients to be prepared to pay around 10-15% of the villa cost towards fully furnishing their home, including:

  • Appliances
  • Kitchenware
  • Furniture
  • Pool Equipment
  • Linens
  • Window Coverings
  • Electronics, etc.

3. Maintenance Fees

Homeowners can request housekeeping, gardening and pool maintenance throughout the year for a monthly fee. Depending on the size of your villa, yard and pool, the prices will vary accordingly. At Casa Linda Quality Communities, we are happy to provide all our homeowners with a complete outline of the costs for any services, including housekeeping, gardening and pool maintenance. We work closely with our homeowners to ensure transparency with all our maintenance fees.

Contact Casa Linda

Ready to build the villa of your dreams with Casa Linda? Check out our villa floor plans and prices, and contact us when you’re ready to start your Caribbean journey! If you want to learn more about the hidden costs of taxes in the Dominican Republic, check out part 2 of this blog.

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