Dominican Republic. Broker/Owner, Global Properties Realty & Investments, LLC

Transcription

1 Dominican Republic Broker/Owner, Global Properties Realty & Investments, LLC National Association of REALTORS Chair CIPS Advisory Board, 2018 NAR President Liaison to the Dominican Republic, 2013 / 2018 Florida REALTORS Fundraising, Vice Chair 2018 Ocala Marion County Association of REALTORS, Secretary Treasure

2 Dominican Republic: The Country

3 GDP Growth according to a preliminary estimate released by the Central Bank on 1 August, the economy expanded 7.1% Consumer price inflation (av.) decreased to 3.29 percent year-on-year in September of 2018 from 3.87 percent in the prior month. GDP per capita 7, USD (2017) The Dominican Republic has the ninth largest economy in Latin America, and is the largest in the Caribbean and Central region. 71st-largest economy in the world by GDP (80,413 million US$) 45 embassies abroad as well as 87 consulates.

4 Location

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6 Dominican Republic United States Relations since 1844 Embassy estimates that 150,000 U.S. citizens live in the Dominican Republic The U.S. has been an outspoken supporter of the Dominican Republic's democratic and economic development. The Dominican government has been supportive of many U.S. initiatives in the United Nations and related agencies. Hundreds of companies, banks, stores, fast foods, restaurants, schools, franchises, hotels chains, etc.

7 DOMINICAN REPUBLIC FLORIDA Ranks sixth in FLORIDA trading partners, with nearly $6 billion in total trade in exports. New US ambassador to the Dominican Republic, Robin Bernstein, is a businesswoman from Palm Beach.

8 For Dominicans, there is always time for fishing, playing baseball, tennis, golf, dancing Merengue, bachata or rock, delighting in an exquisite local or international culinary masterpiece, smoking a fine cigar, drink a beer, time to speak with a friend. This is a place to make money, relax and be happy!

9 The Dominican Republic Has It All! Tourism is one of the pillars of the Dominican economy, accounting for an estimated 20 % of the nation s GDP.

10 Main Infrastructures 9 International Airport Santo Domingo (2) Santiago Samaná (2) La Romana Puerto Plata Punta Cana Barahona 15 Seaports; 9 engaged in international commerce, 6 are limited to internal trade.

11 Cruise Ship Ports (5): Santo Domingo (2) La Romana Samaná Puerto Plata Sport Marinas: Santo Domingo Bocha Chica Juan Dolio La Romana Punta Cana Samaná Puerto Plata Golf Courses (28), and another 12 under development

12 D.R is the #1 Tourism visit in The Caribbean Jamaica 17% Puerto Rico 12% Bahamas 11% Cuba 23% Dominican Republic * 37%

13 WHO BUYS IN THE DOMINICAN REPUBLIC #1 United States #2 Canada #3 Europe #4 South America #5 Asia

14 An extensive road network, and a skilled labor force, the Dominican Republic offers a modern transportation infrastructure that is unique for the region. According to the World Trade Organization, are the Caribbean leader in both: tourism and large infrastructure facilities. Cultural Melting Pot! Reasons to Invest High standard of living Proximity to main markets Economical and political stability Transparent legal framework Young and educated workforce Modern infrastructures Good support services Modern telecommunication systems Competitive costs Attractive tax incentives

15 SANTO DOMINGO Larissa

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19 SHOPPING CENTERS

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21 JUAN DOLIO 50 Minutes from Capital City 20 Minutes from main International airport. Seaside community and tourist destination It s called The South Beach of the Caribbean r

22 Larissa Casa de Campo is a luxurious 7,000 acre ocean front residential gated community located on the southeast coast. 5 minutes to International Airport

23 PUNTA CANA & BAVARO

24 Larissa Cap Cana is a Tropical paradise 30,000 acres master-planned, gated, multi-use luxury resort and real estate community

25 Santiago de los Caballeros or simply Santiago is the second-largest city in the Dominican Republic, and the fourth-largest city in the Caribbean.

26 PUERTO PLATA / SOSUA / CABARETE The calm waters, combined with breezy conditions on beaches make it a center for water sports.

27 SAMANA

28 BUYING BASICS FOREIGN BUYERS No restrictions on foreign home buyers. Foreign Investment Act grants equal rights and duties to foreigners open up all possible types of business Fee Simple Lawyers typically charge about 1 percent of the home s sale price, though that can be negotiated for more expensive homes, and will do a title search to make sure the property s title is free and clear. Besides legal fees, home buyers typically pay about 3.1 percent in transfer tax and various fees.

29 While formerly almost all home buyers paid cash, within the last two years, mortgages offered by local banks have become popular, typically offering at least 70 percent financing with interest rates starting at 8 percent. Some developers also offer financing, and normally it s 25 percent down, 75 percent finance, with offer long-term financing from 3 percent interest.

30 Tax Exemptions for 15 Years for Tourism Investments (As provided by Law ) A tourism law provides fiscal exemptions to new tourism projects, not to pay taxes for renovation of old projects, ensuring competitiveness and return on investments. What do not have to pay:

31 CONFOTUR Past 12 months more than 8,000 new hotel rooms were opened,20,723 were approved 2017 approved the qualification of 73 tourism projects will impact La Altagracia with 54 projects, Santo Domingo, Puerto Plata, San Pedro de Macoris, Samaná

32 Who Can Benefit from Law? Tax Holyday Country Accomm odation Hotels / Resorts / Hotel Complexes Tourism real estate projects Joint projects Cruises (port of call) Compleme ntary offer Infrastruc tures Thematic / ecological parks Aquariums, Restaurants / Bars Small artisans, ornamental plants, tropical fish, etc. Congress facilities Entertainment centers, festivals and concerts Marine port facilities, Golf courses and other facilities Aqueducts, Garbage Collection Treatment Plants

33 When? Exemptions According to Up time Project New: All exemptions 5 Years: 15 Years: Only IVA, in case of renovation All exemptions, by modifying more than 50%

34 Potential buyers should be aware of is a tourism law offering the first buyers (those purchasing from the developer) in certain developments an exemption from paying the 3 percent transfer tax and 15 years of property taxes.

35 GUARANTEED ROI Many rental pool programs guarantee for apartments or villas ranging between 6 & 11 percent

36 Residential & Commercial propertyies market is growing fast, thanks to robust tourism growth and the arrival for years of luxury international and boutique hotels. Foreign property investment is encouraged by incentives: Tax-free receipt of pension income from foreign sources, including moving belongings to the country, is guaranteed (Law on Special Incentives for Pensioners and Persons of Independent Means). Tax exemptions to retirees who choose to establish residency in Dominican Republic. Foreign buyers receive a 50% exemption from property tax Exemption from taxes on dividends and interest income, generated within the country or overseas

37 Foreign buyers receive a 50% exemption from taxes on mortgages, when the creditors are financial institutions regulated by Dominican financial monetary law Exemption from payment of taxes for household and personal items Exemption from taxes on property transfers Partial exemption on vehicle taxes Free repatriation of invested capital and profits

38 FACTS There is NO Licensing for Real Estate AEI signs the Bilateral Agreement with NAR in 2014 Many are IRM was a process. CIPS to come US$2,078 p/sq mt Find a good partner Many US sellers in the United States to target

39 Are you ready to dance???? REP_DOM_2018_ESP_V3.mp4

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41 THANK YOU!!!