Obtaining a Mortgage in the Dominican Republic

In the Dominican Republic, there are several financing options available for those looking to purchase property or obtain a mortgage. Here are some of the most common options:

  1. Commercial Banks: There are several commercial banks in the Dominican Republic that offer mortgage loans. Some of the most popular ones include Banco Popular, Banco de Reservas, and Banco BHD Leon. These banks offer both fixed and adjustable-rate mortgages with various terms and conditions.
  2. Government Housing Programs: The Dominican government has several housing programs that offer low-interest loans to citizens and legal residents who meet certain income and credit requirements. These programs include Fondo Patrimonial de las Empresas Reformadas (FONPER), Fideicomiso Reservas del País, and Fondo de Desarrollo Industrial y de Crédito Hipotecario (FIDECREDITO).
  3. Private Financing Companies: There are also private financing companies that specialize in offering mortgage loans to individuals and businesses. Some of the most popular ones include Banco Santa Cruz, Banco del Progreso, and Scotiabank.
  4. Seller Financing: In some cases, the seller of a property may be willing to finance the purchase themselves. This can be a good option for buyers who have difficulty obtaining financing from traditional lenders.

When applying for a mortgage or financing in the Dominican Republic, it is important to have a good credit score and a stable income. It may also be necessary to provide collateral, such as property or a car, to secure the loan. It is recommended to consult with a local real estate agent or financial advisor to determine the best financing option for your individual circumstances.

Can foreigners request financing in the Dominican Republic?

It is challenging for foreign buyers to obtain approval for a mortgage in the Dominican Republic, so we recommend financing through a line of credit to get the best possible rates if you are from Canada or the US. If financing in your home country is not an option, we have two suggestions for you — traditional bank financing or seller financing. In some cases, developers and sellers finance buyers with a 20% down payment if the contract is paid off within seven or ten years. 

Foreign Investors Are Welcome

The Dominican Republic welcomes American and Canadian citizens with open arms. When it comes to purchasing a vacation home in the Dominican Republic, there are numerous benefits. Foreigners who invest in the country can avoid paying property taxes for the first 15 years of ownership, making it a popular option for those looking to purchase property abroad. The government also helps facilitate the process by offering tax breaks and reducing red tape as much as possible when issuing building permits. The country’s low cost of living and the government’s pro-business policies make it an ideal location for any entrepreneur.

Can I Get a 15-Year Tax Exemption in the Dominican Republic?

Confotur Tourism Law: How Does it Work? Benefits Explained.

Confotur República Dominicana, or Confotur, is a tourism incentive regime law (no 158-01) granting tax exemptions to owners of eligible properties. The Dominican Republic government requires an application from builders and developers to receive Confotur. This law incentivizes international property investors to populate new and emerging tourist destinations. Property taxes in the Dominican Republic are lower than in most resorts. We strongly recommend hiring a real estate attorney (solicitor) before making any deposits or signing documents in the Dominican Republic. The law provides an exemption from income tax on profit derived from renting or leasing properties for touristic purposes. This includes vacation homes, hotels, and other similar businesses. It grants an exemption from property taxes for real estate used by the tourism industry. The law goes on to provide a 10-year exemption from import duties on capital goods used in the tourism sector.

It is meant to benefit the entire country and its people. By encouraging investment in tourism, the government hopes to create jobs, stimulate economic growth, and promote the Dominican Republic as a desirable tourist destination. This law assists with the preservation of the country’s natural resources and cultural heritage. A strong and vibrant tourism industry will bring significant benefits to the nation and its citizens.

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