For 10 years, these properties are exemptions from
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transfer tax,
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property tax,
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income or capital gains taxes, etc.
The tax exemptions apply to the first buyer: the person who purchases a new unit directly from the developer. However, most property owners hold their title as a corporation. The shares of the corporation can be transferred without effecting the ownership of the property. Therefore, the property and all tax exemptions transfer to the new owner. This is a significant advantage for resale.
Another factor that may impact on the return on your investment is tourism. With the boom in the tourist industry, high rental returns are more achievable than in many other destinations that are said to be “investment hotspots.”
With the increased amount of tourism comes an increased need for rental properties. The ability to find a long-term rental property is becoming more difficult, but for owners of high quality property, the return could be quite lucrative.
Some Examples of Recent Investment
Americans Dan and Ruthie Moller visited a nearby villa four years ago and decided to build one of their own. A $3 million, 18,000 square foot spread, complete with a private beach, will be ready later this year. They will use it as a family retreat, but also rent it out to other Americans for $15,000 a week.
Wall Street money manager Boykin Curry and a group of investors recently took the plunge on the island's north coast and bought up to 2,000 acres to develop in Playa Grande at a bargain $55 million - golf course included.
Recently a German businessman sank $50 million into a marine adventure park on the north coast, Ocean World, which has been drawing tourists from all over the country.
Even Hollywood is taking notice. Recently Brad Pitt was flying about the island looking for his piece of paradise. Fellow actor Vin Diesel is planning on building in Boca Chica and Robert Deniro is also actively looking.
Successful investments aren’t all ultra high end properties. A thirty-six unit apartment complex in El Corticito, built last year, has units selling at an 80% increase in value over the last year.
Our Portfolio of Development Property
Some of the investment properties we have in our portfolio include:
A 204 room hotel in Puerto Plata. It has 13 miles of white sand beach, Access to a Robert Trent Jones 18 hole golf course inside the complex. Asking price is US$15 million
An 11.5 Millions Square meter , 2,875 acres, property that is partially developed. All permits are obtained and the Master plan is approved for immediate construction. It has beaches on the Caribbean Sea and a great lagoon for a marina. With its ideal location, this will not last. Asking price US$8.63 per square meter.
Details on these and many more properties are available in the members only Villa Club, exclusively for real estate developers.
Conclusion
The time is right, investors are looking for international projects and the Dominican Republic is the right place.
If you like the idea of taking white sand beaches, palm trees, towering cliffs and incredible resources, and creating your own unique resort or development, we can help. Give us your requirements and your budget and we will find the properties you're looking for.
From developing raw land to stepping in and taking over an existing property, it is here. But the world has discovered Dominican Republic real estate and today's bargains are going fast.
Choosing the right place to develop Your project is the first and most important step. Being able to offer your buyers ten year tax exemptions is a very powerful marketing tool. We know where to start.
Like many developing countries, to get anything done you need to know the right people. Our team has all the right connections at all levels to take you past the planning, permitting and into full scale development, quickly and easily.
So if you want to explore the possibilities, find out more about the laws, opportunities and properties, join us in the exclusive Villa Club for Developers or contact Daniel Smith.
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