INVESTMENT OPPORTUNITIES IN CENTRAL AMERICA

 

In recent years, in Italy, the markets are increasingly volatile and unpredictable and invest profitably become more and more difficult. Investments considered Historically safe, like the brick ones, have become too unpredictable, as we learn from the crisis on the subprime mortgages in 2007. In fact, Italy is one of the European states that suffer more because of this crisis, with a sharp decline of the value of properties in many areas of the territory.
The Investments on the second house, in Italy, does not guarantee an income stream particularly significant constant (we move around a 3% average annual yield) which is not accompanied by a parallel appreciation of the Property Value with consequent Growth and return of the Investment.

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Dominican Republic Beach

BUY A HOUSE IN SANTO DOMINGO (DOMINICAN REPUBLIC) IS A GOOD INVESTMENT?

From what is stipulated by Decree Law no. 21-98 of 8 January 1998 and subsequent amendments, no type of restriction exists in the Dominican Republic against a foreign buyer.
The Law 16-95 on Foreign Investment provides access to all foreigners who wish to invest in the Dominican economy, except those that are reputed socially dangerous, to national security issues. In addition, the Dominican Constitution confers the same rights of its citizens to foreign investors or foreign investors are subject to the same rules and regulations applicable to the premises.
In recent years 10 years the values ​​of properties in the Dominican Republic have increased of 70% with a constant trend, moreover, in some areas such as (La Romana, Bayahive, Punta Cana, Las Terrenas, Santo Domingo, etc.) due to the trend of the US dollar and the Dominican weight stability against the dollar in the past six years. This positive fact created a significant increase in purchases of property by foreigners in the Dominican Republic even leading some entrepreneurs to build real estate complexes that become targeted investment opportunities, depending on the type of investors, medium / large or legal persons of small media / dimension.

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Puerto plata (Dominican Republic)

WHAT TO KNOW BEFORE BUYING A PROPERTY IN SANTO DOMINGO

In the Dominican Republic are subject to tax only those properties whose cadastral value exceeds 7.000,000 pesos (about 100,000 euros). So, as an individual, it will apply a tax of 1% on properties in excess of this amount. Instead, with regard to legal persons, it will apply a tax of 1% annually regardless of the property value.

It is important to note that all sales and purchases begin with a compromise, which in Santo Domingo is called the «Promesa de Venta» or «opción de Compra», in which the buyer pays to the seller a deposit for the commitment of the seller to remove from the market the building, in order to allow the potential buyer to perform the checks on the property.
Then will follow the final contract, which will obviously have to be signed before a notary public legalizing the signatures of the parties. This act marks the transition of ownership from seller to buyer and is equivalent to the notarial deed in Italy.
By the same document we will proceed to register the sale of the Office of the Registry of Titles “Catasto” according to the constituency of the property, at the end of the release of the new title on behalf of the buyer. Finally, as regards the transfer of ownership expenses, these expenses account for about 3% of the sale value stated Final Act of sale.
This is a list of incentives for investors looking to buy property and move his residence in Dominican Republic:
• Incentives on the accelerated process of the residency process;
• Exemption from import duties on personal and household effects;
• Partial exemption from duties on the importation of a motor vehicle;
• Exemption from transfer fees for the purchase of the first property in the country;
• Permanent Exemption from paying taxes on dividends and interest received from foreign sources;
• 50% reduction in the payment of property tax (IPI) and gains.

Duverge Legal Office

— Posted on abril 3, 2017 at 3:03 pm by