Below we have outlined the top three reasons why you should act now when considering an investment home in the Dominican Republic.
1. Continuous Economic Growth
Over the past three years, the Dominican Republic has been one of the fastest growing countries in the Caribbean. In 2014, the GDP grew by 7.7%, followed by 7.0% in 2015, and 6.6% in 2016. The FocusEconomics Consensus forecasts a continuous 5.0% growth in 2017 (stats show Q1 – 5.2%) and predict 4.5% for 2018.
One of the largest contributors to the Dominican Republic’s growth is in its tourism sector.
At this year’s 2017 Dominican Annual Tourism Exchange (DATE) conference held in Punta Cana, the Vice Minister of Tourism announced a notable “6.4 percent increase in 2016 up from 5.8 percent in 2015 for overall tourism to the country.”
The Minister also indicated “This resulted in a total of 6.1 million tourists, a number that exceeds the original projection by 100,000. This ten percent increase from 2015 is just one of the many elements driving the overall growth of the economy, which is leading all others in the Caribbean with 6.6 percent growth among all sectors in 2016. The United States remains the largest source market for Dominican tourism with 2.1 million visitors in 2016, and Canada following with 772,000.”
Results in the Dominican Republic’s hotel sector were also announced. Occupancy rates overall are 78%, up 18% from last year. Puerto Plata, in the North Coast, saw a significant increase and has a 90% occupancy rate.
Puerto Plata’s rejuvenation over the past several years has boosted the North Coast’s tourism and economy considerably. Large projects such as the Carnival Cruise’s new $85M Amber Port help bring thousands of tourists each month to the Puerto Plata region.
Today, numbers show vacationers want to experience more than just the beach and their hotel. There is an interest in multi-destination travel, which makes the North Coast of the Dominican Republic a popular choice. The North Coast provides a plenitude of unique adventure sports and a strong eco-tourism market perfect for the outdoor enthusiast.
2. High Ratings in Key Areas by Live & Invest Overseas
In a recent article from April 2017, Live & Invest Overseas rated the Dominican Republic in some of the following key areas.
Citizenship, Residency, Investment & Taxation “A”, Banking “B”
“The reasons to target the Dominican Republic for residency (either as a backup or because you’d like to live in the country) and alternative citizenship are compelling. This country offers some of the easiest and cheapest residency options available anywhere.
Generally speaking, gaining a second citizenship takes time or money”
The DR strongly encourages foreign investment and has made several reforms to help attract international buyers looking to retire and invest in the country. The Fast Track Residency is one of those reforms providing qualified retirees and investors permanent residency versus waiting four years with the normal provisional residency.
“The taxation in the Dominican Republic is as good as it gets. This country taxes on a jurisdictional basis. This means that, as a resident, you’re taxed only on what you earn in the DR with an exception for some foreign investment income. Nonresidents are taxed on any income earned in the country.”
The banking system is very secure in the Dominican Republic. The banks have no Bail-In protection compared to the system in North America. If the banks start to fail, they cannot remove funds from your account to bail them out. They follow fairly conservative procedures and do not have the lax-lending practices that have harmed North American banks in previous years. In order to be approved for a loan, an individual or business will need to qualify in terms of income, assets and existing levels of debt.
In addition, the DR banks will lend to foreigners for the purchase of real estate only with a pre-approved developer. Most banks today now offer online or Internet banking and you can open an account with US Dollars.
3. Affordable Real Estate & Cost of Living
The Dominican Republic still offers the best value in the Caribbean from the lowest prices in real estate combined with a very low cost of living. You can purchase a modern 2-bedroom, pre-construction villa located in one of the best 24-hour secured residential communities starting at $120,000 US. This price includes your own private pool, parking, utilities room, fully landscaped yard including tropical gardens and a free shuttle bus to drive you to some of the best beaches in the DR.
Developers today also provide great buying incentives when purchasing a new Caribbean home. For instance, Tourism Law 158 outlines various tax incentives for foreign investment in tourism, and the DR Chamber of Commerce provides a full investment guide. With both government and private developers on-side, the Dominican is open for business.
From that core, it is also important that your location maintains an in-house rental management team, particularly if you are interested in Resale or Pre-Construction properties. Experienced property managers often make or break how well-maintained – and subsequently, its valuable – your property is. Rich and I have been doing this for a long time, and our first priority, along with our team, is to provide you with the continued assurance that your investment is in the right hands.
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