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Free Guide to Hiring a Real Estate Lawyer
Salvaleón de Higüey is the capital of La Altagracia province, a fast growing region anchored by tourism, retail, services, logistics, and agribusiness. Commercial real estate activity ranges from hotel and hospitality projects in the greater provincial area to retail plazas, warehouses, mixed use developments, and industrial facilities serving the regional economy.
The Dominican Republic follows a civil law system with a modern, registry based property regime. Title to real property is recorded with the national Real Estate Jurisdiction and evidenced by a Certificado de Título. Transactions must be formalized before a Notario Público and registered to be enforceable against third parties. Lenders rely on recorded mortgages, and most buyers and banks require a prior land demarcation survey known as a deslinde.
While foreigners can acquire and hold property on the same terms as Dominican nationals, the legal and permitting framework is technical. Proper due diligence, tax compliance, zoning confirmation, and use specific permits are essential to a successful closing and development in Higüey.
Purchasing or selling a commercial property - drafting or reviewing the purchase agreement, negotiating conditions precedent, structuring the deal, managing escrow, and ensuring the deed is registrable and tax compliant.
Title due diligence - verifying ownership, boundaries, liens, easements, pending litigation, co ownership issues, condominium regimes, and confirming the property has a valid deslinde.
Financing and mortgages - negotiating loan terms, preparing mortgage instruments, calculating registration taxes and fees, and coordinating with lenders for timely recording.
Commercial leasing - preparing landlord and tenant friendly leases compliant with Dominican rental rules, addressing ITBIS VAT on commercial rent, security deposits, maintenance and CAM clauses, sublease and assignment, default and eviction provisions.
Development and construction - securing zoning and land use approvals, municipal and construction permits, environmental authorizations, utility interconnections, and drafting EPC, design, and construction contracts with risk allocation and guarantees.
Hospitality and tourism incentives - structuring projects to qualify for CONFOTUR tax incentives, preparing condominium hotel or fractional regimes, and implementing property management and operating agreements.
Industrial and logistics - assessing suitability for free zone regimes, customs and tax benefits, and compliance with occupational, fire, and environmental regulations.
Dispute resolution - handling boundary or neighbor conflicts, enforcement of leases, non payment, eviction, construction defects, and claims before the Real Estate Jurisdiction or ordinary courts.
Tax planning - evaluating transfer tax, mortgage registration tax, ongoing property taxes, municipal fees, capital gains, and cross border considerations for foreign investors or holding structures.
Regulatory compliance and AML - meeting anti money laundering due diligence, documenting source of funds, and aligning transaction flow with banking and notarial requirements.
Property registration - Law 108-05 on the Real Estate Registry governs title, transfers, liens, and disputes. Ownership is proven by a Certificado de Título issued by the Real Estate Jurisdiction. All registrable acts must be submitted to the Registro de Títulos of La Altagracia.
Deslinde - A court approved boundary demarcation and cadastral survey. Since national reforms, transfers and mortgages generally require a prior deslinde to be admitted for registration. Lenders and institutional buyers routinely require it.
Surveys and cadaster - Surveys are overseen by the Dirección Nacional de Mensuras Catastrales. Only licensed surveyors may prepare plans for registration.
Transfers and taxes - The real estate transfer tax is typically 3 percent of the higher of the purchase price or the assessed cadastral value. It must be paid to the tax authority before the transfer is registered, generally within six months of the deed date. Notarial, registry, and stamp fees also apply.
Mortgages - Mortgages must be executed before a Notario Público and recorded. A mortgage registration tax of approximately 2 percent of the secured amount applies, plus registry fees and stamps.
Ongoing property taxes - Individuals may be subject to the Impuesto al Patrimonio Inmobiliario on property holdings over a statutory threshold. Corporate owners may face the asset tax and standard corporate income tax rules. Municipalities may assess construction permit fees and local charges.
Commercial leases - Urban leases, including many commercial leases, are regulated by Law 4314 and Decree 4807. Parties have contractual freedom, but there are mandatory rules on notices and eviction. Landlords are required to deposit security deposits with the designated state bank. Commercial rent is generally subject to ITBIS VAT.
Condominiums and mixed use - The condominium regime allows vertical and horizontal property under a master deed and bylaws. It is frequently used for retail centers, office buildings, and condo hotel structures. Proper formation and registration are required for unit sales and financing.
Trusts and project finance - Law 189-11 on the Mortgage Market and Trusts allows real estate trusts for development, sales, and collateralization. These structures may offer financing and tax efficiencies when correctly implemented.
Environmental and land use - Law 64-00 requires environmental permits or impact assessments for certain projects. The Ministry of Environment issues licenses. Land use and zoning are administered locally by the Ayuntamiento of Salvaleón de Higüey and related planning bodies. Construction licensing involves the municipality and the Ministry of Public Works.
Tourism incentives - Law 158-01, administered by the tourism promotion council, provides significant tax incentives for qualifying tourism projects in designated areas of the province. Early legal structuring is critical to secure exemptions.
Free zones - Law 8-90 regulates free trade zones used by industrial and logistics operators. Projects must be authorized by the national free zones council to obtain tax and customs benefits.
Anti money laundering - Law 155-17 imposes due diligence duties on notaries, brokers, and financial institutions. Buyers and sellers should be prepared to provide identification, corporate documentation, and proof of funds.
Foreign ownership - Foreigners can buy, own, and sell real estate in the Dominican Republic without special permits. Documents issued abroad must be apostilled or legalized and translated when required.
Public domain and setbacks - Coastal maritime zones and certain waterways are part of the public domain, with setbacks and use restrictions. Projects near these areas require special care and additional permits. While the city of Higüey is inland, provincial projects may be affected.
Yes. Foreign individuals and companies may own commercial real estate on the same terms as Dominican nationals. Foreign documents used in the transaction should be apostilled or legalized and translated if needed.
Deslinde is the official boundary demarcation and cadastral survey approved by the Real Estate Jurisdiction. For most transactions, especially purchases and mortgages, a prior deslinde is required for registration. Closing without a deslinde can delay or prevent registration and limit financing options.
Private closing can occur in 30 to 60 days if due diligence is clean. Registration of the transfer after taxes and fees are paid can take several additional weeks, depending on the workload of the Registro de Títulos. Projects needing a deslinde, permits, or corporate structuring can take longer.
Expect the 3 percent transfer tax, notarial fees, registry fees, and stamps. If financing, add the mortgage registration tax of about 2 percent of the loan amount. Post closing, budget for property taxes, municipal charges, and corporate taxes as applicable.
Yes. Commercial leases are generally subject to ITBIS VAT at the prevailing rate. Residential leases are typically exempt. Lease agreements should state whether rent is plus VAT and how taxes on services and common area charges will be handled.
Under Dominican rental rules, landlords must deposit security deposits with the designated state bank. Failure to comply can affect enforcement and may lead to penalties. Many market participants overlook this, but compliance is advisable to protect rights in court.
Eviction, known as desalojo, is handled through the courts. The process and timeline depend on the lease terms, type of breach, and compliance with statutory notices. Well drafted default and notice clauses, and proof of deposit of the security, improve enforceability.
Obtain a title search and legal status certificate, review the survey and deslinde, check for liens, encumbrances, easements, pending litigation, unpaid taxes, and municipal charges. Confirm zoning and permitted use, building conditions, environmental compliance, and utility availability. For income properties, review leases, rent rolls, financials, and permits.
Some international insurers may offer case by case title insurance. However, Dominican practice relies primarily on thorough legal due diligence, proper deslinde, and careful registration. Discuss availability and cost with your attorney and broker.
The notary drafts and authenticates the deed of sale and other instruments, verifies identities and corporate authority, and ensures formal validity. Registration with the Real Estate Jurisdiction and tax filings are separate steps coordinated by counsel or closing agents.
Registro de Títulos de La Altagracia - Real estate title registry for the province, where transfers, mortgages, and encumbrances are recorded.
Tribunal de Tierras, Departamento Este - Real Estate Jurisdiction court that oversees property disputes, deslinde approvals, and registry related matters in the eastern region.
Dirección Nacional de Mensuras Catastrales, Regional Este - Cadastre and survey authority responsible for approving surveys and boundary demarcations.
Ayuntamiento del Municipio de Salvaleón de Higüey - Municipal government responsible for land use, zoning certificates, construction permits, and local fees.
Ministerio de Obras Públicas y Comunicaciones - National authority involved in construction licensing and infrastructure access for larger projects.
Ministerio de Medio Ambiente y Recursos Naturales - Environmental authority issuing permits and environmental impact approvals under Law 64-00.
Dirección General de Impuestos Internos (DGII) - National tax authority for transfer taxes, VAT on commercial leases, corporate taxes, and property tax compliance.
Cámara de Comercio y Producción de La Altagracia - Provincial chamber managing the Mercantile Registry for companies and providing corporate documentation.
Consejo de Fomento Turístico - Agency administering tourism incentives under Law 158-01 for qualifying projects in designated areas.
Consejo Nacional de Zonas Francas de Exportación - Authority that regulates and authorizes free zone operations for industrial and logistics projects.
Define your objectives - acquisition, lease, development, or financing - and prepare a concise summary of the property or site, intended use, timing, and budget.
Engage a local commercial real estate lawyer in Higüey - confirm experience with title registration, leasing, permits, financing, and, if relevant, tourism or free zone incentives.
Assemble key documents - corporate documents and powers, identification, source of funds support, draft term sheet or letter of intent, preliminary plans, and any prior surveys or permits.
Run legal and technical due diligence - title search and certifications, deslinde verification, survey review, zoning and permitted use checks, environmental screening, and building condition assessments.
Plan taxes and structure - evaluate whether to acquire through a local company, trust, or directly, model transfer tax, VAT on leases, mortgage tax, and ongoing taxes, and align with financing requirements.
Negotiate and paper the deal - finalize the purchase agreement or lease, secure lender approvals, prepare notarial instruments, and schedule closing logistics.
Comply and register - pay transfer and mortgage taxes, file for registration with the Registro de Títulos, deposit security deposits where required, and update municipal and tax registrations.
Post closing operations - calendar tax deadlines, renew permits as required, implement building management and safety protocols, and monitor lease compliance and collections.
For complex projects - coordinate early with the municipality, environment ministry, and sector agencies to map critical paths, approvals, and incentive applications before committing capital.
Document everything - maintain complete, stamped copies of deeds, surveys, permits, tax receipts, and registry entries. This will facilitate refinancing, future sales, and dispute resolution.
