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Free Guide to Hiring a Real Estate Lawyer
Commercial real estate in Salvaleón de Higüey operates within the Dominican Republic legal framework while reflecting the local economy of La Altagracia province, which is closely tied to tourism, retail, hospitality, logistics, and service industries. The market includes storefronts in urban corridors, hospitality assets and mixed use projects supporting the Punta Cana and Bávaro tourism hubs, warehouses and logistics facilities along regional highways, and development land for new construction. Transactions and developments are governed by national property and registration laws, municipal land use and construction rules, environmental and tourism regulations, and tax requirements administered by national and local authorities.
Most title matters are handled under the Dominican Torrens style system, which relies on state maintained property registries. Foreign ownership is permitted, and project finance commonly uses mortgages and trusts. Because local permitting, zoning, and infrastructure considerations can affect feasibility and timelines, early legal and technical due diligence is essential for buyers, tenants, lenders, and developers.
You may need legal help when acquiring, selling, leasing, financing, or developing commercial property in Salvaleón de Higüey. Typical situations include verifying clean title and boundaries before a purchase, structuring letters of intent and purchase agreements, negotiating and documenting commercial leases, registering mortgages and collateral, setting up a condominium or horizontal property regime for multi unit projects, conducting land use and environmental due diligence, obtaining construction and occupancy permits, securing tourism incentives for eligible projects, addressing tax planning and compliance, and managing disputes, defaults, or evictions.
Local counsel can coordinate with surveyors and notaries, navigate filings at the Registry of Titles and the Cadastral Survey offices, manage municipal and ministerial approvals, identify liens, annotations, encroachments, or pending litigation that affect the property, and align transaction documents with Dominican law. For cross border parties, counsel also helps with anti money laundering compliance and foreign investment requirements, and can tailor financing and trust structures to local law.
Property registration and title. Real estate matters are governed by the Real Estate Registration Law No. 108-05 and its regulations. The Dominican system uses certificates of title, and transactions are effective against third parties once recorded at the Registry of Titles. Surveys and boundary determinations are overseen by the Cadastral Survey authority. A properly completed boundary demarcation known as deslinde is generally required before transfers and mortgages can be registered, so buyers and lenders often confirm that a valid deslinde exists or plan time for one.
Transfer and mortgage formalities. Purchase and sale agreements and mortgage deeds must be notarized and filed with the Real Estate Registry. Transfers are subject to an asset transfer tax commonly applied at 3 percent of the higher of the purchase price or the assessed cadastral value, plus filing and notarial fees. Mortgage registration requires payment of registration taxes and fees that are typically calculated as a percentage of the secured amount. Parties should budget for certification, stamp, and registry charges and confirm current rates before closing.
Leases. Commercial leases are primarily governed by the Civil Code and special provisions of the urban lease and eviction regime. Leases should be executed in writing, often before a notary for evidentiary strength, and may be registered for greater enforceability against third parties. Commercial rents are generally subject to Dominican value added tax known as ITBIS, and withholding rules can apply depending on the status of the landlord and tenant. Evictions and rent disputes proceed in the local civil courts, subject to statutory notice periods and procedural requirements.
Development and zoning. Land use, construction, signage, and occupancy are regulated by the Municipality of Salvaleón de Higüey through local ordinances and permits. New builds and substantial renovations typically require site and building permits, approved architectural and structural plans aligned with the national seismic code, and compliance with fire safety, accessibility, and sanitation standards. Projects that may impact the environment must comply with Environmental Law No. 64-00 and obtain the applicable environmental permit or license from the Ministry of Environment. Height and land use restrictions can be stricter in areas with tourism planning or near critical infrastructure, so early consultation with municipal and sector authorities is important.
Tourism and investment incentives. Many hospitality and mixed use projects in La Altagracia may qualify for tax incentives under the Tourism Incentive Law No. 158-01 and its amendments, administered through the relevant tourism authorities. Foreign investment is broadly permitted under Law No. 16-95. Real estate and professional intermediaries must adhere to anti money laundering and counter terrorism financing rules under Law No. 155-17, including know your client procedures and reporting thresholds.
Financing and trusts. Mortgages are governed by the Civil Code and recorded at the Real Estate Registry. Development and financing structures often use Law No. 189-11 on the Mortgage Market and Trusts, which provides for real estate trusts known as fideicomisos that can hold property, receive presales, and secure financing with defined governance and creditor protections. Lenders and investors usually require robust collateral documentation and priority searches for liens and annotations.
Tax considerations. Key taxes include transfer tax on purchases, registration taxes on mortgages, annual property tax for individuals above a threshold known as IPI, and corporate income tax on rental income and gains. ITBIS generally applies to commercial rent and certain real estate related services. Specific rates and thresholds can change, and exemptions or incentives may apply depending on the asset, taxpayer status, or location. Coordination with tax advisors and the tax authority is recommended during structuring and closing.
Dispute resolution. Title and registry disputes fall within the specialized Real Estate Jurisdiction, while contract, lease, construction, and commercial claims are heard in the ordinary civil and commercial courts. Arbitration is available by agreement and is commonly used for construction and high value commercial disputes.
Yes. There are no nationality based restrictions on owning commercial real estate in the Dominican Republic. Foreign buyers must comply with identification, tax registration if needed, and anti money laundering requirements, and should record their ownership to receive a certificate of title in their name or in the name of a local entity or trust.
A deslinde is a legally approved boundary survey that defines the exact limits of a parcel in the real estate registry and cadastre. Without a completed deslinde, you may face delays registering a transfer or mortgage, and lenders may not fund. Confirm whether the target property already has a valid deslinde and budget time and cost if one is required.
Simple transactions with clean title and no financing can close in a few weeks once due diligence is complete. If a new deslinde, environmental clearances, corporate approvals, or mortgage financing are needed, the timeline can extend several months. Early document collection and coordination with surveyors, notaries, and the Registry of Titles reduces delays.
Expect a transfer tax commonly applied at 3 percent of the higher of the purchase price or the assessed value, registry and certification fees, and notarial fees. If financing, mortgage registration taxes and fees apply based on the loan amount. Ongoing taxes include annual property tax for eligible owners and income tax on rental income. Seek current figures from your lawyer or tax advisor because rates and thresholds can change.
Commercial leases are generally subject to ITBIS, the Dominican value added tax, which is charged on rent and related taxable services. Parties should address tax collection, invoicing, and any applicable withholding in the lease to avoid disputes and penalties.
Your lawyer will request updated certificates from the Registry of Titles showing the current owner, registered liens or mortgages, and any annotations such as litigation notices or encumbrances. Counsel also reviews the cadastral plan, verifies the deslinde, and checks for municipal or environmental issues that may not appear on title.
Typically you will need municipal construction permits, approved architectural and structural plans compliant with the national building and seismic codes, fire safety approval, and utility clearances. If the project could affect the environment, an environmental permit or license is required under Environmental Law No. 64-00. Tourism related projects may require additional approvals from sector authorities.
Yes. Law No. 189-11 permits real estate trusts known as fideicomisos that can hold land, manage presales, and secure financing. Trusts can help segregate assets, improve governance, and facilitate phasing. They require a formal trust agreement with a licensed trustee and should be aligned with tax and regulatory requirements.
Default remedies should be clearly stated in the lease, including late fees, default notices, cure periods, and grounds for termination. If eviction is necessary, you will need to follow statutory notice and court procedures. Courts can order eviction and payment of arrears, but timelines vary. Proper documentation and, when possible, lease registration can strengthen enforcement.
Hospitality and certain mixed use projects in La Altagracia may qualify for tourism incentives under Law No. 158-01, which can include tax exemptions for qualifying assets and services. Availability depends on project type, location, and compliance with program criteria. Early assessment with counsel and a qualified consultant is advisable.
Registry of Titles Registro de Títulos and the Real Estate Jurisdiction Jurisdicción Inmobiliaria for title certificates, lien searches, and recordings.
National Cadastral Survey authority Dirección Nacional de Mensuras Catastrales for cadastral plans and deslinde approvals.
Municipality of Salvaleón de Higüey Ayuntamiento de Higüey for land use rules, construction permits, signage, and occupancy certificates.
Ministry of Environment Ministerio de Medio Ambiente y Recursos Naturales for environmental permits and licenses under Law No. 64-00.
Ministry of Tourism Ministerio de Turismo for sector specific requirements and eligibility for tourism incentives under Law No. 158-01.
General Directorate of Internal Taxes Dirección General de Impuestos Internos DGII for ITBIS, transfer tax, property tax thresholds, and withholding guidance.
Civil Aviation authority Instituto Dominicano de Aviación Civil IDAC for height clearances where applicable near flight paths and airports.
Local chambers of commerce and construction guilds for business registries, arbitration services, and contractor references in La Altagracia.
Professional associations of notaries and surveyors for locating licensed notaries públicos and agrimensores.
Licensed trustees fiduciarias authorized under Law No. 189-11 for real estate trust structures.
Define your objective and constraints. Clarify whether you are buying, leasing, financing, or developing, your timing and budget, and any special requirements such as tourism use or phased construction. This frames due diligence and deal structure.
Engage local counsel early. Retain a commercial real estate lawyer experienced in La Altagracia to coordinate title, cadastral, tax, environmental, and municipal issues. Ask about recent transactions in Salvaleón de Higüey and expected timelines for the relevant registries and offices.
Order preliminary due diligence. Obtain title and lien certificates, the cadastral plan, zoning and land use information, and any existing permits or condominium documents. For development land, consult an architect and engineer to test buildability, access, utilities, and code compliance.
Structure the deal and taxes. With your lawyer and tax advisor, determine the appropriate vehicle individual, company, or trust, negotiate letters of intent and contracts, and plan for transfer tax, mortgage registration, ITBIS on leases, and any available incentives.
Plan for permits and compliance. Map out required municipal, environmental, and sector approvals, application materials, and realistic timelines. Build these conditions into your contracts and financing commitments.
Close and record. Execute notarized instruments, pay applicable taxes and fees, and record transfers and mortgages at the Registry of Titles. Confirm issuance of the updated certificate of title and any collateral registrations.
Set up post closing management. Calendar tax filings and payments, ensure lease invoicing and ITBIS compliance, maintain insurance and safety certifications, and keep corporate and trust governance documents current. Establish a response plan for disputes to protect value.
Important note. This guide is for general information only and is not legal advice. Laws and administrative practices change, and specifics can vary by property and transaction. Consult a qualified Dominican attorney before taking action.
