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Guide for Canadians Buying Real Estate Property in the Dominican Republic

Buying property in Dominican Republic as a Canadian

Interested in a Dominican Republic property but have no idea where to start or how to pay for it? Learn how it works and how to get the best value on your overseas money transfer.

If you’re looking to buy property in the Dominican Republic, the Dominican Republic might pique your interest as the second largest and most geographically diverse West Indies country. 

According to one study¹, the Dominican Republic is the most popular Caribbean nation, with its stunning tourist attractions, friendly people and colorful environment.

Hearing all the good things about the DR might prompt you to choose this country over others for your property purchase. This article explains the buying process for Canadians and how to get better value from your hard-earned money when paying for your property.

Why buy property in the Dominican Republic?

The Dominican Republic occupies the greater portion of the Caribbean island of Hispaniola, which it shares with Haiti. There are many incentives for Canadians to buy property in this country, including:

  • Flexible real estate market – You can find something to suit your budget whether you’re looking to spend $70,000, $10 million or somewhere in between. Options include single-family homes, condos, villas and gated communities, all with low property taxes².
  • High-income potential – The Dominican is the star attraction in the Caribbean and owning rental property could mean a higher occupancy rate and ROI.
  • Beautiful environment – DR is a dynamic place with high mountains, green valleys, breathtaking beaches, world-class resorts and diverse parks.
  • Outdoor activities – If you’re planning to join the Canadian ex-pat community, you can enjoy various outdoor activities such as golfing, hiking, caving, mountain biking, river rafting, surfing, great whale watching, wind sports, diving and snorkeling. 
  • Easy accessibility – The government is foreign investment friendly, and there are no restrictions on buying there. In addition, the international airports are close with convenient connecting flights to Canada.

There are plenty of other reasons to tap into the real estate market. You can enjoy the inclusive culture, the tropical climate and one of the fastest-growing economies³, whether you’re a small-time investor or interested in a multi-million dollar project. 

5 essential steps to purchasing property in the Dominican Republic

1. Start researching

The ultimate goal is to make an informed decision because the stakes are high when purchasing property overseas. Do your homework meticulously and investigate the Dominican Republic with a fine tooth comb so you can confidently pay for your property when the time comes.

2. Go explore your options

Take your research skills up a notch with a field trip to the DR and familiarize yourself extensively with the place before buying. Explore other locations and options until you bag a big-ticket investment.

3. Find financing

The simplest way to purchase Dominican Republic property would be to pay cash for it, but if your savings don’t add up, you can explore options like:

  • Financing from a bank in the Dominican Republic, preferably a multinational one that offers cross-border mortgages to Canadian citizens (Scotiabank comes to mind)
  • HELOC or cash refinance your mortgage 
  • Private financing from the seller

4. Enlist the services of a broker and lawyer

The best way to buy real estate in DR is by working with a trusted and experienced broker. They can discover the best opportunities and have the best updated portfolios and insights, depending on your taste and budget. 

It’s also a good idea to use a lawyer who has your best interests at heart. Your lawyer will conduct the process of due diligence, such as obtaining important documents from the seller (a contract of sale or purchase agreement).

5. Begin your property journey

Buying a property is a long-term commitment and once the property is in your name, you have to work out other issues, such as rental management. You also have the option to set up an existing home or build a new one.

Why the USD/CAD exchange rate matters?

The official currency of the Dominican Republic is the peso. However, the US dollar is the most convenient currency to use when purchasing property. Whatever amount you send is worth more if you can find a competitive exchange rate. 

Otherwise, a lower exchange rate means losing a significant chunk of your money and paying more for your property than you have to. An inferior exchange rate also leads to continuous losses should you need to transfer smaller, regular payments to cover maintenance costs, utilities and other long-term costs.

Finding the most cost-effective way to send money from Canada to the Dominican Republic is crucial, which is why the USD/CAD exchange rate matters. Use the MTFX live rate calculator now to check how this exchange rate is trending before transferring money.

Where to find the best exchange rates?

Banks and other traditional financial institutions can facilitate overseas transfers, but they’re not the best option because they offer less-than-competitive exchange rates and high transfer fees. They’re also not a good option if you want to send money to the DR in a hurry since turnaround times can be longer than five days.

The most optimal method is to use a currency specialist like MTFX that offers competitive exchange rates (3%-5% lower than banks) and low transfer fees. Dominican real estate prices⁴ typically range from US$400,000 to US$600,000, meaning you can save as much as US$20,000 to US$30,000 when you send money via a specialist.

Paying online without going to the bank

Another benefit of using a currency specialist for overseas property payments is the convenience of transacting online. When you open your MTFX account, you can skip the bank and initiate a transfer from anywhere, 24/7. MTFX’s secure online platform has automated technologies that allow you to set up regular payments without stepping into a bank branch or waiting for banking hours.

Invest more in your property with MTFX exchange rates

With a specialist foreign exchange service, you can access competitive exchange rates, low transfer fees, and convenient online payment solutions. You can also customize your international payments experience using a wide range of FX tools and personalized guidance from experts.

Register your account with MTFX today to make the most of your property purchase.

Looking to buy a home in the Europe ? Get the Best Euro Rates with MTFX

Buy property in the Dominican Republic – FAQs

Which areas of DR are lucrative for property buyers?

Take a look at places like Punta Cana, Cabarete, Santiago, Santo Domingo, Puerto Plata, and La Romana.

What costs are associated with buying property in DR?

A list of costs to consider when buying a property include the real estate agent’s fee, notary fee, annual property taxes, and transportation costs.

What are the most important factors to consider when buying an overseas property?

Factors to consider include healthcare, security, resale market and the community or neighborhood.

Popular related articles;

Sources

  1. 26 Most Popular Islands In The Caribbean
  2. Buying Real Estate in the Dominican Republic
  3. World Bank In Dominican Republic
  4. Dominica’s property market remains stable

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FAQs

Individuals and businesses who need to send money in foreign currency internationally can use MTFX’s services. The beneficiary of the transfer must have a bank account for the funds to be paid into. Personal clients usually use our services to transfer money between their own accounts in two different countries. Business clients usually use our services to transfer funds to suppliers, fund international operations, or repatriate overseas earnings.
MTFX offers currency exchange rates that are 2-5% better than those offered by the banks. Personal clients usually save hundreds of dollars per transfer and for larger transfers, the savings can run into the thousands. We also offer excellent customer service, dedicated currency specialists, and a 24/7 online platform with best-in-class technology that allows you to complete transfers from any device virtually anywhere in the world. Business customers save with better currency exchange rates and proven solutions geared towards managing and mitigating foreign exchange risk. Our solutions include forward contracts, market orders, rate alert services, and much more - all backed by great technology and great people.
Funds can be transferred via wire transfer, Electronic Funds Transfer (EFT), or ACH payment services. MTFX maintains bank accounts in all major currencies with highly-rated banks. Our banking infrastructure ensures that you can transfer funds to us quickly and securely.
Our global network of banking partners allows us to get funds to virtually anywhere in the world quickly and efficiently. Most wire transfers from MTFX will be received by your beneficiary within 24-48 hours. MTFX also offers same-day transfers that are almost instantaneous, as well as low-cost in-country payment services for your less urgent transfers. For further information please speak to one of our currency specialists.