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Ease of Doing Business in

Dominican Republic

Dominican Republic Download Profile (1773.7KB, pdf)
Region Latin America & Caribbean
Income Category Upper middle income
Population 10,528,391
GNI Per Capita (US$) 6,130
City covered Santo Domingo

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 103 103
0
59.35 59.08 down
0.27
Starting a Business 115 108 down
7
83.34 83.12 up
0.22
Dealing with Construction Permits 45 44 down
1
75.20 75.01 up
0.19
Getting Electricity 148 151 up
3
52.18 50.58 up
1.60
Registering Property 82 83 up
1
65.61 65.17 up
0.44
Getting Credit 101 97 down
4
45.00 45.00
-
Protecting Minority Investors 87 85 down
2
53.33 53.33
-
Paying Taxes 129 131 up
2
60.70 60.33 up
0.37
Trading across Borders 58 56 down
2
83.51 83.51
-
Enforcing Contracts 131 129 down
2
51.03 51.03
-
Resolving Insolvency 160 160
-
23.55 23.70 down
0.15

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

82

DB 2016 Rank:

83

Change in Rank:

up1

DB 2017 DTF (% points):

65.61

DB 2016 DTF (% points):

65.17

Change in DTF (% points):

up0.44

STANDARD PROPERTY TRANSFER
Property value DOP 13,705,646
City Santo Domingo
Indicator Dominican Republic Latin America & Caribbean OECD high income
Procedures (number) info_outline 6 7.1 4.7
Time (days) info_outline 45 68.6 22.4
Cost (% of property value) info_outline 3.5 5.8 4.2
Quality of the land administration index (0-30) info_outline 14.5 11.9 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain a judicial status certificate from the title Registry Office.

    Agency: Title Registry Office

    A non-encumbrance certificate ("Certificado del Estado Jurídico del Inmueble") must be obtained from the Title Registry Office in order to ensure that the property has no liens and there are no other conflicts related to it. The time varies in each district. In Santo Domingo it takes about 15-20 days, while in the interior of the country it is faster. The fees to obtain this certificate were increased in September 2015 by decision of the Council of the Judiciary laid down in the minutes No. 25/2015 of June 15th 2015.

    15 - 20 days (simultaneous with Procedure 2 and 3) DOP 1,040 (DOP 1,000, plus stamp duties for DOP 30 (Law 91/83) and DOP 10 (Law 33/91)
    * 2

    Site inspection to establish the exact location of the property

    Agency: Surveyor (agrimensor)

    A surveyor ("agrimensor") inspects the site in order to establish the exact location of the property. This is not mandatory, but a way the buyer has to protect against potential problems.

    2 days (simultaneous with Procedure 1 and 3) DOP 5,000 – 12,000
    * 3

    Obtain the appraisal of the property and the tax certificate at the Dirección General de Impuestos Internos (Tax Authority)

    Agency: Tax Authority (Dirección General de Impuestos Internos)

    The parties must request the valuation of the property for the payment of the transfer tax. A certificate is also obtained at the DGI stating that the real estate taxes are up to date.

    5 to 7 days (simultaneous with 1 and 2) DOP 300 to obtain the tax certificate
    4

    Notarization of the sale purchase agreement

    Agency: Notary

    After the agreement is reached and the documentation has been exchanged by the parties, the sale purchase agreement must be notarized by the public notary. The Notary can no longer freely establish his fees after the enactment of the Notarial Law No. 140-15 (which institutes the Dominican Bar of Notaries (Colegio Dominicano de Notarios) in August 2015. The Notaries have the obligation to observe the schedule of fees set forth in this law which are:


    Art. 66: For every hour of service: DOP 1,000. After three hours, DOP 2,000 per hour.


    Art. 66 A) Sale and purchase agreement fee schedule:


    Between DOP 1000.01 to DOP 100,000: DOP 3,000

    Between DOP 100,000.01 to DOP 200,000: DOP 5,000

    Between DOP 200,000.01 to DOP 500,000: DOP 10,000

    Between DOP 500,000.01 to DOP 1,500,000: DOP 20,000

    Between DOP 1,500,000.01 to DOP 3,000,000: DOP 25,000

    Between DOP 3,000,000.01 to DOP 5,000,000: DOP 30,000

    Between DOP 5,000,000.01 to DOP 10,000,000: DOP 40,000

    Between DOP 10,000,000.01 to DOP 20,000,000: DOP 50,000

    Between DOP 20,000,000.01 to DOP 30,000,000: DOP 60,000

    Between DOP 30,000,000.01 to DOP 40,000,000: DOP 70,000

    Between DOP 40,000,000.01 to DOP 50,000,000: DOP 80,000

    Between DOP 50,000,000.01 to DOP 100,000,000: DOP 100,000

    Between DOP 100,000,000.01 to DOP 150,000,000: DOP 200,000





    1 day Notarization fee of DOP 50,000.

    Fee schedule to Notarize the sale agreement is the following:

    From DOP 1,000.01 to DOP 100,000.00: DOP 3,000.00;
    From DOP 100,000.01 to DOP 200,000.00: DOP 5,000.00;
    From DOP 200,000.01 to DOP 500,000.00: DOP 10,000.00;
    From DOP 500,000.01 to DOP 1,500,000.00: DOP 20,000.00;
    From DOP 1,500,000.01 to DOP 3,000,000.00: DOP 25,000.00;
    From DOP 3,000,000.01 to DOP 5,000,000.00: DOP 30,000.00;
    From DOP 5,000,000.01 to DOP 10,000,000.00: DOP 40.000.00;
    From DOP 10,000,000.01 to DOP 20,000,000.00: DOP 50,000.00;
    From DOP 20,000,000.01 to DOP 30,000,000.00: DOP 60,000.00;
    From DOP 30,000,000.01 to DOP 40,000,000.00: DOP 70.000.00;
    From DOP 40,000,000.01 to DOP 50,000,000.00: DOP 80,000.00;
    From DOP 50,000,000.01 to DOP 100,000,000.00: DOP 100,000.00;
    From DOP 100,000,000.01 to DOP 150,000,000.00: DOP 200,000.00;
    5

    Payment of taxes at the Dirección General de Impuestos (Tax Authority)

    Agency: Tax Authority (Dirección General de Impuestos Internos)

    After the inspection is over and the value of the property is calculated, a tax of 3% of the property value must be paid before the "Dirección General de Impuestos Internos" (Tax Authority) before registering the property transfer, by virtue of de “Eficiencia Recaudatoria” Law No. 173-07 dated July 17th, 2007.


    If there is a difference between the property value indicated in the purchase agreement and the one estimated by the Internal Revenue Department upon valuation, the higher value will be the one considered as valid for calculation of this transfer tax.


    However, said law provides an exemption of this tax in cases of transfer of real estate properties acquired by means of loans with financial institutions and cooperatives, if such real estate property has a value under DOP$1,000,000.00 adjustable upon inflation.


    The property tax must be paid within the six (6) months following to the Sale and Purchase Agreement entered by the parties. Otherwise, surcharges will be applied. Surcharges amount to 10% of the sum not paid (the corresponding transfer taxes) for the first month or fraction of the month. To any additional delays the Tax authorities will charge a 4% (per month or fraction) over the 10% plus a 1.73% indemnity (per month or fraction).


    Moreover, on July 10, 2009, Law 182-09 was enacted granting a tax exemption on the 2% that must be paid to record a mortgage. This exemption only applies when it is proved that a new loan/mortgage has been obtained to pay off an existing loan secured with the same land. Consequently, the former mortgage would be cancelled to record the new one, with no additional cost.


    Stamp duties are required to be paid by Law 33-91 and Law 91-83 as well before registering the deed.

    1 day 3% of property value (transfer tax)
    6

    Buyer files the property transfer request before the Title Registrar´s Office

    Agency: Property Registry ("Oficina de Registro de Títulos")

    When filing request for property registration before the Title Registrar´s Office, stamp duties are paid (Art. 13 of Law 140-2015: DOP 100 for the Notarial receipt; 30 DOP according to Law 91; and 20 DOP according to Law 33/91). Additionally, Article 42 (2) of Law 108/05 establishes a special contribution to the "Fondo de Garantía de Inmuebles Registrados" of DOP 5,000 to be paid every time a new Certificate of Title is issued after a property transaction (in practice, this Fund has not been created yet and Registrars are not requiring them). After all payments have been made and all documents are ready, the buyer will apply for registration of the property under his name at the Property Registry.

    140-201

    The registrar will analyze the documentation and, if everything is correct, will register the property under the name of the buyer, issue a new Certificate of Title in the name of the buyer, cancel the old Certificate and will set the date for giving the new title to the buyer.

    Because of the higher workload, this procedure takes longer in Santo Domingo and Santiago than in other provinces, taking between 20 and 30 days to complete this procedure.


    However, the “Ley de Registro de la Propiedad Inmobiliaria”, passed on March 2005 to replace the previous law from 1947, together with the "Reglamento General del Registro de Títulos" of September 2009, introduced changes into the system seen up to now. The registrar should take no more than 45 days to qualify the transfer.


    The filed documentation shall include:


    (i) Notarized purchase agreement (obtained in Procedure 4).

    (ii) Real estate property taxes declaration; receipt of payment; and Certification issued by the Tax Authority stating the Seller is up to date on the payment of taxes on the real estate property (obtained in Procedure 5).

    (iii) Payment of stamp duties (completed in this procedure).

    (iv) Copy of identity documents for seller and buyer (such documents may vary whether seller and buyer are natural persons or companies).

    (v) Copies of their Mercantile Registration Certificate ("Certificado de Registro Mercantil") issued by the corresponding Chamber of Commerce, and

    (vi) Certificate of registration at the National Taxpayers Registry ("RNC") issued by the Dirección General de Impuestos Internos (the Tax Authority)


    It should also be noted that the Buyer is also required to file the original copy of the Title Certificate. Furthermore, if either Buyer and/or Seller are companies or legal entities, the authorities will require evidence of the corporate approval of the transaction (i.e. minutes of the meeting of the corporate body that has authorized the purchase/sale). Another relevant point is that if the Buyer and/or Seller are foreigners, they must present two different copy of their identity documents: their passport and any official identification from their country of origin.



    The land registry operates with the Torrens title system and is being digitized since 2005. All new transactions are completed digitally, but all titles created before 2005 are not digitized yet. The registry has consultation room units (“Departamento de sala de consultas”) where the registry’s electronic database is available.

    20 - 30 days DOP 150 (DOP 100 Notarial receipt (Law 140/15), plus stamp duties of 30 DOP (Law 91/83), and DOP 20 (Law 33/91))

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 14.5
    Reliability of infrastructure index (0-8) 6.0
    What is the institution in charge of immovable property registration? Oficina de Registro de Títulos
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Different databases but linked 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 3.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Anyone who pays the official fee 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.ji.gov.do/images/Resoluciones/Resolucion21-0313.pdf (page 3) ...
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.ji.gov.do/images/Resoluciones/Resolucion21-0313.pdf (page 5) ...
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, in person 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Freely accessible by anyone 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
    Link for online access: http://ji.gov.do/index.php/atencion-al-usuario/pagos-de-tasas-por-servicios
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? Yes, in person 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 0.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? No 0.0
    Land dispute resolution index (0–8) 5.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Yes 0.5
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Notary.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar; Notary.
    Is there a national database to verify the accuracy of identity documents? Yes 1.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? Tribunal de Jurisdicción Original
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 2 and 3 years 1.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015: The "Tribunal de Jurisdicción Original" specializes in land dispute matters. There are no statistics available for 2015. For 2014, 2,680 disputes were lodged in Santo Domingo.
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0