by Sylvain Maufrais 
In the Dominican Republic, you can register your property title in your own name or in the name of a company, and each method has its own advantages and disadvantages:
In your own name
Advantages
- Administrative simplicity: Registering a property title in your own name simplifies the legal and administrative procedures associated with ownership. There is no need to create and manage a legal entity.
- Reduced costs: Notary fees and taxes may be lower as there are no incorporation fees.
- Flexibility: Property can be sold, mortgaged or bequeathed more easily without having to consult or involve partners or shareholders.
Disadvantages
- Personal liability: Any debt or dispute involving the property falls directly on the owner. This can affect the owner’s ability to obtain other credit or personal assets.
- Inheritance and Taxation: Upon the owner’s death, the property is subject to inheritance laws, which can result in estate fees and potentially family disputes.
- Limited protection: There is less protection against creditors or property-related litigation than with a corporation, which can provide a legal shield.
Company Profile
Advantages
- Asset Protection: In the event of a lawsuit or debt, liability is limited to the company’s capital, protecting the owners’ personal assets.
- Tax optimization: Depending on the structure of the company, there may be tax advantages, particularly in terms of tax deductions or tax rates.
- Professional management: A corporation may have more formalized management structures, which can be useful when managing a property, especially if it’s a large business or investment.
Disadvantages
- Cost and complexity: Incorporating and managing a company involves initial costs and annual fees, as well as the administrative complexity of running a legal entity.
- Less flexibility: Ownership decisions may require the approval of partners or shareholders, which can slow or complicate transactions.
- Transparency and compliance: Corporations are often required to publish financial information and may be subject to increased regulation, which can reduce confidentiality.
General Considerations
– Investment vs. Residence: If the property is a primary residence, filing in your own name may be more practical. For a property intended for investment or commercial activity, a corporation may offer more protection and tax flexibility.
– Local legislation: It is important to consult current Dominican legislation, as laws and regulations may change, affecting the advantages and disadvantages listed here.
– Legal advice: Before making a decision, it is strongly recommended to consult a real estate lawyer or tax advisor in the Dominican Republic for advice tailored to the specific situation.
In summary, registering a property title in one’s own name offers simpler, more straightforward management, while a corporation offers better asset protection and tax advantages, but with added complexity.
The choice will therefore depend on your objectives, personal situation and legal advice specific to the Dominican Republic.
Sylvain Maufrais, AGIREDOM
Versión Español – Version Française
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