Located west of Puerto Rico and east of Jamaica and Cuba, the Dominican Republic makes up the eastern two-thirds of the Caribbean island of Hispaniola. The Republic of Haiti makes up the remainder of the island.

What's so special about it?

Discovered by Christopher Columbus in 1492 on his first voyage to the Americans, it became the starting point for the conquering of the New World. The capital, Santo Domingo was the first city built and the Dominican Republic can claim the first cathedral, university, road and fortress built in the Western Hemisphere by the colonising European forces.

Best kept secrets?

Noreen Hayes of Aquarius Properties believes that the Dominican Republic will benefit from having more straightforward purchase procedures than other Caribbean nations because it has a refined and well planned tourism policy in place. However, the island also has a lot of problems to overcome. For example, the 2005 Annual Report of the United Nations Subcommittee on Human Development highlighted issues such as national government corruption, foreign economic interference in the country, and the rift between rich and poor.

Who lives here?

When Bill and Hillary Clinton left the White House in 2001 they chose to holiday in Punta Cana and they have since bought property in the area. The Corales Development is famously home to the designer Oscar de la Renta and singer Julio Iglesias.

What's the property market like?

"The Dominican Republic has truly gone through a transformation. The rest of the Caribbean became so expensive from a land perspective that the Dominican Republic was in a class by itself, " Scott Berman of Price Waterhouse Coopers in Miami said in the US press.

"It is still an emerging market as potential is high. It currently has 65,000 beds, but the amount of tourists coming in is rising so it has a job on its hands to increase facilities for demand, " says Noreen Hayes of Aquarius Properties.

To meet this demand the government has a budget for tourism-related infrastructure totalling 225m. Annie Egan from Egan Properties reports that in projects last year she saw capital appreciation of 40% on average, but, conservatively, she estimates current growth at 20%.

The Global Property Guide, however, finds the Dominican Republic "not profitable for foreign individuals interested in buy-to-let investments" due to low rental yields, taxes on rental income and issues with poverty and violence.

How do you go about buying property?

For sourcing up-to-date local information, the Dominican Today newspaper is a good source. When sourcing agents to buy property the Global Property Guide warns that "there is much history of fraud by real estate agents in the country, and little protection is offered to you as a buyer".

They also report that local agents tend to offer higher prices to foreigners, especially when their services are employed in English.

There are no restrictions on foreigners buying property. A lawyer or agent, once hired, will find a property and a 10% deposit is paid.

Due diligence, including title search and a survey, can be carried out and once the buyer has been satisfied and the lawyer oversees the signing of the 'Contract of Sale', final payment is made. The paperwork is then processed by the Internal Revenue Office and Title Registry Office. The registration process can take up to 107 days to process.

Where are the best places to buy?

The Central Bank reported that hotel occupancy for the first four months of 2006 reached 92% in the Punta Cana/Bavaro area and is one of the most high profile and upmarket areas. Egan also reports that the city of Santiago is a hotspot as it has just seen the opening of the biggest private hospital in the Caribbean and currently there is only one upmarket development in the area.

What's the rental market like?

Occupancy rates in the Dominican Republic traditionally stand at more than 70%. The Global Property Guide says rental returns are on average 3% or 4.8% on the coast.

However, Hayes reports that in upmarket resorts, in order to achieve the 8% rental guarantees offered buyers only need to rent properties out for 28% of the year to raise that return. Egan reports that a four-bed villa in Punta Cana will rent for 1,125 a night, while a 95,000 apartment will rent for 1,875 a month in the cities.

What's the resell market like?

A large number of the population emigrated, mainly to the US, and it is now estimated that about 1 billion per year in remittances is sent back to the country.

These now more wealthy locals make up a large part of the resale market as they look to buy property. However, they are usually reluctant to buy off-plan. Egan also reports that there is a growing middle class in the country who are interested in buying a second home, though these are mainly apartments.

What type of property is available?

In order to serve the high end of the market the island is seeing a growing trend for luxury branded hotels with the likes of the Ritz-Carlton, Conrad, and Fairmont opening residences.

This is because the all-inclusive resort model is becoming outdated and branded real estate in the form of condominiums and villas offer the hoteliers a cash injection.

Average property prices?

MRI Overseas Property in March 2007 estimated that the average price of a twobed/two-bathroom property was 200,000.

The Global Property Guide estimated that the average per square metre price of a 300sq m beach front property was 1,636, the fourth lowest in the region.

What are the tax breaks with Ireland?

Taxes and expenses on real estate transactions are roughly 5% of the sale price. Income tax is high at 30%, there is a 1% twice annual Wealth Tax, property tax is only on properties over 109,738 and capital gains is taxed the same as income.

FAST FACTS

Getting there: Britannia and First Choice fly direct from the UK or American Airlines connect from the US.

Population: 9,183,984 Currency: Dominican Peso (1 = 42.51 DOP) Weather: Tropical with temperatures averaging 23.9degreesC in January and 27.2degreesC in July, with the wet season in May.

Transport: There are seven airports. There is no rail service and while there are five major highways, roads between smaller towns are not great and drivers rarely respect rules of the road. Petrol for cars can be expensive. Buses are available and reasonable but beware unlicensed taxis.

Visitors are charged $10 on arrival.

Going out: Well known for its merengue-style music, which is lively and loud. Many of the large hotels and city locations have music for guests. Presidente is the most popular beer to drink and Brugal, Barcelo and Bermudez are known as the Three Bs of Dominican Rum. Avoid ice unless made form bottled water. Baseball is the most popular sport.

Eating Out: Many hotels are still all inclusive but there are many restaurants still available outside the resorts. Beware of salads or food washed in local water. The African culture is most prominent in the use of rice and beans in food.

Shopping: Santo Domingo has many large malls and generally the currency for shopping is dollars.

USEFUL CONTACTS
>> Irish Representative to the UN in New York (handles the area): 001-212 421 6934; www. un. int/ireland Dominican Republic Embassy in London: www. dominicanembassy. org. uk Dominican Today Newspaper: dominicantoday. com Dominican Republic Ministry of Tourism: www. godominicanrepublic. com Guide to the Dominican Republic: www. dr1. com The Global Property Guide: www. globalpropertyguide. com Association of International Property Professionals: www. aipp. org. uk Federation of Overseas Property Developers, Agents and Consultants: www. fopdac. com MyOverseasProperty: www. myoverseasproperty. ie OverseasList: www. overseaslist. com