Caribbean Comparisons Newsletter - 2014

NEWS AND INFORMATION ON LIFESTYLES,AND THE REAL ESTATE MARKET FROM CABARETE DOMINICAN REPUBLIC SOTHEBY’S INTERNATIONAL REALTY
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Best regards,
William Holden
Broker - Owner
Cabarete Dominican Republic
Sotheby’s International Realty
> WINTER EDITION 2014
The luxury real estate industry is still showing an
increase in sales globally. The market in the United
States still shows continued signs of stabilization as
prices continue to increase in many regions while listing
inventories decline closer to more normalized levels. The
international markets are still experiencing mixed results.
Asian investors continue buying outside of their
respective countries. The sales growth in the Bahamas
and Bermuda continue. We are still waiting to see what
will happen in the rest of the Caribbean and Latin
America. Our focus in this newsletter is the Dominican
Republic: what will happen both both this year and next?
Caribbean Comparisons
This issue of our newsletter focuses on a comparison of
Caribbean Islands around the Dominican Republic. Due
to owner testimonials, it’s a bit longer than normal. I have
spent a lot of time in tropical locations in both the Pacific
and Mediterranean, but my heart always brings me back
to the Caribbean. It’s a special place for me because I
love the water, weather, culture, and things to do. We all
go through different phases in our lives, but there’s
always time for the Caribbean Lifestyle.
Is the Dominican Republic Fashionable Right Now?
It’s not always about the bottom line! Although
location, value and quality are important, it may not
always be about that. Especially when comparing
properties equal in location and quality. The decision
to invest, then, may rely more on “what’s in fashion”
than it does on economic or lifestyle conditions.
So is the Dominican Republic “In Fashion” now? Are
people buying here because it’s in vogue? I don’t
think so. Can that change? Yes!
To find out reasons for this, we explored Caribbean
islands around us that include the following:
1. The Bahamas
2. Turks & Caicos
3. Dominican Republic
4. Puerto Rico
5. St. Thomas
Most of us agree that fashion is a fleeting thing.
Sweaters and pants worn in school may not be in
fashion now. The same applies to restaurants and
bars: one week they may “in fashion” and the next
week “out of fashion”. Sometimes people are just
fickle. And at times, they may make decisions
based on fashion rather than common sense.
However, fashion may not always be correct in the
long run. That’s why some people prefer classic
because it seems to never go out of style. Believe it
or not, I think Caribbean Islands may be subject to
the same type of fashion seeking. If this is the case,
it is in our best interest to discover what is currently
driving fashion. At the same time, we should
promote classic features of the Dominican Republic
that enhance the Caribbean lifestyle and
experience. If we do that, I think common sense will
return and put the DR back into fashion.
CDR-SIR Page 1

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CDR-SIR Page 2
Bahamas
Land Area: 3,888 sq.mi.
Language: English
Population: 316,182
The Bahamas is one of the wealthiest Caribbean
countries with an economy heavily dependent on tourism
and offshore banking. Tourism together with tourism-
driven construction and manufacturing accounts for
approximately 60% of GDP and directly or indirectly
employs half of the archipelago's labor force. Prior to
2006, a steady growth in tourism receipts and a boom in
construction of new hotels, resorts, and residences led to
solid GDP growth. Since then tourism receipts have
begun to drop off. The global recession in 2009 took a
sizeable toll on the Bahamas, resulting in a contraction in
GDP and a widening budget deficit. The decline
continued in 2010 as tourism from the US and sector
investment lagged.
Financial services constitute the second-most important
sector of the Bahamian economy and, when combined
with business services, account for about 36% of GDP.
The financial sector, however, is currently smaller than it
has been in the past because of the enactment of new
and stricter financial regulations in 2000 that caused
many international businesses to relocate elsewhere.
Manufacturing and agriculture combined contribute
approximately a tenth of GDP and show little growth,
despite government incentives aimed at those sectors.
Overall growth prospects in the short run rest heavily on
the fortunes of the tourism sector.
Property Values
Operating Costs
Values for villas range from $2,000 to $8,000 per sq.
meter with an average of $6,000 /m2. Ocean-front
condos average $5,000 /m2. Vacant residential land
ranges in price from $50,000 to $2 Million. Building
costs are $3,000 to $3,500 per square meter.
Ocean Club - $5.9 Million ($6,351 /m2)
This colonial style villa contains 6 bedrooms with 7-½
baths in 929 m2 (10,000 s.f.) of living space. It is
situated in Ocean Club Estates, which features an 18-
hole Championship golf course designed by Tom
Weiskopf, tennis courts and a private beach club on the
world-famous Paradise Beach.
Bayroc - $1.1 Million ($5,392 /m2)
This gated beachfront condominium has 3 bedrooms
with 3-½ baths in 204 m2 (2,200 s.f.) of living space. It
has spectacular ocean views, a wrap around balcony,
and is only a few walking steps down to the white sandy
beach. Amenities include two swimming pools,
waterside gazebo, and tennis courts.
Flights - As you can see from the chart, flights to The
Bahamas are frequent and relatively inexpensive. For
example, there are 36 daily flights from Miami at $285.
Compare that to Puerto Plata in the Dominican
Republic where there is only 1 flight a day at $674,
(which is a problem we are trying to address).
Owner Fees generally range between $7 to $10 per
square foot, per year. Thus, a 1,000 square foot unit
(100 m2) would have an annual cost of $10,000 and a
monthly fee of $833. By the same token, a 3,000 s.f.
unit (300 m2) could have a monthly fee of $2,500 per
month. This does not normally include insurance or
electricity.Source: Know Your Country

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CDR-SIR Page 3
Dominican Republic
Language: Spanish
Population: 10,088,598
The Dominican Republic is not a major regional financial
center, despite having one of the largest economies in the
Caribbean. It has long been viewed primarily as an
exporter of sugar, coffee, and tobacco, but in recent years
the service sector has overtaken agriculture as the
economy's largest employer. This is due to growth in
telecommunications, tourism, and free trade zones. The
economy is highly dependent upon the United States, the
destination for nearly 60% of exports. Remittances from
the US amount to about a tenth of GDP, equivalent to
almost half of exports and three-quarters of tourism
receipts.
The country suffers from marked income inequality; the
poorest half of the population receives less than one-fifth
of GDP, while the richest 10% enjoys nearly 40% of GDP.
High unemployment and underemployment remains an
important long-term challenge. The Central America-
Dominican Republic Free Trade Agreement (CAFTA-DR)
came into force in March 2007, boosting investment and
exports and reducing losses to the Asian garment
industry. The growth of the Dominican Republic's
economy rebounded in 2010 from the global recession,
and remains one of the fastest growing in the region.
Source: Know Your Country
Property Values
Villa Windsong - $3.6 Million ($4,235 /m2)
This beach-front villa located in Sea Horse Ranch
contains 6 bedrooms - 7 baths in 850 m2 (9,149 s.f.) of
living space. A tropical masterpiece where the line
between outdoor and indoor living disappears creating
an ambiance of nature and enjoyment rarely available
in residences anywhere around the world.
Harmony - $775,000 ($2,947 /m2)
This beach-front condo is one of the most exclusive
addresses in Cabarete. It has 3 bedrooms, 3 baths and
contains 263 m2 (2831 s.f.) of living space. A spacious
media room can be set up as a den or fourth bedroom.
Each building has an elevator and only 2 residences
per floor.
Owner Fees generally range between $2 and $3 per
monthly fee of $208. By the same token, a 3,000 s.f.
unit (300 m2) could have a monthly fee of $625 per
electricity.
Operating Costs
Asian influences are seen in the raised wooden
entrance and the outdoor walkways, as well as the
beachfront gazebo facing the sunrise for yoga,
reading, or meditation. Native coralina floors
containing dramatic shell shaped fossils paired with
local river stone inlays inspire you to relax and live in
harmony with the sound of the ocean.
Flights - There is only one flight a day to Puerto Plata in
the DR at a cost of $674 (which is a problem we are trying
to address). For comparison, the multiple flights to
Nassau are $285, and to St. Thomas (even greater
distance) are $374. Similarly, the flight from New York to
Puerto Plata (not on American) costs only $527.
Moreover, the flight from NYC to San Juan is only $309.

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CDR-SIR Page 4
Turks & Caicos
Land Area: 166 sq.mi.
Language: English
Population: 46,400
The Turks and Caicos are a British Overseas Territory
consisting of the larger Caicos Islands and the smaller
Turks Islands. The whole island group is geographically
contiguous with the Bahamas, but they are politically
separate. The economy is based on tourism, offshore
financial services, and fishing. Most capital goods and
food for domestic consumption are imported. The US is
the leading source of tourists, accounting for more than
three-quarters of the 175,000 visitors that arrived in 2004.
Major sources of government revenue also include fees
from offshore financial activities and customs receipts.
The total population is about 46,000, and approximately
27,000 live on Providenciales in the Caicos Islands. There
are world class hotels, spas, restaurants, and stretches of
uncrowded beaches and vibrant coral reefs. Things to do
include golf, diving, snorkeling, water sport, “flow-riding”,
bird-watching, island tours, and Humpback Whale
watching.
A great number of tourists who visit the Turks and Caicos
Islands are Canadian. Owing to this, some politicians in
Canada and the Turks and Caicos have suggested some
form of union between Canada and the British territory.
Property Values
Azure Villa - $6.0 Million ($10,772 /m2)
This beach-front villa contains 5 bedrooms with 4-½
baths in 557 m2 (6,000 s.f.) of living space. From
southern entrance to northern exit it is a seamless
indoor / outdoor living experience. It has an 18 ft high,
37 ft wide fully retractable glass wall, and a 27 ft
exposed beam vaulted ceiling.
Grace Bay - $1.1 Million ($6,186 /m2)
with 2-½ baths in 177 m2 (1,909 s.f.) of living space. It
enjoys stunning views of the beach and reef beyond
from its preferred corner positioning, complete with
sliding pocket doors. A bonus 2010 Jeep Wrangler in
excellent condition is included in the price.
The Windsong Resort is a truly refreshing boutique
property, and the exclusive Turks and Caicos member
of Preferred Boutique Hotels. It is situated on 435 feet
of prime beach frontage on world-famous Grace Bay,
and directly on the island’s best coral reef,
monthly fee of $1,200. By the same token, a 3,000 s.f.
unit (300 m2) could have a monthly fee of $3,600 per
electricity.
Operating Costs
Flights - There are numerous moderately priced daily
flights. As an example, there are 8 daily flights from Miami
at an average fare of $496. Compare that to Puerto Plata
in the Dominican Republic where there is only one (1)
flight a day at a cost of $674 (which is a problem we are
trying to address).

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CDR-SIR Page 5
Puerto Rico
Language: English+Spanish
The Commonwealth of Puerto Rico is a possession of
the United States. It consists of Puerto Rico plus the
adjacent islets of Vieques, Culebra, and Mona. Puerto
Rico has a mountainous, tropical ecosystem with very
little flat land and few mineral resources.
Under the Commonwealth formula, residents of Puerto
Rico lack voting representation in Congress and do not
participate in presidential elections. As U.S. citizens,
Puerto Ricans are subject to military service and most
federal laws. Residents of the Commonwealth pay no
federal income tax on locally generated earnings, but
Puerto Rican government income-tax rates are set at a
level that closely parallels federal-plus-state levies on the
mainland.
Puerto Rico is a major hub of Caribbean commerce,
finance, tourism, and communications. San Juan is one
of the world's busiest cruise-ship ports, and Puerto Rico's
standard of living continues to be among the highest in
the Western Hemisphere. Its future political status,
however, remains unclear. Source: Know Your Country
Property Values
Macleary - $5.0 Million ($12,919 /m2)
This villa contains 6 bedrooms and 3-½ baths in 387
m2 (4,163 s.f.) of living space. A strikingly beautiful
Condado Beach home, the property was designed
by renowned architect Pedro Adolfo de Castro,
whom has several works registered with the US
National Registry of Historic Places.
Lofty in Weco - $2.1 Million ($5,775 /m2)
Westward of Condado Beach is the newly developed,
luxury high-rise district of WeCo. Each of the 4 luxury
skyscrapers offers unique opportunity, representing the
trend in lifestyle evolution for Puerto Rico in the 21st
century. Built in 2007, Caribe Plaza offers 1 apartment
per floor, private foyer from elevator access, leveled
garage parking, doorman service and facilities
management. Lofty, light filled and modern, this 14th
floor unit has south western exposure, overlooking the
San Juan lagoon, ocean and city skyline. Floor to
ceiling windows highlight the living with extended
overhang terrace, dining and den.
unit (300 m2) could have a monthly fee of $3,600.
This does not include insurance or electricity.
Operating Costs
Flights - There are numerous flights to San Juan from
Miami at a cost of $266. Compare that to Puerto Plata in
the DR where there is only one (1) flight a day at a cost
of $674 (which is a problem we are trying to address).
Also note that the 4 hour flight from New York to San
Juan is only $309, which is twice the flying time and half
the price of the flight from MIA to POP.

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CDR-SIR Page 6
St. Thomas
Language: English
St. Thomas is part of the U.S. Virgin Islands which also
includes St. Croix and St. John. St. Thomas was chosen
for this newsletter because it is the only island with an
airport large enough to service commercial wide-body
aircraft. The sailing crowd to the British Virgin Islands to
the east generally comes from San Juan. Sailing to the
BVI from the east side of St. Thomas is also possible.
Tourism is the primary economic activity and accounts
for 80% of GDP and employment. The islands host
nearly 3 million visitors a year. The manufacturing sector
consists of petroleum refining, rum distilling, textiles,
electronics, pharmaceuticals, and watch assembly. One
of the world's largest petroleum refineries is at St. Croix.
The agricultural sector is small, with most food being
imported. International business and financial services
are small but growing components of the economy. The
islands are vulnerable to substantial damage from
storms. The government is working to improve fiscal
discipline, to support construction projects in the private
sector, to expand tourist facilities, to reduce crime, and to
protect the environment.
Property Values
Sea Glass - $2.75 Million ($8,160 /m2)
This beach-front villa contains 4 bedrooms with 4 baths
in 337 m2 (3,625 s.f.) of living space. This fully
refurbished beachfront home on a large multi-level lot
has the rare advantage of a private dock and private
boat mooring on Cowpet Bay. Renovated in 2011 with
custom kitchen, high end appliances, new flooring.
Cabrite Point - $649,900 ($5,284 /m2)
with 2 baths in 123 m2 (1,320 s.f.) of living space. It is
close to beaches, restaurants, all the activities of Red
Hook. It offers amazing views of St. John and the BVI.
Newly remodeled kitchen and baths, new oceanfront
decks, beautifully furnished and ready for entertaining.
unit (300 m2) could have a monthly fee of $3,600. This
does not normally include insurance or electricity.
Operating Costs
This distinctive and unique home is the perfect option
for a permanent residence or your island oasis holiday
home. Conveniently located in a gated community on
the east end of St. Thomas, "Sea Glass" is just
minutes away from Red Hook restaurants, shops and
access to world renowned fishing grounds and sailing
in the BVI.
Flights - There are numerous flights to St. Thomas from
Miami for a fare of $374. Compare that to Puerto Plata in
the Dominican Republic where there is only one (1) flight
per day at a cost of $674 (which is a problem we are
trying to address). Also note that the flight from New
York to St. Thomas is only $428, which is farther, but
much less than the cost from MIA to POP on AA.

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CDR-SIR Page 7
Market Comparisons - (Tax Comparisons in Appendix)
After talks with various brokers in the islands above, I
discovered they are experiencing record years and real
estate sales in the hundreds of millions of dollars.
Along with that, they are experiencing incredibly more
“Requests for More Information” than we are here in
the Dominican Republic. To be clear, their marketing
techniques are very similar to the ones we use here in
the Dominican Republic. So what’s up with that?
What amazes me is the high construction cost, high
buying cost per meter, and the high cost of ownership
in the English speaking Caribbean Islands. However, it is
offset by lower air fares and the higher frequency of
flights these other islands experience. Moreover, their
overall tax structure is more favorable than ours in the
Dominican Republic. So is that the difference?
Or could it be negative perceptions about the Dominican
Republic? Why else would people pay higher prices and
higher operating costs when there is a tropical paradise
just to the south with a warm and gracious culture that
welcomes visitors and new residents with open arms.
Based on interviews, it seems that the ratio of visiting
tourists who wind up buying property is greater in the
English speaking Caribbean Islands. This may vary,
however, among the different resort areas of the
Dominican Republic.
CABARETE - Cabarete is well known for its water
sports. Both Sosua and Cabarete are well known for
nightlife. However, the kiteboarders on the beach nor
the party goers at night do not seem to be turning into
buyers right now. And if they do, we do not currently see
a lot of these visitors purchasing higher priced properties
as they have done in the past.
SAMANA PENINSULA - Las Terrenas has beautiful
beaches, great cuisine, lifestyle, activities, and local
island color. Samana includes the Bannister Hotel and
Marina, and developments with both mountain views
and ocean views throughout the area. Many visitors
become buyers in this wonderful tropical paradise.
CASA de CAMPO - There is a high conversion rate of
visitors to buyers in this resort. For some reasons why
this is true, please see the Casa de Campo article in
“News of Note” at the end of this newsletter.
Tourism Conversion
PUNTA CANA - Many people who go to Punta Cana
seem to think it is an island in itself... and not part of
any country. In reality, it is not just a resort, but also a
city with an exquisite lifestyle. As such, there is a high
ratio of vacationers who turn into buyers.
In addition, one thing that makes Punta Cana unique is
their control over the international airport and the
corresponding landing fees. And, they are fully aware
that over-aggressive taxes on airline tickets could
affect tourism. So, although they’re the only game in
town, they do keep in touch with reality and continue to
enhance their tourism business. In turn, this has a
higher ratio of tourists who turn into high-end buyers.
CONCLUSIONS - The Dominican Republic does not
currently seem to be the fashion “hot spot” everyone is
seeking at this time. However, it has all the classic
elements needed to be be the next hot spot.
The Dominican Republic has all types of lifestyles ranging
from resorts like Punta Cana and Casa de Campo to more
private and varied lifestyles on the north coast. Plus, it has
cosmopolitan and medical features that other islands may
not have.
As for the future, the Dominicans are a very intelligent
people, and they are smart enough to know if policies are
“killing the goose laying the golden eggs”. Thus, I don’t
think there will be any continuous downward trend in
market conditions, which were caused initially by a flat
world-wide market, then an ensuing sluggish recovery.
That being said, I think the DR is simply a year or two
behind the growth being seen in other parts of the world
and Caribbean. But that’s just me. How about owners and
residents who have their own perceptions? For these
insights, please see “Owner Testimonials” following the
“Perceptions vs. Reality” section on the next page.

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CDR-SIR Page 8
Is Perception Reality?
There are many alternatives in the Dominican Republic if
you don’t speak English. If you are a tourist, there is no
problem because all the quality resorts have English
speaking staff. This may also be true if you are an
investor and own in an exclusive gated community where
much of the staff speaks English. If this is not the case,
there are still options. For not much money on a monthly
basis, you can hire a full-time driver, maid, nanny, or
landscaper who speaks English and they can be your
personal family guide. The Dominicans are a very warm
and gracious culture and welcome international guests
with open arms. And, learning the local culture is part of
the wonderful memories that can be gained by spending
time in the Dominican Republic.
Of significant importance to foreign investors is the fact
that the professional attorneys and accountants speak
both English and Spanish. In fact, they may become
some of your best friends, and in addition, help in
introducing you into the local society and culture.
Haciendas El Choco - Villa 20
Yes, there is some crime and violence in the
Dominican Republic. However, the perception
is much more than reality. Moreover, can you
tell me where there is no crime and violence?
Like any country, crime and violence tend to be
higher in larger cities where poverty might be
higher and education levels lower. For me,
there are certain sections of Miami or New York
that I would never visit. But I love New York City
and lived there for many years.
Talk about fashion… New York is the place to
be. Is there crime and violence in New York?
You bet! Does that mean you won’t go there?
Maybe so, maybe not. That’s up to you. But if
you don’t, you will miss out on an incredible
experience.
So what about the Dominican Republic? Is
crime and violence an issue? For those of us
who know the country, and both live and invest
here, we would emphatically say “NO”.
Again, it’s still all about common sense. There
are some places, and certain times of the day,
that you may not want to go. However, can you
walk along the beach with your family, or walk
alone on the beach with a loved one with a full
moon and feel safe… yes!
This is also true in gated resort or residential
communities with world class security staff and
procedures where children can play and have
fun all day long. Please see the owner
testimonials on the following pages to get their
views on the DR.
Many people might say not to mention negatives, but I think
some of the issues below need to be addressed. This is
especially true if the negatives are perception only and
have nothing to do with reality. At the beginning of this
newsletter, I talked of fashion and it’s importance in some
decision making. For example, I met with an investor who
said he would never buy in the Dominican Republic
because it was part of Haiti. To me, that’s like saying I
would never invest in the USA because it’s part of Mexico.
My point is that this decision not to invest here is not well
founded. Quite simply, even though we share the same
huge island (continent if you will), I don’t think the Haiti
relationship is an issue from either an investment or lifestyle
perspective.
In fact, I have a personal respect for the Haitian people.
They are hard working, in many cases multi-lingual, and
have a great sense of family unity. Yes, they have made
some mistakes with their own country, but that does not
directly affect the Dominican Republic. The border between
the two countries is extremely mountainous, and when
allowed to enter the DR with proper documentation, the
Haitian people can be great participants in both industry
and society.
They Don’t Speak English
This perception has some reality to it. However, some
people do speak English, some don’t … so what! Does
that mean you won’t go to Paris or Rome because they
don’t speak English. The reality is that you may lose more
than you gain if you act negatively on perceptions. A fact is
that I came here over ten years ago and did not speak a
word of Spanish. Now I own many properties, run a
successful business, and am very active in the local
communities. I have also made life-long friends.
Crime and Violence

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CDR-SIR Page 9
Owner Testimonials
1. Why and when did you decide to invest
in the Dominican Republic?
2. Why did you choose the community
where your property is located?
3. What other places were considered
when you made your decision?
4. Why are you interested in selling your
property now? (Answers Below.)
Golden Dolphin - $10 Million ($4,305 /m2)
We invested in the Dominican Republic because we
have a Paso Fino horse farm in Florida and the DR is
the foundation country for the Paso Fino horse. We
chose Cabrera on the north coast for a variety of
reasons. First, this area has San Diego type weather
all year long and offers some of the best real estate
investment opportunities. The beaches are similar to
Hawaii and are considered to be some of the best in
the world. As a side interest, we also have the ability to
be involved with baseball on a year round basis.
Proximity to Playa Grande was also important to us. It
is considered by many to be among the top 5 golf
courses in the world. The Armani Hotel (now under
construction by the Armani Hotel Group) and another
large investment group from New York, have recently
made significant investments in the North Coast of the
Dominican Republic thereby amplifying the real estate
development opportunities in the area.
I am interested in selling now because I have other
investments that need attention (some of which are in
other parts of the DR). Because of my love for this
country, I will always remain connected to her.
Sunrise Villa - $4.9 Million ($5,274 /m2)
We originally looked in the northern Michigan area in
the USA, and Jamaica in the Caribbean. In addition,
we had been visiting the Dominican Republic for
several years. To us, the DR seemed to be a good,
safe place to invest. Title insurance was available,
crime was non-existent in most areas, and the DR
was very popular with American tourists. In the year
2000, we saw land for sale in Cabrera on the north
coast of the Dominican Republic.
We loved the beach, proximity to town, and the
natural beauty of the development. In our opinion, this
was the best area in the DR, so in 2001, we became
one of the first buyers in this new community and got
our favorite site What we have built up over the years
is truly unique. However, after nearly 20 years visiting
the DR, and 13 years as a villa owner in Orchid Bay,
its time for us to move on to the next chapter of our
lives.
La Mulata 3 - $14.9 Million ($2,295 /m2)
We were like-minded individuals living in South Africa
and wanted to build a self-supporting community for
all of our residents. We viewed the Dominican
Republic as a paradise where we could have our
independence, but also access to culture and other
necessities. The community now has 19 residential
villas and 5 auxiliary buildings on 89,135 square
meters (22 acres). We are now ready to return to
Europe and build another community there.
Various owner’s of our properties listed for sale
were asked the following questions:
All of the properties shown here can be viewed in
more detail by going to http://sothebysrealty.com and
selecting Dominican Republic.

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CDR-SIR Page 10
Owner Testimonials (cont.)
Hacienda el Choco # 20
$3.75 Million ($2,018 /m2)
I have businesses in various locations, but I like the
Spanish culture. I lived in Cuba for several years and
moved to the Dominican Republic in 1999. I owned a
house in Sea Horse Ranch for a while, but because I
love flowers and gardening, we needed more space.
So, we moved to Haciendas el Choco and built a
20,000 square foot villa on 15,000 m2 of land (3.7 ac)
and now have beautifully landscaped gardens and
manicured lawns. Now, at 77 years of age, our villa is
simplyt too large for 2 people. We still love the DR and
plan on moving to a smaller beach-front location.
Castellamonte - $4.25 Million ($3,053 /m2)
My decision to invest in the Dominican Republic was
heavily weighted by emotion rather than finance. The
people of the country are its most valuable asset, and
therefore, it was the open, friendly people with their
thousand-watt smiles that attracted me to invest here.
The Caribbean is full of beaches and warm weather
but the DR is the only place you can enjoy these
unique social interactions.
We wanted to live on the north coast because the
weather is best there. Cabrera is unique in that you
face due east (even though on the north coast) so you
can enjoy the trade winds all year around. Also, we
were seeking a destination that was as far from the
overcrowded all-inclusive resorts that we could get. It
also came down to location. In 3 hours from New
York, I have my toes in the sand, a cool beer in my
hand, and watching the crazy, loving Dominican
people do whatever it is that they fancy at that time.
My children are now grown and have moved to the
same area where they were raised outside of
Philadelphia and, most of all, they all have provided
us with grandchildren now. We prefer to be the
grandparents who live down the street as opposed to
the ones in a far away land. Villa Castellamonte has
served its purpose for my family and close friends so
now it is time to move on.
Windsong - $3.6 Million ($4,235 /m2)
In 1992, after visiting Mexico, Venezuela, Aruba and
Hawaii, we found a refreshing vibe in Cabarete. We
felt that Dominicans actually liked Americans and the
values we represent, so we thought that the DR
would be a unique place to have a second home.
Contributing factors included the large size of the
country, its climate, natural resources, stable
economic status and trading links to the USA.
After purchasing a home and becoming apart of the
local community, I eventually met my wife on the
beach. Over the past decade, we determined that the
DR remains a great place to live, work and raise our
two small children. We are joined by dozens of other
American, Canadian and European families who
share our commitment to providing our children with a
balanced education in a safe environment. My wife
and I have now lived our dream of designing and
building our dream home and experiencing beach-
front living. We raised our 19 year old son in the DR
and he is off to college. We have two small children
still at home and feel a smaller home would be a
better fit for our family.

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CDR-SIR Page 11
Villa Leeward - $995,000 ($1,653 /m2)
I decided on Cabarete on the north coast of the DR
because it has the best dinghy sailing venue in the
world. It also has great weather year-round, including
summers when the temperature go up five degrees.
This is no issue because of daily cooling breezes. Good
weather also promotes great golf, biking, water sports,
and horseback riding. We love Haciendas el Choco
because of the tennis courts, horse pastures, biking
trails in El Choco National Park, and its privacy and
tranquility. The daily breezes make the area at least
three degrees cooler than the lower coastline.
Sea Horse Ranch - $1.25 M ($2,599 /m2)
In 1994, we saw the DR as a large and fertile island
country with a rich history and vibrant culture which
differentiated it from other Caribbean islands where
the only "industry" was tourism. We knew we would
not be living full time in the DR, so the world class
security in place like Sea Horse Ranch was a real
selling point for us. We were drawn to the incredible
water sports like windsurfing, kiteboarding and laser
sailing. Cabarete actually hosts an Olympic laser
sailing team that practices in these ideal conditions.
The crescent shaped Cabarete Bay is protected by a
reef that acts as a breaker to keep wave sizes down,
but the east-west trade winds always brisk. We
personally have enjoyed some of these sports and our
children and their growing families always love to visit
us for the recreation. So many of the things we do in
the Dominican Republic just can’t be done in our
home in the USA. The reason the we are selling our
Sea Horse Ranch is that a family situation requires us
to live in the US.
Punta Palmera - $1.8 Million ($4,825 /m2)
We started investing in the Dominican Republic in
2006 before the world-wide recession started in 2008.
The reasons we invested, however, have not changed.
The country continues to invest in it’s infrastructure to
encourage foreign investment and facilitate tourism. It
is a young democracy with potential for growth and the
maturity of it’s economy. The DR is also a larger
country than the other Caribbean islands and has
diverse terrain that offers varied experiences and
opportunities for exploration.
We chose Cap Cana because of it modern infra-
structure, beautiful beaches, and full-service marina.
These aspects of our DR investment continue to be
strong and remain the desirable features of this resort.
We also love Punta Espada golf course which many
call the best in the Caribbean. Our particular property,
Punta Palmera, is located in one of the prime
locations in the entire resort. It has some of …
… the best views offered in Cap Cana and is close to
the Marina and its numerous restaurants. We have
our own private island beaches which are protected by
the marina in and out canals. We are selling at this
time because of partners who divorced and are no
longer are interested in the partnership. We would
consider bringing on additional partners because we
believe Cap Cana, and Punta Palmera in particular,
are poised for growth and appreciation.

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CDR-SIR Page 12
Puerto Bahia - $875,000 ($2,500 /m2)
We chose Puerto Bahia as the home for our
catamaran sailboat. The waters of The Bahamas were
too shallow and the winds too lite. The Virgin Islands
were beautiful, but it was too crowded and difficult to
fly back and forth to the USA. Puerto Bahia gave us
the option of ocean sailing, but also the Bay of
Samana which is like a large lake with ocean breezes
and tons of private anchorages. The villa we own there
is in the mountains above the marina and has
spectacular views of the bay, but is just a few steps
from the marina and hotel.
Harmony - $925,000 ($3,517 /m2)
We originally fell in love with the Caribbean because
we were sailors and sailed throughout the Virgin
Islands, Leeward Islands, and the Grenadines. After
spending so much time visiting there, we discovered
something interesting: after about a week or so we
started asking ourselves “is this all there is”? In other
words, a secluded lagoon with white sand, aqua blue
water and lush greenery was great when we first
arrived… but it got old. We soon missed other cultural
activities, community involvement and social life.
Moreover, these outlying islands were difficult to get to
and required extra “puddle jumper” flights to finally get
to our destination. The DR, however, solved all that. In
short, it’s not only a Caribbean island, but also a large
country with non-stop jumbo jet flights, cities,
mountains, world-class golf courses, and cultural
centers -- all in addition to the white sandy beaches,
private lagoons, and various other tropical paradises.
The Dominican Republic was also different because of
its people. It is a very warm and gracious culture and
they sincerely welcome us and make us feel at home.
No matter where you go, you see smiley faces and
laughter. Like anywhere else in the world, the larger
cities may include people with their hands out and a
possible scheme to take advantage of you. However,
this is not the case in the local communities where
people everywhere work hard and tend to their own
families and responsibilities.
Samana Bay - $790,000 ($2,200 /m2)
After the downturn in Spain, I decided to invest in the
Dominican Republic based on advice from my agent.
My first investment was on the Samana Peninsula in
2005 where I bought 4 acres of land (16,000 m2).
After evaluating most of the Samana Peninsula in
detail, I chose this site near Punta Balandra because
of location and whale watching features. I also felt
that the road infrastructure was going to improve and
a new international airport was coming. I bought
another 80,000 m2 in 2006 next to my first purchase.
As a developer, I am selling this villa to get ready to
build the next one.

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CDR-SIR Page 13
Owner Testimonials (cont.) I’m selling now because I am in the process of
expanding my business from Chicago to Arizona and
California. Unfortunately, I don’t have the time to enjoy
this wonderful place anymore. I still feel that the D.R
has a lot to offer; for tourists or anyone who wants to
retire or just spend time to get away and relax. So,
right now is a great time for rental income and the
outlook for the area seems to be strong.
Panorama Village - $890,000 ($1,424 /m2)
I was born in the Dominican Republic and our family
started investing in real estate on the north coast of
the Dominican Republic in 1989. I generally like land.
Land is much cheaper to maintain and has a higher
appreciation than buildings. My passion is also for
construction. I enjoy creating beautiful spaces for
people to enjoy, and in the process, creating some
income for me along the way. Our first investments
have grown through reinvestment in various other
properties. Sometimes, we improve existing houses
and hold them for resale. I have considered ocean
front properties in the past, but I like to have some
control of my surroundings. Therefore, we prefer
developing more up in the hills with panoramic ocean
views. In our opinion, the lower ocean front properties
can be subject to salt air corrosion and also be at risk
of becoming over crowded. At the upper levels, we are
more secluded but with great views of both the ocean
and mountains. Temperatures and breezes can also
be more refreshing. I am now selling this villa because
I am ready to build the next one.
Harmony - $775,000 ($2,947 /m2)
I looked at Florida, the Caymans, Turks & Caicos, and
many other Caribbean islands, but nothing could
compare to what I could get for my dollar in the D.R.
Moreover, I have traveled around a lot of places in the
world and the Dominican Republic has the nicest
people I have ever met. It was also a place I felt safe
and could enjoy time with my family.
Harmony Condominiums are right on the beach in
Cabarete and represent quality of construction not
even matched in the United States. I chose this site
because it is in walking distance to everything. The
crescent shaped bay is great for all water sports and
the reef protecting the bay make it safe and fun.
Casa Sea Dog - $495,000 ($2,134 /m2)
I bought The Sea Dog Inn in 2000. I wanted my home
to be on a small quaint town, away from the crowds
and right on the ocean. I had been all over the island
but Cabrera was the only place I considered buying a
property. The area is very safe and I felt I could enjoy
it with my family and feel secure. There is also a lot to
do in the area such as waterfalls, beaches, golf and
freshwater lakes and springs. I am selling the house
because it is now too big for me. When I purchased it,
I had two partners, but they have since moved on.

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CDR-SIR Page 14
Pelican Beach - $575,000 ($2,246 /m2)
My interest in the Dominican Republic started in 1982
and then in 1985 I acquired an 86,000 square meter
property property in Cabarete. I chose this site
because of its location on the beach and its proximity
to the quaint and attractive village of Cabarete. My
intention was to develop a vacation-ownership resort
similar to the one I had developed in St.Maarten:
Pelican Resort & Casino. The plan of developing this
resort was abandoned, however, due to the changing
world market and difficulty in obtaining financing for
such a large project.
I then sold off the property in parcels, and eventually a
hotel, Harmony and Ocean One Condominiums were
developed. On the last two parcels, I developed
Pelican Beach Condominiums in 2007. I kept one of
the penthouses for private use. In total, the project
contains 16 apartments in one 3-storey building.
I am selling this penthouse because of changing
family considerations. The children are grown and
living elsewhere in the world, and we regrettably do
not use the apartment as much.
Ocean One - $465,000 ($2,193 /m2)
We purchased this property pre-construction and it has
been a great rental property for us. It is second row
from the beach and only seconds to the beach. We like
it because being directly on the beach can be windy at
times. Also, we like second-row because there is less
salt air and corrosion on our appliances and fixtures.
We are selling this property because we already have
multiple properties on the north coast and would like to
diversify and purchase something on the east coast, in
either Casa de Campo or Punta Cana. We love the DR
and its people. The people are part of our great
experiences here.
Bannister - $195,000 ($3,197 /m2)
We purchased this condominium pre-construction,
along with a boat slip in the marina and a mountain
villa above. For years, we kept our 47’ catamaran
sailboat in the marina, but just recently sold the boat.
Therefore, we are selling both the condo and the boat
slip, but keeping the mountain villa.
We are selling because we are in the equestrian
lifestyle now and would like to purchase a 15-acre
ranch nearby. The Dominican Republic is such a
beautiful place for ranches, horses, dressage, trail
riding, cross-country eventing, and polo. We love the
all year-round great riding conditions and hate it when
we see horses to the north buried in snow.

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CDR-SIR Page 15
Recent - “News of Note” Punta Cana’s Airport Receives Top Rating.
Punta Cana’s international airport handles more than 60%
of all tourists traveling to the Dominican Republic by air.
This year, during the January-October period, the airport
terminal handled 63.4% of all arrivals, in comparison to
61.34% registered during 2012. The terminal has
managed to reduce the turn-around time Condor flights to
1.5 hours, instead of the two hours it previously took to
carry out the operation. In comparison with other airports,
the time reduction has meant important savings for the
airline. Other important points taken into consideration by
the airline prior to determining the best international
facilities where it operates: load factor (percentage of
seats occupied), airport’s organization and efficiency, ramp
services that facilitate passenger boarding, unloading of
luggage, cleaning services, fuel supply, water and food,
among others.
New Flights to Puerto Rico from Puerto Plata &
Samana. After Air Turks & Caicos recently unveiled its
new name change to Inter-Caribbean Airways, the
company announced its flights to and from San Juan,
Puerto Rico, effective January 20, 2014. The new air
service schedules connect San Juan with non-stop flights
to Puerto Plata and to Samana in the Dominican Republic
and additional flights from Puerto Plata to Providenciales,
Turks and Caicos Islands. The company said that traveling
from the Dominican Republic is now affordable and
available to business and leisure travelers with the
introduction of these new routes.
DR’s East Region Beltway Now Complete.
The Beltway completes the highway route from Santo
Domingo to Punta Cana, and includes the Eastern
Motorway and the Coral Highway. Public Works minister
Gonzalo Castillo said the artery’s opening gets the country
even closer to receive Medina’s proposed 10 million
tourists per year.
Sosua & Cabarete in Top 10 Retirement List.
Writing for USNews, Kathleen Peddicord includes
Sosua/Cabarete, Dominican Republic in her list of top
10 beach places for retirement around the world.
“Where the verdant green jungle hills slope into the
crystal-blue waters off the north coast of the
Dominican Republic rest the sand-fringed towns of
Sosua and neighboring Cabarete. These are
beachfront utopias. There are no high-rise towers, no
big crowds and no worries. Life here is all about
enjoying what mother nature has created in this
world-class coastal spot,” she writes. She says that
expat communities in the area are established and
expanding and more planned developments are
under way to cater to them. She says the range of
options go from luxury planned communities with
houses selling for US$800,000 to more affordable
options prices in the US$130,000 lows.
Casa de Campo Captures World Travel Awards.
Casa de Campo, the number-one resort in the
Caribbean with the finest golf in the region, had its
international reputation validated at the recent 2013
World Travel Awards.
At the awards’ Caribbean and North American Gala,
Casa de Campo won the top award in 4 categories:
• World’s Leading Golf Resort 2013
• Caribbean’s Leading Golf Resort 2013
• Dominican Republic’s Leading Golf Resort 2013
• Dominican Republic’s Leading Resort 2013
Casa de Campo also was nominated in the category of
Caribbean’s Leading Resort and in the category of
World’s Leading Sports Resort, a title it has won 10
times in the 12 years it has been awarded. Casa de
Campo is known for The Sporting Life as it show cases
world-caliber facilities and instructors from the
equestrian, tennis, shooting and golf worlds.
The World Travel Awards, which for 20 years have
been recognized around the globe as the travel
industry’s highest accolade, celebrate companies,
organizations, and brands that “are pushing the
boundaries of industry excellence in product and
service.”
DR 6th in Tourism and 14th in Trade.
Madrid - Bloom Consulting announces the release of
its Bloom Consulting Country Branding Ranking ©
2013. The top 5 in tourism were the USA, Mexico,
Canada, Argentina, and Brazil. The top 5 in trade was
the USA, Canada, Brazil, Mexico, and Chili. The
Cayman Islands is a new country to appear in the top
10 and the only country representing the Caribbean.
DR Gets 3% Tourism Growth in 2013.
Santo Domingo.- Dominican Republic tourist
arrivals in 2013 posted a 3% growth over 2012,
while 2014 will be an “unprecedented” 5th
consecutive year with even higher regional and
global growth figures than the past two years.
Tourism minister Francisco Javier García said the
already operational cruise terminal at Maimon will
boost Puerto Plata’s development as a tourism
destination, with around 600,000 cruise ship visitors
expected the first year. “This year will be historic for
the country’s tourism, with Puerto Plata province’s
long- awaited opening of Amber Cove, Maimon’s
cruise terminal, this will mean this region’s final
awakening, with the benefit of thousands of jobs
that this terminal will create.”

William Holden, CCIM / Broker - Owner
William F. Holden, CCIM - is the President and Founder of Cabarete Dominican
Republic Sotheby's International Realty. His background is varied and brought him to
where he is today.
For 37 years, William was an airline captain. He started with Trans World Airlines
(TWA) and spent later years as a captain for American Airlines. During those years as
a pilot, he was also a real estate developer in Vail, Colorado, USA (1972 to 1986).
During that time, he developed multi-family condominiums in a ski resort and golf
course setting. In addition, he acted as general contractor, marketing director, sales
manager and property manager for all properties he developed.
From 1986 to 2001, William was an appraiser in St. Louis, Missouri, USA. He
primarily did appraisals and investment analysis on shopping centers, office buildings,
industrial office warehouses, and residential apartment properties.
From 2001 to 2005, William had an asset management company and provided
mortgage financing and investment advising as a registered investment adviser with a
Series 7 securities license. He also specialized in allocating IRA/401k retirement
funds to investment real estate.
www.cabareteDRsothebysrealty.com
Plaza Ocean One, No. 3318
Calle Principal, Cabarete, Puerto Plata
Republica Dominicana
c. 829-962.6644
o. 809.571.0072
usa 314.266.3488
Appendix Below
TAX COMPARISONS
Tax comparisons for the islands
discussed below are set forth
on the pages below.

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CDR-SIR Page A-1
“Taxes of Note”
However, income received in the Bahamas may be subject to the taxes in the
country of origin. There are tax information exchange agreements (TIEAs) between
the Bahamas and other countries. The financial sector advantages are supported by
a strong respect for privacy, flexible exchange controls, geographical location and
continued record of political stability.
Bahamas - offer offshore financial sector freedom from
corporate income, personal income, capital gains, withholding,
estate taxes, and inheritance.
Government Tax Revenue derived from following sources:
• Import and export duties
• Property tax
• Motor vehicles
• Gaming tax
• Tourism tax
• Stamp tax
• Company fees
- B$50 Registration
- B$600 Stamp
- B$1,000 Annual License
• Bank and trust company fees
• Insurance company fees
• Other fees, including business licence fees *
* License Fees are levied on businesses at varying percentage rates or amounts
based on business classification and turnover. Source: Know Your Country
The general IRC rate is 29% for tax or 1% of the company's total assets (after
deducting depreciation) or 1.5% of the gross sales (after deducting discount and
devolution). Companies will pay monthly advance taxes (1/12th) of the equivalent of
the amount paid as taxes from the prior year and, at the end of the year, it should
match the aforementioned 29% or 1% calculated taxes. When the taxes for the
current year are calculated, the monthly payment is compensated in the following
period. If monthly payment was below, then the corporation completes the payment.
Tax payments for current year are based on the previous tax year's liability less any
tax withheld at source. This amount is limited to the higher of the prior year tax (for
those with turnover) paid in 12 instalments or one percent of total assets.
Capital Gains Tax - The gain (or loss) is calculated on difference between the sale of
assets proceeds and cost, which may be adjusted for inflation effects. Gains realized
on disposal of shares by qualified holding companies are not subject to taxation.
However, capital losses with sale of shares, as well as interest on loans to purchase
shares, are not deductible for ISR purposes.
Sales Tax (VAT) - The standard rate is 18% (except for some products sold in
supermarkets where the rate of tax from January 2013 is 8%).
Personal Taxes - Income Tax is payable by individuals on income obtained from
employment, a business, independent profession, investment income, immovable
property, capital gains, pensions, and betting and gambling profits.
Resident and non-resident individuals are subject to income tax on Dominican-
sourced income only as follows: Source: Know Your
Country
Dominican Republic - Resident or branch corporations
subject to Dominican Corporate income tax (ISR) on local income
(only) or income generated by activities within country.
Non-resident companies also pay ISR on income sourced in Dominican territories
where there is an absence of a permanent business. The Resident Corporation in
the Dominican Republic will withhold 29% of the payment for items including
publicity, royalties, interest (10% from overseas banks), etc.
Below 399,923.00 ……...
399,923.01 to 599,884.00
599,884.01 to 773,173.00
Over 833,171.01 ……….
0% (Approximately below US$10,000)
15% amount > RD$ 399,923.01
RD$29,994.00 + 20% on amount > RD$ 599,884.01
RD$76,652.00 + 25% on amount > RD$833,171.01
For Example: RD$833,171 is approximately US$19,837. So, based on an exchange
rate of 42 pesos to the dollar, the personal tax would be US$1,825. And based on the
above, the tax would be 25% on anything earned above approximately US$20,000.
NOTE: a professional attorney or accountant
should be used for tax status or information.

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CDR-SIR Page A-2
“Taxes of Note” (cont.)
Corporations doing business in the Islands are not subject to any form of taxation on
income or gains. The only direct taxes imposed on any person or corporation are
customs excise duties on the importation of goods into the Islands and ad valorum
stamp duties on the consideration passing on the sale of real estate.
In addition to enjoying benefits of being incorporated in a tax neutral jurisdiction, an
International Business Company (IBC/exempt company) is provided with a written
guarantee by the Governor on incorporation, on behalf of the Government of the
Islands, that the IBC will not be liable for a period of 20 years to pay any taxes that
may be imposed in the future.
Value Added Tax - The rate is 11% on all taxable supplies of goods and services. It
is a tax on the supply of most goods and services in the Turks & Caicos islands
(TCI) by VAT registered taxpayers. VAT also applies to most imported goods and
certain imported services. Source: Know Your Country
Turks & Caicos - The Turks and Caicos Islands are a
tax neutral jurisdiction. There are, therefore, no income or
capital gains taxes.
Personal Taxes - Non-resident individuals are only required to pay tax on income
from Puerto Rico sources. The tax rates for non-resident individuals with income
effectively connected with a trade or business in Puerto Rico are the same as those
for resident individuals. The income tax rates for individuals range from 7% on the
excess of $5,000 of net taxable income to 33% on net taxable income in excess of
$60,000. Individuals with adjusted gross income in excess of $150,000 are subject to
an alternative basic tax if the amount of such tax is higher than the individual's regular
tax. Source: Know Your Country
Puerto Rico - Corporations organised or created under the
laws of the Commonwealth of Puerto Rico are subject to tax on
their worldwide income determined on a net profits basis.
Puerto Rico corporations are subject to tax on a graduated tax rate structure:
• a flat tax of 20% on the ‘normal-tax net income’
• a ‘surtax’ on the ‘normal-tax net income’:
- Less surtax credit which is generally $750,000
- 25% on taxable income from $750,001 to $2,500,000
- 30% on taxable income in excess of $250,000,000.
All corporations (with some exceptions) are subject to an alternative minimum tax if
it results in a tax liability greater than the regular tax liability.
Value Added Tax - It is imposed at a rate of 5.5% at the state level and 1.5% at the
municipal level. The sales and use tax generally applies to all retail sales including
mail order, sale of tangible personal property or services, admission fees, storage,
use or consumption in Puerto Rico.
NOTE: a professional attorney or accountant
should be used for tax status or information.
St. Thomas - Although the Virgin Islands is a separate
taxing authority, the US Internal Revenue Code is adopted as
the income tax code of the Virgin Islands.
The effect of this scheme is to create a taxing structure for the US Virgin Islands
"mirroring" the provisions of the US federal tax code. An important factor in Virgin
Islands taxation is whether, on the last day of the tax year, you are a bona fide
resident of the Virgin Islands. If you are a bona fide resident of the Virgin Islands on
the last day of the tax year, you must file your tax return on Form 1040 with the
Government of the Virgin Islands and pay the entire tax due to the Virgin Islands.
You do not have to file with the IRS for any tax year in which you are a bona fide
resident of the Virgin Islands on the last day of the year, provided you report and pay
tax on your income from all sources to the Virgin Islands and identify the source(s) of
the income on the return. Source: Know Your Country
A qualified tax attorney should be consulted for advice on type of ownership, i.e.
individual or through a corporation. Generally speaking, if a corporation is used, a
Dominican corporation should be formed to abide more closely to local and national
laws. It is possible, however, for a foreign corporation to be a shareholder in the
Dominican company. Although there are tax considerations to consider when making
this decision, there are liability factors to be considered as well.
“Personal” or ” Corporate” ?

Caribbean Comparisons Newsletter - 2014

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Caribbean Comparisons Newsletter - 2014