Buying property in the Dominican Republic: step by step

Foreign buyers can own property in the Dominican Republic on the same terms as Dominican citizens. There is no residency requirement, no local partner needed and no limit on how much you can buy. What protects you is not the law on ownership, which is generous, but the checks you make before you pay. This guide walks through the process step by step, the costs to budget for and the mistakes we see most often.

This guide is general information, not legal or tax advice. Rules and rates change. Always confirm the details for your purchase with an independent Dominican lawyer.

Quick answers

• Can foreigners buy? Yes, freehold, in their own name or through a company.
• Do I need residency? No. A valid passport is enough to buy.
• Typical closing costs: approximately 4% to 5% of the price, most of it the 3% transfer tax.
• How long does it take? Signing usually happens within weeks; the new title in your name commonly takes two to four months after closing.
• Is financing available? Some local banks lend to foreigners, usually with larger deposits than at home. Many buyers pay cash or arrange finance in their own country.

Step 1: Decide where and what to buy

The country is large and each area has a very different feel. The north coast around Sosúa, Cabarete and Puerto Plata suits people who want an established expat community and year-round living. The Samaná peninsula, including Las Terrenas, is quieter and more European in character. The east around Punta Cana is driven by tourism and resorts.

Think about how you will use the property. A home you live in full time, a holiday home you rent out and a plot of land for building all need different checks. If you plan to rent, ask early about short-term rental rules in the building or community, and whether there is a management company.

Visit before you commit, ideally in both high and low season. Check the drive to the nearest supermarket, clinic and airport, mobile coverage, water supply and how the power is backed up. You can browse current properties for sale by town, type and price.

Step 2: Hire your own lawyer

This is the single most important decision in the process. Choose an independent Dominican lawyer who works for you, not the seller or the developer. Ask for a written quote; fees are commonly around 1% to 1.5% of the price, sometimes with a minimum. A good lawyer will explain each document in a language you understand and will not release your money until the checks are complete.

If you cannot be in the country for signing, the lawyer can act for you under a power of attorney, which must be notarised and, if signed abroad, apostilled or legalised.

Step 3: Make an offer and sign a promise of sale

Once you agree a price, the parties usually sign a promise of sale (contrato de promesa de venta). It sets the price, the deposit, the deadline for closing and what happens if either side pulls out. A deposit of about 10% is common for resale properties. Ask your lawyer to make the deposit refundable if the legal checks find a problem, and to have it held in escrow rather than paid straight to the seller.

Step 4: Due diligence on the title

Since the Real Estate Registry Law (Law 108-05), property in the Dominican Republic is registered through the Jurisdicción Inmobiliaria. Your lawyer should check, at a minimum:

• Certificate of title (Certificado de Título): that it exists, is in the seller's name and matches the property you are buying.
• Certificate of legal status (Certificación de Estado Jurídico): issued by the Title Registry, showing any mortgages, liens, seizures or disputes recorded against the property.
• Survey (deslinde): that the plot has an individual, approved survey so its boundaries are officially defined. Land without a completed deslinde is a common source of problems.
• Taxes: that the annual property tax (IPI) and any other taxes owed to the DGII, the tax authority, are paid up.
• Condominium and community fees: for apartments and gated communities, a letter confirming the seller owes nothing and a copy of the rules.
• Permits: for new builds, that the developer holds the land title and the construction permits for the project.

Be cautious with land held only under a constancia anotada (a share of a larger parcel without its own survey) or with purchases where the seller cannot produce a clean title. These can sometimes be resolved, but they add time and risk.

Step 5: Sign the final deed and pay

When the checks are clean, buyer and seller sign the final sale contract (contrato de compraventa) before a notary, and the balance is paid. Payment is usually by bank transfer; banks will ask where the funds come from, so keep records of the source of your money ready. Get the keys, the original certificate of title and any condominium documents at the same time.

Step 6: Pay the transfer tax and register the title

After signing, your lawyer pays the transfer tax to the DGII and files the deed with the Title Registry, which issues a new certificate of title in your name. Until that new title is issued, keep copies of every receipt. The process commonly takes two to four months, depending on the registry office.

What it costs

All figures are approximate and should be confirmed for your purchase.

• Transfer tax: 3% of the higher of the sale price or the DGII's own valuation.
• Legal fees: about 1% to 1.5%.
• Notary, registry and stamp costs: usually a few hundred US dollars in total, more for complex files.
• Mortgage registration: extra if you borrow locally.
• Annual property tax (IPI): 1% a year on the value above an exemption threshold that is adjusted for inflation each year. Many modest homes pay little or nothing. Land in urban areas and properties held by companies are treated differently, so ask your lawyer.
• Running costs: condominium fees, insurance, power backup, garden and pool care, and management if you rent.

Tax incentives: CONFOTUR

Projects approved under the tourism incentive law (Law 158-01, known as CONFOTUR) can give buyers an exemption from the 3% transfer tax and from IPI for a set number of years, usually 15 from the project's approval. The benefit belongs to the specific project and the time already used counts against it, so ask for the approval resolution and confirm how many years remain before you rely on it.

Buying off plan

New developments often sell before they are built, with payments staged as construction progresses. Prices can be attractive, but the risks are different. Check the developer's track record, that they own the land with a clean title, that the project has its permits, and how your payments are protected if building stops. A trust structure (fideicomiso) gives better protection than paying the developer directly.

Common mistakes

• Using the seller's or the developer's lawyer instead of your own.
• Paying a deposit before seeing the certificate of title.
• Buying land without a completed deslinde.
• Agreeing to declare a lower price in the deed to save tax. It is illegal, it can backfire when you sell and the DGII may use its own valuation anyway.
• Forgetting to budget for closing costs and the first year of running costs.
• Assuming rental income figures without checking the building's rules and real occupancy.

Frequently asked questions

Does buying property give me residency?

Owning property does not give residency by itself, but property investment can support some residency applications. It is a separate process with its own requirements; ask an immigration lawyer.

Can I buy through a company?

Yes. Some buyers use a Dominican or foreign company for estate planning or rental income. It changes how the property is taxed, so get advice before choosing.

What happens when I sell?

Gains on a sale are generally subject to capital gains tax. Keep every receipt from your purchase and any improvements, as they affect the calculation.

Can I sign without travelling?

Yes, through a notarised and apostilled power of attorney given to your lawyer or a trusted person.

Next steps

Start by searching properties for sale or exploring our location guides. If you would like help finding the right home, tell us what you are looking for on the property finder or contact us.