Frequently Asked Questions (FAQs)
Discover everything you need to know about buying property in Punta Cana. From the step-by-step process to legal details, taxes, and financing options, we’re here to guide you every step of the way so you can find not just a property, but a place to call home.
Can foreigners buy property in the Dominican Republic?
Yes! The Dominican Republic has no restrictions on foreign ownership. You can buy real estate in your name or through a corporation.
What are the steps to buying a property?
The process varies slightly between pre-construction and resale properties.
For Pre-Construction (New Developments)
- Choose the Right Property – Work with a trusted real estate expert (like Latitude Lux) to find your ideal investment.
- Sign a Reservation Agreement & Pay a Deposit – This is usually between $5,000–$10,000 to secure the unit.
- Due Diligence & Promise of Sale – Your lawyer verifies the legal status of the project and contract terms. A down payment (typically 20–50%) is made.
- Payment Plan During Construction – The remaining balance is paid in installments according to the developer’s timeline.
- Final Payment & Title Transfer – Upon project completion, the final balance is paid and the title is officially transferred to your name.
For Resale (Existing Properties)
- Make an Offer & Sign a Sales Agreement – Once you agree on a price with the seller, a deposit (usually 10% of the purchase price) is made to secure the property.
- Due Diligence & Title Verification – Your lawyer ensures the property has a clear title and no outstanding debts.
- Sign the Purchase Agreement & Make Full Payment – This is done before a notary, and funds are transferred.
- Title Transfer & Registration – The property is officially registered in your name at the Land Registry. This can take 30 to 60 days.
Do I need a lawyer?
Yes, we highly recommend hiring a local lawyer to review and verify all paperwork, ensuring a smooth and secure transaction.
Legal fees typically range between 1%–2% of the property’s value. Latitude Lux works with experienced legal professionals to assist you throughout the process.
What are the closing costs?
Closing costs are around 3–5% of the property’s price and include:
- Legal fees (1%–2% of purchase price)
- Title transfer tax (3% of property value)
- Notary & administrative fees
How long does the buying process take?
- Resale properties: Typically 30–60 days
- Pre-construction: Follows the developer’s timeline
Is financing available for foreign buyers?
Yes, though financing options may differ from your home country. Some Dominican banks offer mortgages to foreigners, and select developers offer direct payment plans or financing.
While financing is an option, paying cash speeds up the process, strengthens your negotiation power and avoids extra financing costs.
At Latitude Lux, we provide financing solutions for international buyers through select partners. Contact us to explore your options.
Are there property taxes?
Yes, properties valued over RD$9,500,000 (approx. $172,239 USD) are subject to an annual 1% tax on the excess value.
What is the CONFOTUR Law and how can I benefit?
The CONFOTUR Law (Tourism Incentive Law 158-01) offers full tax exemptions for certain properties in approved tourism zones. If you buy a property under this program, you pay no property tax (1%) and no title transfer tax (3%) for up to 15 years.
Latitude Lux specializes in identifying properties that qualify for CONFOTUR benefits. Contact us to learn more about tax-free investment opportunities.
Can I buy directly from the developer of a project?
Yes, you can. However, developers are focused on selling their own projects. At Latitude Lux, we work with multiple trusted developers, allowing us to offer objective recommendations based on your specific needs.
The price is always the same—you don’t pay extra to work with us, as we’re compensated by the developers. What you gain is expert guidance and a broader view of the best options available.
Can I earn rental income from my property?
Absolutely. Many buyers generate short- or long-term rental income, especially in high-demand areas like Punta Cana. We can advise on properties and areas with strong ROI potential and connect you with reputable property managers.
Why invest in Dominican real estate?
- No restrictions on foreign buyers
- High rental demand & strong ROI
- Thriving tourism industry
- Stable economy & growing property market
- Potential tax exemptions through CONFOTUR
Have more questions?
Let’s connect.
Our team is here to offer honest answers, strategic guidance, and personalized support.