How to Buy Property in the Dominican Republic as a Foreigner: A Practical Guide

In the Dominican Republic, buying real estate as a foreigner is remarkably straightforward — if you know how the process actually works.
There are no citizenship requirements, no special permits needed, and full property rights are guaranteed by law. Yet, navigating the system efficiently still requires understanding the landscape behind the brochures. Here’s what you should know before you sign anything.

⸻

1. Yes, Foreigners Can Own Property — Fully and Freely

Unlike in some countries where ownership is restricted or complicated, in the Dominican Republic, foreign buyers enjoy exactly the same property rights as locals.
Title deeds are issued in your personal name or through a Dominican company, depending on your strategy.

Important to know:

• Ownership is absolute; you are not leasing from the state.
• Titles are registered at the National Title Registry.
• Your investment is protected under Dominican law.

⸻

2. Work with a Lawyer — Not Just an Agent

In Punta Cana, many transactions move fast, but that doesn’t mean due diligence should be rushed.
A real estate lawyer is essential — not optional — to:

• Verify that the property has a clean, registered title (no liens or encumbrances).
• Draft or review the Promise of Sale contract.
• Guide you through tax implications and optional incentives like CONFOTUR.

Tip: Choose a lawyer who specializes in real estate and speaks your language fluently.

⸻

3. Understand the Buying Structure: Personal vs Company

You can purchase in your own name or through a Dominican SRL (company).
The choice often depends on your goals:

• Personal ownership: Simpler if buying for personal use.
• Company ownership: Beneficial for rental income, multiple properties, or resale tax advantages.

Discuss both options with your lawyer before committing.

⸻

4. Key Steps in the Purchase Process

The general flow of a real estate transaction looks like this:

• Reservation Agreement: You reserve the property with a deposit (often US$5,000–US$10,000).
• Promise of Sale (Contrato de Promesa de Venta): A formal contract detailing payment terms, due diligence period, and closing date.
• Due Diligence: Title search, tax verification, and property inspection.
• Final Contract (Contrato de Venta Definitiva): The definitive sale agreement.
• Title Transfer: Once full payment is made, the title is transferred into your name at the Registry.

⸻

5. Costs Beyond the Purchase Price

Budget for approximately 3%–4% additional closing costs, including:

• Transfer tax (currently 3% of the property’s registered value, unless covered by CONFOTUR exemption).
• Legal fees (typically 1%–1.5% of the property price).
• Title registration fees.

There are no hidden “foreigner-only” taxes — the system is remarkably transparent.

⸻

6. The CONFOTUR Advantage

Some new projects (especially in Punta Cana, Cap Cana, and Bávaro) qualify under CONFOTUR, a government program offering:

• 15 years of property tax exemption (IPI).
• Transfer tax exemption at the time of purchase.

Not every property qualifies, so it’s crucial to ask early in the process. When applicable, CONFOTUR can translate into significant long-term savings.

⸻

7. Financing: What You Should Know

Local banks do offer mortgages to foreigners, but expect:

• 20–30% minimum down payment.
• Slightly higher interest rates than local buyers.
• More documentation (bank references, income proof, etc.)

Reality check: Most foreign investors prefer cash transactions to simplify the process and negotiation leverage.

⸻

Final Thought: Navigate with Precision, Not Assumptions

Buying real estate abroad isn’t about simply copying what worked at home.
It’s about understanding the local dynamics, asking the right questions, and partnering with advisors who prioritize transparency over speed.
In the Dominican Republic, the opportunity is real — but the smartest investments are always made with clarity, not just enthusiasm.

At Latitude Lux, we specialize in turning opportunity into lasting value.
If you’re ready to explore Punta Cana with professionals who move beyond the obvious, we are ready to guide you — with precision, expertise, and insight.