How to buy land in Dominican Republic (guide)

Authored by the expert who managed and guided the team behind the Dominican Republic Property Pack

Everything you need to know before buying real estate is included in our The Dominican Republic Property Pack

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in the Dominican Republic. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinVestor, we explore the Dominican Republic real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Santo Domingo, Punta Cana, and Santiago. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Gigi Tea 🇩🇴

Realtor, at RealtorDR

Combining her roots and years of experience, Gigi helps clients explore the Dominican Republic's real estate market with confidence. She showcases the country's unique opportunities, making you feel at home while investing in your dream property. We engaged in a conversation with her and used her feedback to fine-tune the blog post, adding details and her personal perspective.

What types of land can foreigners legally buy in the Dominican Republic and what restrictions exist?

Foreigners can purchase virtually all types of land in the Dominican Republic with the same legal rights as Dominican citizens.

The Dominican Constitution protects foreign property ownership without requiring residency status or special permits. You can buy residential land, commercial plots, agricultural properties, and rural areas throughout the country. This constitutional protection ensures your investment is legally secure and transferable.

However, three specific restrictions apply to all buyers, including Dominicans. The first 60 meters from the high tide mark along all coastlines remains public land that cannot be privately owned. Land within 60 kilometers of international borders requires special government approval before purchase. National parks and protected environmental areas are entirely off-limits for private ownership.

These restrictions exist for national security and environmental protection reasons. Most foreign buyers encounter these limitations only when seeking beachfront properties, where they must ensure the land sits beyond the 60-meter public zone.

As of September 2025, this legal framework remains unchanged and provides foreigners with some of the most favorable land ownership rights in the Caribbean region.

Where do foreigners typically buy land in the Dominican Republic and why these locations?

Punta Cana and the broader Bavaro region attract the highest number of foreign land purchases due to premium beachfront access and proximity to the international airport.

Cap Cana specifically draws luxury investors seeking high-end development opportunities with its established resort infrastructure and golf courses. The area offers direct flights from major US and European cities, making it convenient for vacation home owners and rental property investors.

Santo Domingo appeals to foreigners interested in urban investments and commercial development. As the capital city, it provides the strongest rental markets for both residential and commercial properties, plus access to the country's business center.

Las Terrenas on the Samaná Peninsula has become increasingly popular with European and North American buyers seeking laid-back beach communities. The established expat population creates a supportive environment for newcomers, while the natural beauty attracts eco-tourism investments.

Puerto Plata and Cabarete draw foreigners interested in watersports, cruise tourism infrastructure, and established expat communities. These northern coast locations offer lower prices than Punta Cana while maintaining strong tourism economies.

What are the main purposes for which foreigners buy land in the Dominican Republic?

Residential and vacation home development represents the largest category of foreign land purchases in the Dominican Republic.

Retirement properties dominate this segment, with buyers from the US, Canada, and Europe seeking beachfront or mountain locations for permanent relocation. Seasonal vacation homes comprise another major portion, particularly in tourist zones where owners can enjoy personal use while generating rental income during absent periods.

Tourism and investment properties form the second largest category. Foreigners frequently purchase land to develop boutique hotels, vacation rental properties, and Airbnb accommodations in high-traffic tourist areas. These investments benefit from the country's year-round tourism season and growing visitor numbers.

Agricultural ventures attract foreigners interested in organic farming, tropical crop production, and eco-tourism combinations. The favorable climate and relatively low land costs make agricultural investments financially viable, especially for specialty crops and sustainable farming operations.

Commercial development rounds out the main uses, with foreigners establishing shopping centers, restaurants, and service businesses in tourist communities and expat population centers.

Does buying land provide a pathway to Dominican Republic residency or citizenship?

Yes, purchasing land worth at least $200,000 creates a direct pathway to Dominican Republic residency and eventually citizenship.

Investment Level	Residency Timeline	Citizenship Timeline
$200,000+ in real estate	2-6 months processing	After 2 years of residency
$200,000+ in business	2-6 months processing	After 2 years of residency
Mixed real estate/business	2-6 months processing	After 2 years of residency
Government bonds	Not applicable for land buyers	Not applicable for land buyers
Requirements	Clean criminal record, health check	Spanish language proficiency, integration test

The investment residency program requires either residential or commercial real estate purchases totaling $200,000 or more. You do not need to live in the property to qualify - the investment alone suffices for residency status. This residency typically processes within 2-6 months from application submission.

After maintaining residency for two consecutive years, you become eligible to apply for Dominican citizenship. The citizenship process requires demonstrating basic Spanish language skills and knowledge of Dominican culture and history.

It's something we develop in our Dominican Republic property pack.

This pathway offers significant advantages including visa-free travel to numerous countries and the ability to maintain dual citizenship with most nations.

What are current land prices per square meter in popular Dominican Republic areas?

Land prices in the Dominican Republic vary dramatically based on location, with rural areas starting around $10-50 per square meter while prime beachfront locations command $1,200-2,500+ per square meter.

Rural and agricultural land represents the most affordable option, typically ranging from $10-50 per square meter in interior provinces and mountain regions. These areas appeal to buyers seeking large parcels for farming, eco-tourism, or long-term development projects.

Urban residential areas in major cities like Santo Domingo and Santiago average $200-800 per square meter. These prices reflect developed infrastructure including utilities, road access, and proximity to commercial centers and employment opportunities.

Beachfront and premium tourist zone land commands the highest prices, starting around $1,200 per square meter and reaching $2,500+ in elite developments like Cap Cana and exclusive Punta Cana areas. These premium locations offer direct beach access, established resort infrastructure, and proven rental income potential.

As of September 2025, individual property listings show significant variation within these ranges, with some district plots available for as little as $0.02 per square meter while prime tourist zone parcels exceed $54 per square meter based on current exchange rates.

What are the mandatory taxes, fees, and closing costs for land purchases?

Expect to pay approximately 5-6% of the purchase price in total closing costs when buying land in the Dominican Republic.

The transfer tax represents the largest single cost at 3% of the property's appraised value. This government tax applies to all property transfers and is calculated based on the official appraisal, not necessarily the sale price.

Legal fees typically range from 1-1.5% of the purchase price and cover attorney services for contract review, due diligence, and transaction management. These fees are essential as Dominican law requires legal representation for property transactions.

Notary fees and registration costs are often included within legal fees but may be itemized separately. These cover the notarization of contracts and official registration of the title transfer with the General Directorate of Titles Registration.

Additional costs may include property inspection fees, translation services for non-Spanish speakers, and power of attorney preparation if completing the transaction remotely. These supplementary costs typically add another 0.5-1% to the total transaction expense.

Can foreigners buy land with cash and is this the standard payment method?

Cash purchases are both possible and common for foreign land buyers in the Dominican Republic, especially for lower-value properties and rural land.

Many sellers prefer cash transactions because they eliminate financing contingencies and allow faster closings. Cash buyers often negotiate better purchase prices since sellers value the certainty and speed of cash deals.

For larger purchases or premium properties, cash transactions provide significant advantages including no loan approval delays, no mortgage interest costs, and complete ownership from closing day. Many foreign buyers use cash from property sales in their home countries or accumulated investment funds.

However, cash purchases require careful financial planning to ensure sufficient funds remain for closing costs, immediate property improvements, and ongoing expenses. You must also provide clear documentation showing the legal source of funds to comply with anti-money laundering regulations.

While cash is common, financing options exist for buyers who prefer to leverage their investment or preserve capital for other uses. The choice between cash and financing depends on your financial situation and investment strategy.

Are mortgages available for foreigners buying land, and what are typical terms?

Foreign buyers can obtain mortgages for Dominican Republic land purchases, though terms are less favorable than those available to residents.

Dominican banks typically require 25-40% down payments from foreign borrowers, compared to 10-20% for residents. Maximum loan-to-value ratios usually cap at 50-70% of the property value, meaning substantial equity requirements.

Interest rates vary by currency and borrower status. USD-denominated loans currently offer rates between 8-10% annually, while Dominican peso (DOP) loans range from 13-14%. USD loans provide currency stability but may have stricter qualification requirements.

Required documentation for foreign mortgage applicants includes passport copies, tax returns from the last two years, bank statements showing income and assets, employment verification letters, and proof of creditworthiness from your home country. Some banks require additional documentation proving ties to the Dominican Republic.

Loan terms typically extend 10-20 years, though some lenders offer longer terms for qualified borrowers. Pre-approval processes can take 4-8 weeks, so factor this timeline into your purchase schedule.

What documents are required to complete a land purchase and which are recommended?

Several mandatory documents are required to legally complete a land purchase in the Dominican Republic as a foreigner.

1. Valid passport with copies and original presentation2. Proof of legal source of funds including bank statements, employment letters, or business documentation3. Know Your Customer (KYC) form detailing personal assets, income sources, and background information4. Tax returns from the previous two years5. Sales contract and comprehensive due diligence documentation6. Current Title Certificate (Certificado de Título) from the seller

While not legally mandatory, several additional documents significantly improve transaction security and should be considered essential for foreign buyers.

Professional property inspection reports identify potential structural, environmental, or zoning issues before closing. Power of attorney documentation becomes crucial if you cannot attend the closing in person, allowing legal representation for contract signing and registration.

Legal review by a qualified Dominican real estate attorney provides protection against contract issues and ensures compliance with local regulations. Certified translation services help non-Spanish speakers fully understand all contract terms and legal obligations.

It's something we develop in our Dominican Republic property pack.

What is the step-by-step process to legally buy land as a foreigner?

The land purchase process in the Dominican Republic follows a standardized seven-step procedure that typically takes 2-8 weeks to complete.

Step one involves comprehensive legal and financial due diligence. Your attorney verifies the seller's ownership rights, confirms clean title without liens or encumbrances, and investigates any potential legal issues. This due diligence phase typically takes 1-2 weeks.

Step two requires signing a Promise of Sale contract (Promesa de Venta) that outlines purchase terms, deposit amount, and closing timeline. This initial agreement is notarized and legally binding on both parties.

Step three involves executing the final sales contract and transferring payment. Both buyer and seller sign the definitive contract before a notary public, and the full purchase price is transferred according to the agreed terms.

Step four covers registration with the General Directorate of Titles Registration. All contract documents and supporting paperwork are submitted to the government registry for official recording.

Step five results in issuance of the new Title Certificate in the buyer's name. This document serves as legal proof of ownership and typically arrives 2-4 weeks after registration submission.

Step six requires payment of all applicable taxes and fees including the 3% transfer tax, legal fees, and registration costs.

Step seven grants legal possession once the title registration is complete and all payments are confirmed.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Dominican Republic versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Can the land purchase process be completed without visiting the Dominican Republic?

Yes, foreign buyers can complete the entire land purchase process remotely through power of attorney arrangements without physically visiting the Dominican Republic.

Many foreigners successfully purchase Dominican land while remaining in their home countries by granting power of attorney to qualified local attorneys. This legal document authorizes your representative to sign contracts, transfer funds, and complete registration procedures on your behalf.

Remote purchases require selecting a reputable Dominican attorney with real estate experience and providing detailed instructions for all transaction decisions. Your attorney handles due diligence, contract negotiations, closing procedures, and title registration while keeping you informed throughout the process.

However, remote purchases carry additional risks including limited personal inspection opportunities and reduced control over transaction timing. Many buyers choose to visit at least once during the due diligence phase to personally inspect the property and meet key parties.

Technology enables virtual property tours, video calls with attorneys and sellers, and electronic document review to partially mitigate remote purchase limitations. Despite these capabilities, professional local representation becomes absolutely critical for secure remote transactions.

What are common mistakes foreigners make when buying land and how to avoid them?

Inadequate due diligence represents the most costly mistake foreign land buyers make in the Dominican Republic.

Many buyers skip comprehensive title searches and fail to verify clear ownership, leading to discoveries of outstanding liens, boundary disputes, or invalid seller claims after purchase. Avoid this by hiring qualified Dominican attorneys to conduct thorough title investigations and property history reviews before signing any agreements.

Underestimating total costs causes budget problems when buyers only consider the purchase price without accounting for closing costs, taxes, and ongoing expenses. Request detailed cost breakdowns from your attorney including all fees, taxes, maintenance costs, and potential improvement expenses before committing to purchase.

Skipping professional property inspections can result in expensive surprises after closing including structural problems, utility issues, or zoning violations. Always hire qualified inspectors to evaluate land conditions, environmental factors, and development potential before finalizing purchases.

Relying on informal agreements or verbal promises provides no legal protection under Dominican law. Only notarized contracts and formal title registration protect your ownership rights - never rely on handshake deals or preliminary agreements.

Ignoring tax compliance and regulatory requirements can void transactions or result in significant fines. Ensure your attorney verifies all tax payments are current and all zoning and development regulations are properly followed throughout the purchase process.

It's something we develop in our Dominican Republic property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. TheLatinvestor - Buy Land Dominican Republic Guide
2. Veles Club - Dominican Republic Property Investment
3. Dominican Today - Foreigners Property Ownership
4. TheLatinvestor - Dominican Real Estate for Foreigners
5. Hidden Gem Estates - Property Buying Guide 2025
6. Lincoln Global Partners - Citizenship by Investment
7. Golden Visas - Dominican Republic Program
8. Noriega Group - Residency Through Real Estate
9. DR Properties - Mortgage Financing Options
10. Inmobiliaria Salomon - Common Buying Mistakes