Can foreigners buy property in Dominican Republic?

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 Puerto Plata. 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.

Can foreigners legally buy property in the Dominican Republic?

Yes, foreigners can legally buy and own property in the Dominican Republic with complete ownership rights.

The Dominican Republic's constitution and property laws provide full ownership rights to foreign nationals without any restrictions or special requirements compared to Dominican citizens. This includes the right to buy, sell, rent, and transfer property freely.

Foreign companies can also purchase property, but they must establish a local branch or register a Dominican domicile to complete transactions in their corporate name. Individual foreign buyers face no such requirements and can purchase property using just their passport and a Dominican tax number.

As of September 2025, the Dominican Republic remains one of the most accessible Caribbean countries for foreign property investment, with transparent laws that protect international buyers' rights.

Are there any restrictions compared to locals or other nationalities?

Foreign investors have exactly the same property ownership rights as Dominican citizens with no restrictions whatsoever.

Unlike many countries that limit foreign ownership to leasehold arrangements or require local partnerships, the Dominican Republic grants full freehold ownership to foreigners. You can own land, condominiums, houses, and commercial properties with the same legal protections as locals.

There are no nationality-based preferences or restrictions - whether you're American, Canadian, European, or from any other country, the ownership rights remain identical. Foreign companies face the additional requirement of establishing a local presence, but individual buyers encounter no such barriers.

This unrestricted approach has made the Dominican Republic a preferred destination for international real estate investment in the Caribbean region.

Do I need residency, a visa, or special permits to purchase real estate?

No residency, visa, or special permits are required to purchase real estate in the Dominican Republic.

You can buy property while visiting on a tourist visa, which most nationalities can obtain upon arrival. Many foreign buyers complete their purchases during short vacation trips without any immigration complications.

However, it's important to understand that property ownership does not automatically grant residency rights. If you wish to live in the Dominican Republic long-term, you must apply for residency through separate immigration procedures. Owning property valued over $200,000 can help expedite certain residency applications, but ownership itself doesn't guarantee residency status.

This separation between property ownership and immigration status allows for flexible investment without complex visa requirements.

Is it necessary to be physically present in the country to complete the purchase?

Physical presence is not strictly necessary to complete a property purchase in the Dominican Republic.

You can execute the entire transaction remotely by granting a Power of Attorney to a Dominican lawyer or trusted representative. This legal document allows your representative to sign contracts, transfer funds, and complete registration procedures on your behalf.

However, visiting the property in person is highly recommended for due diligence purposes. A site visit allows you to inspect the property condition, verify neighborhood characteristics, and meet with your lawyer and real estate professionals face-to-face.

Many successful buyers combine a vacation with property hunting, using tourist visits to identify opportunities and complete purchases efficiently.

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

What is the step-by-step process to buy property, and which documents are required?

The Dominican Republic property purchase process follows eight distinct steps with specific documentation requirements.

Step	Action Required	Key Documents
1. Property Selection	Find property through agent, developer, or independently	Property listings, preliminary information
2. Promise of Sale	Sign offer to purchase with price and terms	Promise of Sale agreement
3. Deposit Payment	Pay deposit, typically 10% of purchase price	Deposit receipt, bank transfer proof
4. Due Diligence	Lawyer conducts title search and verification	Title deed, property survey, lien search
5. RNC Registration	Obtain Dominican tax number	Valid passport, RNC certificate
6. Final Contract	Sign purchase contract at Notary Public	Purchase contract, all prior documents
7. Balance Payment	Pay remaining balance per contract schedule	Payment proof, fund transfer documentation
8. Title Transfer	Property Registry records new owner	New title certificate in buyer's name

Do I need to hire a lawyer, and what exactly would their role be?

Hiring a Dominican lawyer is highly recommended and considered essential for foreign property buyers.

The Dominican Republic does not have a title insurance system like the United States, making legal representation critical for protecting your investment. A qualified lawyer serves multiple crucial functions throughout the purchase process.

Your lawyer will verify clear title ownership and ensure no liens, encumbrances, or legal disputes affect the property. They draft and review all contracts to protect your interests, handle Tax Authority registration for your RNC number, and oversee the complete transfer and registration process at the Title Registry.

Additionally, lawyers coordinate fund transfers, manage closing procedures, and ensure all legal requirements are met. Legal fees typically range from 1-1.5% of the purchase price, sometimes higher for complex transactions.

Given the legal complexities and potential risks, attempting to purchase property without qualified legal representation could result in significant financial losses.

What taxes, fees, and ongoing costs should I expect when buying and later reselling?

Property transactions in the Dominican Republic involve several taxes and fees that buyers must budget for purchase and resale.

1. **Transfer Tax**: 3% of the purchase price paid by the buyer2. **Legal Fees**: 1-1.5% of purchase price for lawyer representation 3. **Notary and Registration**: 1-2% for notarization and title registration4. **Broker's Fee**: 5-10% if using a real estate agent5. **Annual Property Tax**: 1% of appraised value paid in two installments6. **Capital Gains Tax**: 27% on gains when selling (some exemptions may apply)7. **Ongoing Costs**: Property maintenance, HOA fees, and insurance

These costs can add approximately 6-8% to your purchase price in immediate fees, plus ongoing annual property taxes. When reselling, the 27% capital gains tax represents a significant consideration for investment planning.

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

Can foreigners access mortgages, what are the typical rates and conditions, and what are the tips to secure one?

Foreigners can access mortgages in the Dominican Republic, but with more restrictive conditions than locals face.

Most Dominican banks offer foreign buyers loan-to-value ratios of 50-70%, requiring minimum down payments of 25-40%. Interest rates for USD-denominated loans typically range from 8-10% annually, higher than many international markets.

Banks require extensive documentation including proof of income, employment verification, bank statements, and compliance with Know Your Customer regulations. Anti-money laundering checks are standard, and the approval process can take several weeks to months.

To improve your chances of mortgage approval, work with a real estate agent experienced in foreign lending, prepare all financial documents with certified translations, maintain strong credit history, and consider establishing a relationship with a Dominican bank before applying.

Many foreign buyers opt for cash purchases to avoid lending complications and lengthy approval processes, especially for investment properties.

Where do foreigners typically choose to settle in the Dominican Republic?

Foreign buyers concentrate in specific regions that offer lifestyle amenities, rental potential, and established expat communities.

1. **Punta Cana and Arena Gorda**: Resort areas with high tourism and rental demand2. **Santo Domingo**: Capital city offering urban amenities and business opportunities 3. **Puerto Plata**: Coastal location popular with retirees, more affordable options4. **Samaná Peninsula**: Eco-tourism destination with luxury developments5. **La Romana and Casa de Campo**: High-end gated communities and golf resorts6. **Cabarete**: Vibrant beach town popular with water sports enthusiasts7. **Las Terrenas**: European expat community with boutique developments

Each area offers distinct advantages depending on your priorities - whether seeking rental income, permanent residence, or vacation home use. Coastal areas generally command higher prices but offer stronger rental yields for investors.

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.

Which areas currently offer the best mix of livability, rental demand, tourism growth, and capital appreciation?

Punta Cana leads for investment potential with rental yields reaching up to 10% annually and consistent tourism growth.

The area benefits from ongoing infrastructure development, international airport access, and established vacation rental markets. New resort developments and improved transportation links continue driving capital appreciation.

Las Terrenas and the broader Samaná Peninsula offer strong potential for eco-tourism growth and lifestyle appeal. The region attracts European buyers seeking natural beauty and authentic Dominican culture, supporting both rental demand and long-term appreciation.

Santo Domingo provides urban stability with diverse rental markets serving both locals and business travelers. The capital's economic growth supports steady property appreciation, though rental yields may be lower than resort areas.

Puerto Plata represents value opportunity with affordable entry points and improving tourism infrastructure. The area's development potential makes it attractive for long-term capital growth, especially near new resort and infrastructure projects.

What are the average property prices across different cities and regions?

Property prices in the Dominican Republic vary significantly by location and property type as of September 2025.

Beachfront condominiums in prime areas like Punta Cana and Cabarete typically range from $2,000-$2,500 per square meter, representing the premium end of the market. These properties offer the highest rental potential but require substantial investment.

Las Terrenas and Samaná Peninsula offer more affordable options, with small condominiums starting under $100,000, though premium new developments command significantly higher prices. The area appeals to buyers seeking value and natural beauty.

Santo Domingo prices vary widely by neighborhood, generally offering lower per-square-meter costs than beachfront areas while providing urban amenities and infrastructure. Puerto Plata remains one of the most affordable coastal options for foreign buyers.

Luxury developments and gated communities like Casa de Campo command premium prices well above average market rates, targeting high-net-worth international buyers.

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

What are the common mistakes and pitfalls foreigners face when buying property there?

Foreign buyers frequently encounter avoidable mistakes that can result in significant financial losses or legal complications.

1. **Skipping lawyer representation**: Risk of unclear ownership, hidden liens, or incomplete property records2. **Inadequate due diligence**: Failing to verify title, zoning restrictions, and encumbrances 3. **Overpaying for properties**: Not benchmarking local market prices or negotiating effectively4. **Underestimating ongoing costs**: Ignoring annual taxes, maintenance, and HOA fees5. **Poor construction quality assessment**: Not verifying building standards and regulatory compliance6. **Relying on verbal agreements**: Accepting promises not documented in written contracts7. **Ignoring rental regulations**: Not understanding local landlord-tenant laws for investment properties

The most critical mistake is attempting to navigate the purchase process without qualified legal representation. The Dominican Republic's legal system differs significantly from other countries, and title issues can be complex to resolve after purchase.

Successful foreign buyers invest time in market research, hire experienced local professionals, and verify all claims through independent sources before committing to purchases.

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. Mondaq - Real Estate 2025
2. Overseas Dream Home - Dominican Republic Real Estate Guide
3. The LatinVestor - Dominican Real Estate for Foreigners
4. Judicare Group - Buying Property in Dominican Republic
5. Veles Club - Dominican Republic Property Guide
6. Multilaw - Real Estate Guide Dominican Republic
7. Buy in Casa Linda - Property Buying Guide
8. Ecovis Global - Real Estate Lawyer Dominican Republic