Buying property in the Dominican Republic as a foreigner: full 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 TheLatinvestor, we explore the Dominican 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 Las Terrenas. 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 buy property in the Dominican Republic the same way locals do, or are there restrictions?

Foreigners have identical property ownership rights as Dominican citizens, with no restrictions whatsoever.

The Dominican Republic Constitution grants equal property rights to all foreign nationals, allowing them to buy and own land, condos, houses, and commercial properties with full legal title. Unlike many Caribbean nations that restrict foreign land ownership or require special permits, the Dominican Republic welcomes international buyers without discrimination based on nationality.

All foreigners are treated equally under Dominican property law, meaning Americans, Canadians, Europeans, and other nationalities face the same straightforward process and requirements. There are no special quotas, restricted zones, or nationality-based limitations that would prevent or complicate your purchase.

The only universal requirement is following the standard legal procedure, which includes proper documentation, hiring a lawyer for due diligence, and paying the required taxes and fees. This open policy has made the Dominican Republic one of the most accessible real estate markets in the Caribbean for international investors and residents.

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

Do foreigners from certain countries face different rules compared to others?

No, all foreign nationals are subject to the same property laws and procedures regardless of their country of origin.

Dominican property legislation does not differentiate between nationalities when it comes to real estate transactions. Whether you're from the United States, Canada, the United Kingdom, Germany, France, or any other country, you'll follow the identical process and meet the same requirements.

The documentation needed, tax obligations, legal procedures, and ownership rights remain consistent for all foreigners. There are no preferential treatments for citizens of specific countries, nor are there additional restrictions imposed on particular nationalities.

This uniform approach simplifies the market for international buyers and ensures predictable, transparent transactions. The only variations you might encounter relate to your home country's requirements for currency exchange reporting or tax obligations, but these are external to Dominican law and don't affect your ability to purchase property.

Do you need residency or a specific visa to buy property, or can you buy as a tourist?

You can buy property as a tourist without any residency or special visa requirements.

Tourist status is completely sufficient for purchasing real estate in the Dominican Republic. You only need a valid passport and the standard tourist entry card that all visitors receive upon arrival. There's no requirement to obtain residency, work permits, or investment visas before or after your property purchase.

Many foreign buyers complete their entire property acquisition while visiting on a tourist visa, which typically allows stays of 30 days (extendable). This flexibility means you can view properties, negotiate deals, and finalize purchases during a vacation or business trip.

After purchasing property, you're not obligated to apply for residency, though property ownership can support residency applications if you choose to pursue them later. The property remains fully yours regardless of your visa status, and you can rent it out or sell it without any residency-related complications.

Is it necessary to be physically present in the Dominican Republic during the purchase process?

Physical presence is not required, as you can complete the entire purchase through a power of attorney granted to a local lawyer.

Most foreign buyers successfully complete property transactions without being present for the final signing and registration procedures. The power of attorney system allows your Dominican lawyer to act on your behalf for all legal requirements, including signing contracts, transferring funds, and registering the title deed.

However, it's highly recommended to visit the property at least once before purchase to conduct a personal inspection and meet with your legal team. Many buyers prefer to handle the initial steps in person - viewing properties, meeting agents, and selecting a lawyer - then grant power of attorney for the final closing procedures.

The power of attorney must be properly notarized and may require apostille certification if signed outside the Dominican Republic. Your lawyer will guide you through the specific requirements based on where you're located and ensure all documentation meets Dominican legal standards.

What is the step-by-step process for buying property, and which documents are required?

The Dominican property purchase process follows eight clear steps, typically taking 30-60 days from offer to completed title registration.

Step	Action Required	Timeline
1. Property Selection	Work with agent, view properties, make written offer	1-2 weeks
2. Promise of Sale	Sign preliminary contract with 10% deposit	1-3 days
3. Due Diligence	Lawyer verifies title, checks liens, debts, permits	2-3 weeks
4. Tax Number	Obtain Dominican RNC tax identification	3-5 days
5. Final Contract	Sign deed of sale before notary, pay balance	1 day
6. Tax Payment	Pay 3% transfer tax and legal fees	1-2 days
7. Registration	Submit documents to Title Registry office	1-2 weeks
8. Title Receipt	Receive new Certificate of Title in your name	Final day

Required documents include your passport as primary identification, Dominican tax number (RNC) obtained through your lawyer, and proof of funds such as bank statements for anti-money laundering compliance. The seller provides title documents, certificate of no debt, property survey, and urban planning certificates.All foreign documents must be translated to Spanish and properly notarized. Documents signed outside the Dominican Republic typically require apostille certification at a Dominican consulate in your home country.

Is hiring a lawyer mandatory, and what role do they play in the transaction?

While not legally mandatory, hiring a lawyer is essential and universally recommended for all foreign property buyers.

Dominican real estate law is complex and legalistic, making professional legal representation crucial for protecting your interests. Lawyers conduct comprehensive due diligence by verifying the seller's ownership, checking for outstanding debts, liens, or legal disputes, and ensuring all permits and urban planning compliance are in order.

Your lawyer drafts and reviews all contracts, represents you before notaries and government offices, and manages the entire title transfer process. They also handle tax calculations, ensure proper payment of all fees, and coordinate with the Title Registry for final registration.

If you're not physically present, your lawyer acts as your legal representative through power of attorney, signing documents and completing transactions on your behalf. They also provide crucial protection against common pitfalls like purchasing properties with hidden debts or unclear titles.

Legal fees typically range from 1-1.5% of the purchase price, which is a small investment considering the protection and expertise provided throughout this significant financial transaction.

What are the typical taxes, fees, and costs involved in both buying and reselling property?

Property transactions in the Dominican Republic involve several taxes and fees that buyers should budget for beyond the purchase price.

When buying property, you'll pay a 3% transfer tax calculated on the government-appraised value, which may be lower than your actual purchase price. Legal fees range from 1-1.5% of the purchase price and cover all attorney services, notary fees, and registry costs. Additional costs include property inspections, surveys if needed, and translation services for foreign documents.

Annual ownership costs include property tax (IPI) of 1% on the cumulative value of all your Dominican properties above RD$10,190,833 (approximately $166,000-$172,000 USD). Properties below this threshold are exempt from annual property tax. Municipal taxes are minimal and vary by location.

When selling property, expect capital gains tax of 27% on net profit, though exemptions exist for long-term ownership. Real estate agent commissions typically run 5% for resales. If you rent out your property, rental income is taxed at 27% on net earnings after deducting allowable expenses like management, maintenance, and insurance.

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

Are mortgages available to foreigners, what are the typical rates and conditions, and what tips help secure one?

Mortgages are available to foreigners through local and international banks, though with stricter requirements than those offered to residents.

Major banks like Scotiabank, Banco Popular, and international institutions offer both USD and Dominican peso (DOP) loans to foreign buyers. USD loans typically carry interest rates of 8.25-10%, while peso loans range from 12-14%. Loan terms extend up to 25 years, though most foreigners receive shorter terms.

Foreign buyers typically need to provide larger down payments of 25-40%, compared to 10-20% for locals. Required documentation includes two years of tax returns, six months of bank statements, employment letters, proof of income, credit reports from your home country, and your passport.

To improve approval chances, maintain strong financial credentials with stable income documentation, consider larger down payments to reduce lender risk, and work with banks that have experience serving foreign clients. Many buyers choose to purchase with cash due to high interest rates and strict requirements, then potentially refinance later if rates improve.

Pre-approval processes can take 2-4 weeks, so start early if financing is part of your strategy.

What are the fiscal implications for foreigners, including property taxes and income tax on rental earnings?

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.

Foreign property owners face three main tax obligations in the Dominican Republic: annual property tax, rental income tax, and capital gains tax upon sale.

Annual property tax (IPI) applies at 1% on the cumulative assessed value of all your Dominican properties exceeding RD$10,190,833 (approximately $166,000-$172,000 USD as of September 2025). Properties valued below this threshold are completely exempt from annual property tax, making smaller investments particularly tax-efficient.

Rental income is subject to 27% tax on net earnings after deducting legitimate expenses including property management fees, maintenance costs, insurance, utilities, and depreciation. You must declare all rental income annually, whether from long-term tenants or short-term vacation rentals. Residential rentals are exempt from the 18% VAT that applies to commercial rentals.

Capital gains tax of 27% applies to net profit when you sell property, calculated on the difference between your adjusted purchase price and sale price. Some exemptions exist for long-term ownership, and you can deduct improvement costs from your taxable gain.

Properties in designated tourism zones under CONFOTUR law may qualify for special tax exemptions and incentives, particularly new developments in resort areas.

Which areas are most popular with foreigners, and where are the best opportunities for living, renting out, or long-term appreciation?

Five primary areas dominate foreign investment in the Dominican Republic, each offering distinct advantages for different investment strategies.

1. **Punta Cana & Bávaro**: The premium destination for luxury resorts and vacation rentals, offering the strongest tourist rental market with high occupancy rates year-round. Property prices average €2,695 per square meter, making it expensive but with proven rental demand.2. **Las Terrenas**: A European expat hub with village charm and excellent beaches, averaging €1,694 per square meter. This area offers strong rental demand from both tourists and long-term expat residents.3. **Sosúa & Cabarete**: North coast communities popular with North American and European expats, offering affordable living and established expat infrastructure. Cabarete averages €1,179 per square meter, while Sosúa averages €1,247 per square meter.4. **Santo Domingo**: The capital provides urban lifestyle opportunities with the highest rental yields at 7.5-8.4%. Property prices average €1,368 per square meter, offering good value for investors seeking steady rental income from local professionals.5. **La Romana/Casa de Campo**: An exclusive gated community featuring high-end resorts and golf courses, attracting affluent international buyers seeking luxury lifestyle properties.

For rental income, Santo Domingo and Punta Cana offer the most consistent returns. For lifestyle and value appreciation, Las Terrenas and the north coast communities provide excellent opportunities at more accessible price points.

What is the latest data on property prices per city or region, liveability indexes, gross rental yields, rental income trends, tourism numbers, and growth forecasts?

As of September 2025, the Dominican real estate market shows strong fundamentals supported by robust tourism growth and increasing foreign investment.

Location	Price per m²	Rental Yield
Punta Cana	€2,695	6.8-7.1%
Las Terrenas	€1,694	7.0-7.3%
Santo Domingo	€1,368	7.5-8.4%
Sosúa	€1,247	6.5-7.0%
Cabarete	€1,179	6.8-7.2%
Puerto Plata	€1,111	7.0-7.5%
National Average	€1,520	7.1%

Tourism reached over 11 million visitors in 2024, with projections of 12 million for 2025, driving strong demand for vacation rentals. The government's infrastructure investments in new airports and highway improvements continue supporting property value growth in previously underdeveloped areas.Rental income trends show consistent demand for both long-term urban rentals in Santo Domingo and short-term vacation rentals in coastal resort towns. The growing expat community and increasing remote work trends support steady rental markets across all major foreign-popular areas.Property prices have shown steady appreciation of 3-5% annually in most markets, with premium locations like Punta Cana experiencing higher growth rates due to limited land availability and continued resort development.

What are the most common mistakes and pitfalls foreigners face when buying property in the Dominican Republic?

Foreign buyers typically encounter six major pitfalls that can lead to financial losses or legal complications in Dominican real estate transactions.

1. **Inadequate due diligence**: Failing to thoroughly verify property titles, existing debts, or liens can result in purchasing properties with legal complications. Always ensure your lawyer conducts comprehensive title searches and debt certificate verification.2. **Underestimating total costs**: Many buyers focus only on the purchase price and overlook transfer taxes (3%), legal fees (1-1.5%), ongoing property taxes, maintenance fees, and insurance costs that can add significantly to the investment.3. **Skipping professional inspections**: Purchasing without proper structural inspections, land surveys, or urban planning compliance checks can reveal costly problems after closing that become the new owner's responsibility.4. **Misunderstanding Dominican legal procedures**: Assuming your home country's real estate practices apply in the Dominican Republic leads to confusion and potential errors. Always work with experienced local legal professionals who understand Dominican property law.5. **Relying on verbal agreements**: All commitments, promises, and contract terms must be documented in writing and properly notarized. Verbal assurances from sellers or agents have no legal weight in Dominican courts.6. **Overpaying in oversupplied markets**: Focusing solely on popular tourist areas without researching local market conditions can lead to overpaying in areas with too much inventory, limiting both rental potential and capital appreciation.

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. Simply Dominican - Requirements for Foreign Buyers
2. Mondaq - Real Estate 2025
3. Overseas Dream Home - Dominican Republic Guide
4. TheLatinvestor - Buy Land Dominican Republic
5. TheLatinvestor - Dominican Real Estate for Foreigners
6. Ocean Side Realty - Buying Guide
7. Grupo Domis - Purchase Process
8. Judicare Group - Legal Requirements
9. Hidden Gem Estates - 2025 Guide
10. Ecovis Global - Real Estate Law