Is buying property in Dominican Republic safe?

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, Santiago, and Punta Cana. 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 are the current property laws in the Dominican Republic?

The Dominican Republic operates under a civil law system that provides comprehensive legal protection for property owners, including foreign nationals.

Property ownership is documented through a Certificate of Title (Título de Propiedad) issued by the Title Registry Office, which serves as the definitive legal proof of ownership. The legal framework allows foreigners to have exactly the same property rights as Dominican citizens, with no nationality or residency restrictions whatsoever.

The current legal system requires all property transactions to be registered with the Land Registry (Registro de Títulos) to be legally valid. As of September 2025, the Dominican Republic maintains one of the most foreign-friendly property ownership laws in Latin America, allowing full ownership of land, homes, condominiums, and commercial properties.

Property laws also include specific provisions for beachfront properties, which may have government easements for public access, and tourism-incentive properties under CONFOTUR regulations that can receive tax exemptions.

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

How can I verify the ownership history of a property in the Dominican Republic?

Property ownership verification in the Dominican Republic is conducted through the official Land Registry system using the property's plot or lot number and municipality information.

You can request a registry search directly from the Dominican Republic Land Registry (Registro de Títulos) or hire certified agents and legal services to perform this verification. The registry search reveals the complete ownership history, including current and previous owners, any existing liens, mortgages, legal disputes, or property restrictions.

A qualified local attorney or specialized firm should perform this verification process, as they can properly interpret the registry documents and identify potential red flags. The registry search typically takes 3-5 business days and costs between $200-500 USD depending on the complexity of the property history.

The verification process also includes checking for unpaid taxes, utility bills, homeowner association fees, and any pending litigation that could affect the property title. This comprehensive background check is essential before proceeding with any property purchase in the Dominican Republic.

Is the title of the property free of any legal disputes?

Determining if a property title is free of legal disputes requires a thorough examination of the Land Registry records and court filings in the jurisdiction where the property is located.

Document Type	What It Reveals	Potential Issues
Certificate of Title	Current legal owner	Forged or invalid titles
Registry Search	Ownership history and liens	Undisclosed mortgages or debts
Court Records	Pending litigation	Property disputes or claims
Tax Records	Payment status	Outstanding tax obligations
Municipal Records	Zoning and permits	Illegal constructions or violations
Survey Documents	Boundary accuracy	Encroachments or boundary disputes
Environmental Reports	Land use restrictions	Protected areas or limitations

Are there specific regulations for foreign buyers in the Dominican Republic?

The Dominican Republic imposes no special regulations or restrictions on foreign property buyers, treating international purchasers identically to Dominican citizens under the law.

Foreign buyers can purchase any type of property including land, houses, condominiums, and commercial real estate without requiring residency, work permits, or Dominican nationality. There are no limits on the number of properties a foreigner can own or the total value of their real estate holdings.

The only documentation required from foreign buyers is a valid passport and proof of funds for the purchase. Some banks may require additional documentation for financing, but cash purchases involve no special foreign buyer requirements beyond standard legal procedures.

Foreign-owned properties are subject to the same taxes and legal obligations as Dominican-owned properties, including the annual property tax (IPI) and transfer taxes. Properties purchased under tourism incentive programs may qualify for tax exemptions regardless of the buyer's nationality.

What are the risks of buying property in the Dominican Republic for non-residents?

Non-resident property buyers in the Dominican Republic face several key risks that can be mitigated through proper due diligence and legal representation.

1. **Fraudulent property listings and fake titles** are the primary risk, particularly in tourist-heavy areas where scammers target foreign buyers with attractive but non-existent properties. 2. **Undisclosed liens and debts** on properties can transfer to new owners if not properly identified during the purchase process. 3. **Boundary disputes and illegal constructions** may not be apparent without proper surveying and municipal permit verification. 4. **Tax obligations and hidden fees** can accumulate if previous owners failed to pay property taxes or homeowner association dues. 5. **Currency fluctuation risks** affect buyers using foreign currency for purchases, potentially impacting long-term investment returns.

The most effective risk mitigation strategy involves hiring a qualified local attorney to conduct comprehensive due diligence, including title verification, tax status confirmation, and legal compliance checking. Non-residents should also consider title insurance, which is available but not mandatory, as additional protection against unforeseen legal issues.

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

Do I need a local attorney to complete a property transaction in the Dominican Republic?

While hiring a local attorney is not legally mandatory for property transactions in the Dominican Republic, it is strongly recommended and considered essential for protecting buyer interests.

A qualified Dominican real estate attorney provides crucial services including title verification, contract review, due diligence coordination, and ensuring proper registration with the Land Registry. The attorney also verifies seller identity, confirms property boundaries, checks for encumbrances, and reviews all tax and utility payment status.

Legal fees typically range from 1-2% of the purchase price, which includes attorney services, notarization, and registry fees. This investment significantly reduces the risk of fraud, title disputes, or legal complications that could cost substantially more to resolve later.

Attempting to complete a property transaction without legal representation exposes buyers to significant risks including invalid contracts, fraudulent sellers, undisclosed liens, and improper title transfer. The complexity of Dominican property law makes professional legal guidance invaluable for foreign buyers.

What is the process for due diligence when buying property in the Dominican Republic?

Due diligence for Dominican Republic property purchases follows a systematic verification process that typically takes 2-4 weeks to complete thoroughly.

Due Diligence Step	Timeline	Key Verification Points
Title Registry Search	3-5 business days	Ownership history, liens, legal disputes
Court Records Check	5-7 business days	Pending litigation, judgments
Tax Status Verification	2-3 business days	Property taxes, municipal fees
Survey and Boundaries	5-10 business days	Property limits, encroachments
Municipal Permits Review	3-5 business days	Building permits, zoning compliance
Utility Status Check	1-2 business days	Water, electricity, internet connections
Environmental Assessment	7-14 business days	Protected areas, usage restrictions

Are there any taxes or fees associated with buying property in the Dominican Republic?

Property purchases in the Dominican Republic involve several mandatory taxes and fees that buyers must budget for in addition to the purchase price.

The primary cost is the transfer tax of 3% calculated on the higher value between the actual purchase price or the government's legal appraisal value. This tax is paid at closing and cannot be avoided regardless of the buyer's nationality or residency status.

Additional costs include legal and notary fees (typically 1-2% combined), registry fees for title transfer, and potential surveying costs if boundary verification is required. Annual property tax (IPI) applies at 1% for properties valued above approximately RD$9 million (roughly $160,000 USD as of September 2025).

Properties qualifying under CONFOTUR tourism incentive laws can receive transfer tax exemptions and up to 15 years of property tax exemptions, significantly reducing the total cost of ownership. Buyers should verify CONFOTUR eligibility during the due diligence process to maximize potential savings.

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.

What is the general property market trend in the Dominican Republic?

The Dominican Republic real estate market has demonstrated strong growth momentum throughout 2024 and into September 2025, driven by increased tourism, foreign investment, and government incentives.

Coastal areas including Punta Cana, Puerto Plata, and Las Terrenas have experienced property value increases of 8-12% annually, while urban markets in Santo Domingo and Santiago show more moderate but steady growth of 5-7% per year. Foreign buyer activity remains robust, representing approximately 35-40% of total luxury property transactions.

Tourism recovery post-pandemic has strengthened rental property demand, with vacation rental yields averaging 8-12% annually in prime locations. The government's continued investment in infrastructure, including new airports and highway improvements, supports long-term market growth prospects.

Market analysts project continued appreciation through 2026, particularly in previously underdeveloped coastal areas benefiting from new resort developments and improved accessibility. The Dominican Republic's political stability and favorable economic conditions make it one of the most attractive Caribbean property markets for international investors.

Is it safe to buy property in the Dominican Republic in tourist-heavy areas versus local neighborhoods?

Both tourist-heavy areas and local neighborhoods in the Dominican Republic offer safe property investment opportunities, but each presents distinct advantages and considerations for buyers.

Tourist areas like Punta Cana, Puerto Plata, and Bayahíbe typically offer better infrastructure, higher property values, and stronger rental income potential, but also attract more aggressive marketing and potential scam operations targeting foreign buyers. These areas benefit from enhanced security, international-standard amenities, and established property management services.

Local neighborhoods in cities like Santo Domingo, Santiago, and San Pedro de Macorís offer more affordable property prices, authentic Dominican culture, and lower competition from other foreign buyers, but may require more extensive due diligence regarding infrastructure and local regulations.

Legal protections apply equally in both tourist and local areas under Dominican law. The key safety factor is not location type but rather the thoroughness of due diligence and legal verification processes regardless of where the property is situated.

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

Are there any restrictions on property ownership for foreigners?

The Dominican Republic imposes no restrictions whatsoever on foreign property ownership, making it one of the most accessible real estate markets in Latin America and the Caribbean.

Foreigners can own 100% of any property type including residential land, commercial buildings, condominiums, and beachfront properties with full ownership rights identical to Dominican citizens. There are no limitations on the number of properties, total investment value, or property locations that foreigners can purchase.

The only considerations involve beachfront properties within 60 meters of the high tide line, where the Dominican government maintains easement rights for public access, but this applies equally to Dominican and foreign owners. Properties within this zone can still be fully owned but must respect public access requirements.

Foreign-owned properties can be freely sold, inherited, or transferred without government approval or special procedures. Owners can also lease their properties to generate rental income with no restrictions on tenant nationality or lease terms.

How can I ensure the property is not part of a fraudulent scheme or land grab?

Preventing property fraud in the Dominican Republic requires systematic verification of seller credentials, property documentation, and legal status through multiple independent sources.

1. **Verify seller identity** by confirming they are registered as the legal owner in the Land Registry and requiring official identification documents cross-referenced with title records. 2. **Conduct independent title searches** through the official Land Registry system rather than relying solely on documents provided by sellers or agents. 3. **Hire reputable local attorneys** with verifiable credentials and references from other foreign clients who can identify common fraud patterns. 4. **Inspect original documents** rather than photocopies, ensuring all certificates and titles show proper government seals and signatures. 5. **Confirm property boundaries** through independent surveying to verify the property exists as described and matches registry records.

Red flags indicating potential fraud include sellers pressuring for immediate payment, refusing to allow independent legal review, providing only photocopied documents, or offering properties significantly below market value without clear explanation. Never make any payments before completing full legal verification and signing properly notarized contracts.

Working with established real estate agencies, verified attorneys, and conducting transactions through official banking channels provides additional layers of fraud protection for foreign property buyers.

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. Dominican Certificates - Property Records and Land Titles
5. Eskala - What Foreign Buyers Need to Know
6. Judicare Group - Buying Property in Dominican Republic
7. InStyle Investments - Dominican Houses for Sale
8. DR Lawyer - Buying Real Estate in the Dominican Republic
9. DR Property Guys - Process and Laws Around Buying Property
10. Legal Mondo - How to Find Real Estate Land Register Information