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
Buying property in the Dominican Republic as a US citizen is more straightforward than most people expect, but there are real rules, taxes, and banking steps you need to understand before making a move.
This guide covers everything from your legal rights as an American buyer and the documents you will need, to mortgage options, closing costs, and how US taxes apply to Dominican real estate in 2026.
We constantly update this blog post so the information here always reflects the latest official sources and data available.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in The Dominican Republic.
Can a US citizen legally buy residential property in The Dominican Republic right now?
Can I buy a home in The Dominican Republic as a US citizen in 2026?
As of early 2026, US citizens can legally buy any type of residential property in the Dominican Republic, including apartments, houses, villas, and land, under the same property laws that apply to Dominican nationals.
The standard process requires you to sign a notarized purchase contract, pay the transfer tax through the DGII (the Dominican tax authority), and then register the title in your name at the Registro Inmobiliario, which is the country's official land and title registry.
What really makes the purchase official in the Dominican Republic is not the contract itself but the moment the Registro de Titulos issues the property title in your name (or your company's name), so you should never consider a deal "done" until that registration is complete.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in the Dominican Republic.
Are there many Americans buying property and living in The Dominican Republic in 2026?
As of early 2026, the Dominican Republic is home to an estimated 300,000 US citizens living in the country, while roughly 3 million Americans visit each year, making it one of the most "American-connected" real estate markets in the Caribbean.
The heaviest concentrations of American property buyers and expats in the Dominican Republic are found in Punta Cana and Cap Cana (La Altagracia province), Las Terrenas and Samana on the northeast coast, Sosua and Cabarete in Puerto Plata, and select upscale neighborhoods in Santo Domingo.
The top three reasons Americans choose to buy in the Dominican Republic are the significantly lower cost of living compared to the US, the warm climate and beach lifestyle, and the relative ease of property ownership with no restrictions on foreigners.
The American expat community in the Dominican Republic has been steadily growing over the past decade, driven by remote work flexibility, rising US housing costs, and the country's expanding infrastructure in tourism and residential areas.
Do foreigners have the same buying rights as locals in The Dominican Republic?
Under Dominican law, foreign buyers, including US citizens, have the same general property rights as locals, meaning there is no special restriction or extra tax that applies just because you hold a foreign passport.
There are no property types or locations in the Dominican Republic that are formally off-limits to foreign buyers, so whether you want to buy a beachfront condo in Punta Cana, a house in Santo Domingo, or a plot of land in Samana, the legal framework treats you the same as a Dominican buyer, though you will need to provide extra documentation like your passport and a second official ID.
We cover all these things in length in our pack about the property market in The Dominican Republic.
Can I buy property in The Dominican Republic without a residence permit?
You do not need a Dominican residence permit to buy property in the Dominican Republic, and the official transfer requirements at the Registro Inmobiliario ask for identity documents (passport plus a second ID), not proof of residency.
If you are living abroad, you can complete the entire purchase remotely by granting a power of attorney to a local lawyer who will sign documents, pay taxes, and handle the title registration on your behalf.
However, buying a property in the Dominican Republic does not automatically give you a visa or residency rights, so if living in the country is part of your plan, you will need to apply for residency separately through Dominican immigration.
The main practical challenge for non-resident buyers in the Dominican Republic is coordinating everything from a distance, because tasks like notarizing contracts, making peso-denominated tax payments, and responding to registry requests all move faster when you have a trusted local representative handling them in person.
Can US citizens own land in The Dominican Republic?
US citizens can own land outright in the Dominican Republic, including residential plots, beachfront lots, and rural parcels, with the same full ownership rights as a Dominican national once the title is registered.
The Dominican Republic operates on a freehold-style ownership system, meaning that when the Registro de Titulos registers the title in your name, you own the property permanently with no expiration date, unlike leasehold systems in some other countries where you only hold a time-limited right to use the land.
There are no specific geographic zones or land categories in the Dominican Republic where foreign land ownership is prohibited, though you may occasionally encounter resort developments that use leasehold arrangements by contract, so you should always verify you are getting titled (freehold) ownership before committing.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in the Dominican Republic.
What documents will I need to buy in The Dominican Republic?
To buy residential property in the Dominican Republic as a US citizen, you will need your valid passport, a second official ID from your home country (like a driver's license), a notarized purchase contract, the seller's certificate of title, proof the property is current on annual property tax (IPI), and proof the transfer tax has been paid.
A Dominican tax identification number (RNC) is not always required for individuals buying in their personal name, but if you are purchasing through a company, the Registro Inmobiliario will require the entity's RNC along with corporate registration documents.
A local Dominican bank account is not legally mandatory to complete a property purchase in the Dominican Republic, but it is very helpful in practice for paying local taxes and fees in Dominican pesos, and it becomes essential if you plan to take out a mortgage.
Banks and some sellers in the Dominican Republic may ask you for proof of funds, especially for higher-value properties, and as a US citizen you should also expect FATCA-related compliance questions (like providing your Social Security number or a W-9 form) when opening a bank account or making large transactions.
We have a whole section dedicated to all the documents you need in our The Dominican Republic property pack.
Can a foreign-owned company buy property in The Dominican Republic?
A foreign-owned company can legally buy residential property in the Dominican Republic, and the Registro Inmobiliario's transfer process explicitly includes requirements for juridical persons, such as providing the company's RNC (tax ID) and proof of the authorized representative's powers.
Some Americans do use LLC-style structures (typically a Dominican SRL, which is the local equivalent of a limited liability company) to hold property in the Dominican Republic, usually for estate planning, co-ownership arrangements, liability protection, or rental operations, but it is not a requirement to buy.
Owning through a company does not typically lower your tax burden in the Dominican Republic, and for US citizens it can actually increase your overall reporting complexity because the IRS may require you to file additional forms when you hold an interest in a foreign entity, even if the only asset is a house.
The main drawback of using a company to hold residential property in the Dominican Republic is the added cost and paperwork: you will need to maintain the entity's legal standing, file corporate tax returns in both countries, and potentially trigger IRS forms like Form 8938 and Form 5471, which would not apply if you simply owned the property in your personal name.
Thinking of buying real estate in the Dominican Republic?
Acquiring property in a different country is a complex task. Don't fall into common traps – grab our guide and make better decisions.
What taxes and fees will I pay in The Dominican Republic in 2026?
What are buyer taxes in The Dominican Republic in 2026?
As of early 2026, the main buyer tax on a residential property purchase in the Dominican Republic is the 3% transfer tax, which means that on a home worth RD$12,600,000 (about US$200,000 or EUR 192,000), you would pay roughly RD$378,000 (about US$6,000 or EUR 5,750) in transfer tax alone.
The transfer tax of 3% is the single biggest tax component for buyers in the Dominican Republic, and on top of it there is also an annual property tax called IPI, which applies at 1% on the assessed value of all your Dominican properties above an exempt threshold of about RD$10,700,000 (roughly US$170,000 or EUR 163,000) in 2026.
The buyer tax rates in the Dominican Republic do not differ based on nationality, so Americans pay exactly the same 3% transfer tax as Dominican buyers, and there is also no distinction between a primary residence and an investment property when it comes to the transfer tax rate, though some purchases through qualifying low-cost housing (fideicomiso) programs may receive exemptions.
If you want to go into more details, we also have a page detailing all the property taxes and fees in the Dominican Republic.
What are other closing costs in The Dominican Republic in 2026?
As of early 2026, you should budget roughly 2% to 4% of the purchase price for non-tax closing costs in the Dominican Republic, which on a US$200,000 property means about US$4,000 to US$8,000 (RD$250,000 to RD$500,000 or EUR 3,850 to EUR 7,700) on top of the 3% transfer tax.
The main closing cost categories in the Dominican Republic include legal fees for your buyer's lawyer (typically 1% to 1.5% of the purchase price, or US$2,000 to US$3,000 on a US$200,000 property), notary fees for document authentication (a few hundred dollars), and Registro Inmobiliario service and registration fees (small fixed amounts like RD$300 to RD$800 plus minor statutory charges).
Legal fees are the most negotiable closing cost in the Dominican Republic, since lawyer rates are not fixed by law and can vary depending on the complexity of your transaction, while registry fees and notary charges are largely standardized and leave little room for negotiation.
The single closing cost that tends to surprise foreign buyers in the Dominican Republic the most is the cost of extra due diligence, because thorough title history checks, boundary surveys, lien searches, and condo regime verifications can add several hundred to over a thousand dollars, and skipping them to save money is a risk most experienced advisors strongly warn against.
Are there hidden fees foreigners miss in The Dominican Republic right now?
Foreign buyers in the Dominican Republic commonly overlook an extra RD$60,000 to RD$190,000 (roughly US$1,000 to US$3,000 or EUR 950 to EUR 2,900) in process-related costs that are not technically "hidden" but simply not obvious at the start of a purchase.
The top three unexpected costs foreign buyers in the Dominican Republic fail to budget for are: translation, apostille, and certification of foreign documents (which can run US$300 to US$800 or RD$19,000 to RD$50,000 depending on complexity), FATCA-related bank compliance steps for US citizens that add time and sometimes banking fees, and developer or HOA "transfer fees" in condo or resort projects that are contractual charges on top of government costs (sometimes US$500 to US$2,000 or RD$31,000 to RD$126,000).
After the purchase, the ongoing annual costs foreign owners in the Dominican Republic most often underestimate are the IPI property tax (1% above the RD$10,700,000 threshold, which can mean US$300 to US$1,000 or more per year depending on property value), HOA or condo maintenance fees (which range widely from US$50 to US$500 or more per month), and property management costs if you are not living in the country full-time.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in the Dominican Republic.
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 I get a mortgage as a US citizen in The Dominican Republic in 2026?
Do banks lend to US citizens in The Dominican Republic in 2026?
As of early 2026, several major Dominican banks do offer mortgage financing to US citizens, and at least one large bank (Banco Popular) publicly lists a dedicated set of requirements specifically for foreign mortgage applicants.
US citizens are generally treated the same as other foreign nationals when applying for a mortgage in the Dominican Republic, though Americans may face slightly more paperwork because Dominican banks are required to comply with FATCA regulations and must properly classify US persons in their systems.
The main reason some banks in the Dominican Republic are hesitant to lend to American borrowers specifically is the extra compliance burden that FATCA creates, since banks must collect US tax identifiers, file reports with the IRS, and manage the associated regulatory risk, which smaller institutions sometimes prefer to avoid.
While there are no published approval-rate statistics for foreigners, US citizens with strong documentation (verifiable income, solid credit history, and a clean compliance profile) who are buying in established areas like Punta Cana or Santo Domingo generally have a reasonable chance of approval, especially at the larger banks experienced with international clients.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in The Dominican Republic.
What down payment do American people need in The Dominican Republic in 2026?
As of early 2026, non-resident US citizens buying in the Dominican Republic should expect to put down at least 30% to 40% of the property's value, which on a typical US$200,000 home means roughly US$60,000 to US$80,000 (RD$3,775,000 to RD$5,030,000 or EUR 57,500 to EUR 77,000) as a minimum down payment.
The typical down payment range for foreign buyers in the Dominican Republic goes from 30% at the low end (for well-documented borrowers buying in bank-preferred projects) up to 40% or more for buyers with less local credit history or income that is harder to verify, while foreigners who already hold Dominican residency may qualify for terms closer to 20% to 30%.
A larger down payment in the Dominican Republic does generally improve your mortgage terms, because it lowers the bank's risk exposure and can lead to a slightly better interest rate, faster approval, and fewer conditions attached to the loan.
You can also read our latest update about mortgage and interest rates in The Dominican Republic.
What interest rates do US citizens get in The Dominican Republic in 2026?
As of early 2026, US citizens taking out a peso-denominated (DOP) mortgage in the Dominican Republic can expect interest rates in the range of 10% to 12%, based on central bank data showing that the average bank mortgage rate was 11.81% as of November 2025.
Interest rates for foreign buyers in the Dominican Republic are generally in the same range as those offered to local residents, since Dominican banks price mortgages based on the central bank's policy rate and the borrower's risk profile, not their nationality.
Most mortgages available to foreign buyers in the Dominican Republic are structured with fixed rates for an initial period (often 1 to 5 years) before adjusting, and typical loan terms run from 15 to 25 years, though some banks offer fully fixed options at slightly higher rates.
The single biggest factor that affects the interest rate a US citizen will be offered in the Dominican Republic is the quality and verifiability of your income documentation, because banks view borrowers with strong, well-documented, and stable income as significantly lower risk, which directly translates to better rate offers.
Can I use US income to qualify in The Dominican Republic right now?
Most Dominican banks that lend to foreigners will accept US-sourced income to qualify for a mortgage in the Dominican Republic, as long as you can document it clearly and completely.
Banks in the Dominican Republic typically ask American mortgage applicants for recent pay stubs or an employer letter, the last two to three years of US tax returns, several months of US bank statements showing consistent deposits, and sometimes a US credit report or reference letter from your American bank.
If your standard US documentation is insufficient (for example, if you are self-employed or have irregular income), some Dominican banks may accept alternative verification such as CPA-certified financial statements, business tax returns, or a larger down payment to offset the documentation gap.
Get fresh and reliable information about the market in the Dominican Republic
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
How do US taxes interact with owning property in The Dominican Republic?
Do I have to declare the property to the IRS from The Dominican Republic?
If you own a residential property in the Dominican Republic directly in your personal name, the property itself is not considered a "specified foreign financial asset" by the IRS, which means it does not need to be reported on Form 8938 (the FATCA reporting form for individuals).
However, if you own the property through a foreign company, trust, or partnership, your interest in that entity can become a reportable foreign financial asset, potentially triggering Form 8938 and other forms like Form 5471 (for foreign corporations) or Form 3520 (for foreign trusts).
Simply owning a home in the Dominican Republic that you use personally does not by itself trigger any special IRS filing, but the moment you earn rental income, sell the property at a gain, or hold it through a foreign entity, you will likely have US tax reporting obligations because the IRS taxes American citizens on their worldwide income regardless of where it is earned.
Will I pay tax twice in the US and The Dominican Republic in 2026?
As of early 2026, there is a real possibility of being taxed on the same property income or gains by both the Dominican Republic and the United States, because the US taxes its citizens on worldwide income and the Dominican Republic taxes income sourced within its borders.
There is no income tax treaty between the United States and the Dominican Republic as of early 2026 (the IRS treaty list, last reviewed January 3, 2026, does not include the Dominican Republic), which means you cannot rely on a bilateral agreement to automatically prevent or reduce double taxation.
The main tool Americans use to avoid paying tax twice is the US Foreign Tax Credit, which allows you to offset taxes you have already paid to the Dominican government against your US tax liability on the same income, effectively reducing or eliminating the duplication in most cases.
Whether Dominican property taxes (like the IPI) are deductible on your US federal tax return depends on your personal situation and current US tax rules around foreign property tax deductions, so this is best treated as a question for your CPA rather than something to assume.
Do I need FATCA reporting when buying in The Dominican Republic?
FATCA (the Foreign Account Tax Compliance Act) does not require you to report the act of buying a house in the Dominican Republic, because FATCA focuses on foreign financial accounts and entity interests, not on real estate held directly in your personal name.
The FATCA reporting thresholds that could apply to you as a US citizen are tied to foreign financial accounts and foreign entity interests: for individuals living in the US, Form 8938 filing is triggered when foreign financial assets exceed US$50,000 at year-end (or US$75,000 at any point during the year), so if you open Dominican bank accounts or hold property through a foreign company, those balances and interests could push you above the threshold.
FATCA reporting (Form 8938, filed with your tax return) is different from FBAR reporting (FinCEN Form 114, filed separately with the Treasury), and if you have Dominican bank accounts with a combined balance over US$10,000 at any point during the year, you will likely need to file the FBAR in addition to any FATCA forms.
Consulting a US CPA before buying property in the Dominican Republic is strongly recommended, and the specific questions to ask are: whether your ownership structure (personal vs. entity) triggers any IRS reporting, whether your Dominican bank accounts require FBAR and FATCA filings, how rental income will be reported and what expenses you can deduct, and how the Foreign Tax Credit applies to your specific situation.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Dominican Republic. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about The Dominican Republic, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why we trust it | How we used it |
|---|---|---|
| Constitution of the Dominican Republic | It is the country's highest legal text, published officially. | We used it to establish that foreigners have the same core property rights as nationals. We cross-checked it against the foreign investment law for consistency. |
| Foreign Investment Law No. 16-95 | It is the official text hosted by the Dominican tax authority. | We used it to confirm the "equal treatment" rule for foreign investors in the Dominican Republic. We verified it alongside the Constitution and property registration framework. |
| Registro Inmobiliario (Title Transfer Requirements) | It is the official land registry, part of the Judicial Branch. | We used it as the master checklist for transfer documents, fees, and ID requirements. We relied on its specific wording about passport and second-ID requirements for foreigners. |
| DGII Property Transfer Brochure | It is official guidance from the Dominican tax authority. | We used it to explain the practical steps and tax paperwork for a property purchase. We cross-checked it against the Registro Inmobiliario procedures to ensure the steps match. |
| DGII Resolution DDG-AR1-2026-00001 | It is the official 2026 fiscal-year adjustment from the tax authority. | We used it for the 2026 IPI exemption threshold and the official exchange rate. We relied on its published figures to give accurate dollar approximations. |
| Banco Popular (Foreigner Mortgage Requirements) | It is a major Dominican bank's own published lending criteria. | We used it to describe the real documents banks ask foreign mortgage applicants for. We then generalized carefully while noting that requirements can vary between banks. |
| Listin Diario (citing BCRD mortgage rate data) | It is a major national newspaper citing central bank statistics. | We used it to anchor the "typical mortgage rate" at 11.81% for late 2025. We treated it as secondary confirmation of official central bank data. |
| IRS - US Income Tax Treaties A-to-Z | It is the IRS's official, regularly updated treaty list. | We used it to verify there is no US-Dominican Republic income tax treaty as of early 2026. We explained the practical impact of "no treaty" for American property buyers. |
| US Treasury - FATCA Agreement with the Dominican Republic | It is the official intergovernmental agreement text from US Treasury. | We used it to explain why Dominican banks ask Americans for extra compliance documents. We connected it to practical steps like W-9 and self-certification forms. |
| US State Department OIG - Embassy Santo Domingo Report | It is an official US government audit report. | We used its estimates of US residents and visitors in the Dominican Republic. We connected those numbers to geographic patterns of American buyer demand. |
| IRS - Form 8938 Q&A | It is the IRS's direct guidance on foreign asset reporting. | We used it to clarify what is and is not reportable (direct real estate vs. entity interests). We relied on it to explain why company ownership can trigger extra US filing obligations. |
Get to know the market before buying a property in the Dominican Republic
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.