How to buy property in Santo Domingo as a foreigner?

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 Santo Domingo. 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 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.

Can foreigners buy property in Santo Domingo the same way locals do, or are there restrictions?

Foreigners can buy and own property in Santo Domingo with exactly the same rights as Dominican citizens.

There are no restrictions based on citizenship, nationality, residency status, or visa type. You can purchase residential properties, condominiums, houses, and land with full ownership rights. This includes the right to sell, rent, inherit, and transfer the property without additional permits or government approvals.

The Dominican Republic operates under a freehold system, meaning you own both the property and the land it sits on indefinitely. Unlike some countries that restrict foreign ownership to certain areas or property types, you can buy anywhere in Santo Domingo and throughout the Dominican Republic.

The only requirement is obtaining a Dominican Tax Identification Number (RNC), which your lawyer will handle during the purchase process. This applies to all property buyers, both foreign and local.

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

Do I need residency, a visa, or any special permit to purchase property as a foreigner?

You do not need residency, a visa, or any special permit to purchase property in Santo Domingo as a foreigner.

You can buy property while on a tourist visa, which allows stays of up to 30 days (extendable to 90 days). Many foreign buyers complete their purchases during vacation trips to the Dominican Republic. The process doesn't require any minimum stay period or ongoing residency commitment.

You can even complete the entire transaction remotely without visiting the Dominican Republic by granting power of attorney to a local lawyer. This remote purchase option is commonly used by international investors and buyers who prefer to handle the transaction from their home country.

The Dominican Tax Identification Number (RNC) is the only additional requirement beyond what locals need, and this is processed as part of the standard purchase procedure.

Is it necessary to be physically present in the Dominican Republic to complete the transaction?

Physical presence is not required to complete a property transaction in Santo Domingo.

You can appoint a qualified Dominican real estate lawyer to act as your representative through a power of attorney. This legal document allows your attorney to sign contracts, transfer funds, and complete all necessary paperwork on your behalf. The power of attorney must be notarized and apostilled in your home country before use in the Dominican Republic.

Many buyers choose to visit for property inspections and to meet their legal team, but the actual closing can be completed remotely. Virtual property tours, video calls with lawyers, and digital document reviews have made remote purchases increasingly common since 2020.

If you do visit, budget time for due diligence activities like property inspections, neighborhood visits, and meetings with your legal team. Most buyers who visit spend 5-10 days handling the purchase process and exploring potential properties.

What are the exact steps and documents required to legally buy property there?

The property buying process in Santo Domingo follows these specific steps:1. **Property search and selection**: Research neighborhoods, work with licensed real estate agents, and conduct property visits or virtual tours2. **Make an offer**: Negotiate price and terms, leading to a "Promise of Sale" (Promesa de Venta) contract3. **Hire a Dominican real estate lawyer**: Essential for foreigners to handle due diligence and legal compliance4. **Due diligence period**: Lawyer verifies title, checks for liens or legal issues, confirms property boundaries and taxes5. **Sign preliminary contracts**: Execute the Promise of Sale before a notary (who is a qualified lawyer in the Dominican Republic)6. **Deposit payment**: Transfer typically 10-20% of purchase price to escrow7. **Final closing**: Sign the Deed of Sale (Contrato de Compraventa) before notary8. **Tax payment and registration**: Pay 3% transfer tax, register ownership at Title Registry office, receive Certificate of TitleRequired documents include:- Valid passport- Dominican Tax Identification Number (RNC)- Property title and certificate of no outstanding debts- Purchase contracts and due diligence report- Proof of income and bank statements (if obtaining financing)- Power of attorney (if completing transaction remotely)The entire process typically takes 30-60 days from accepted offer to final ownership transfer.

Is hiring a lawyer mandatory, and how do I choose a reliable one?

Hiring a Dominican real estate lawyer is not legally mandatory but is highly recommended and practically essential for foreign buyers.

A qualified lawyer protects your interests by conducting proper due diligence, verifying property titles, checking for liens or legal disputes, and ensuring compliance with Dominican real estate laws. They also handle the RNC application, contract negotiations, and title registration process.

When selecting a lawyer, verify they are licensed with the Dominican Bar Association (Colegio de Abogados) and have specific experience in real estate transactions. Request references from previous foreign clients and ensure they maintain professional indemnity insurance. Avoid using lawyers recommended by sellers or developers, as this creates potential conflicts of interest.

Reputable lawyers typically charge 1-1.5% of the purchase price for their services. They should provide clear fee structures upfront and maintain client trust accounts for deposit handling. Many experienced lawyers are members of the AEI (Asociación de Empresas Inmobiliarias), the Dominican real estate association.

Choose lawyers who speak your language fluently and can explain complex legal concepts clearly. They should provide regular updates throughout the process and be available for direct communication.

What taxes, fees, and extra costs should I expect when buying, owning, and later reselling property?

Cost Category	Rate/Amount	When Applied
Transfer Tax	3% of purchase value	At purchase
Legal/Notary Fees	1-1.5% of purchase price	At purchase
Registration Fees	~1% of purchase price	Title registration
Stamp Tax	~RD$1,000 (US$17)	Contract execution
Annual Property Tax (IPI)	1% above RD$10.1M (US$166,000)	Annually on excess value
Real Estate Agent Commission	5% of sale price	When selling
Capital Gains Tax	27% on net profit	When selling
Rental Income Tax	27% on net rental income	Annual on rental properties

Can foreigners get mortgages in the Dominican Republic, and if so, what are the usual rates, terms, and tips to qualify?

Foreigners can obtain mortgages from Dominican banks, though terms are generally less favorable than for residents.

Major lenders include Banco Popular, Banreservas, and Scotiabank, offering both US dollar and Dominican peso loans. Interest rates for foreigners typically range from 6-10% for USD loans and 13-14% for DOP loans as of September 2025. Loan terms extend up to 20-25 years maximum.

Banks require 25-40% down payments from foreign borrowers, with loan-to-value ratios of 50-70% for non-residents. Required documentation includes passport, credit history from your home country, proof of income (tax returns, bank statements), and complete property documentation.

To improve qualification chances, maintain strong credit history, provide substantial income documentation, consider using local bank relationships, and work with mortgage brokers familiar with foreign applicant processes. Some buyers establish Dominican bank accounts and build local credit history before applying.

Processing times typically take 45-90 days, and banks may require property appraisals from approved local valuers. It's something we develop in our Dominican Republic property pack.

What are the main mistakes and pitfalls foreigners often fall into when buying in Santo Domingo?

Common mistakes that cost foreign buyers significant money and legal problems include:1. **Skipping proper due diligence**: Failing to verify clear title, existing liens, property boundaries, or legal disputes can result in costly legal battles or loss of property2. **Underestimating total costs**: Not budgeting for the full 4-6% in closing costs beyond the purchase price, including taxes, legal fees, and registration costs3. **Choosing inappropriate locations**: Buying in areas unsuitable for intended use (rental income, personal residence, or resale potential) without local market knowledge4. **Purchasing sight unseen**: Buying properties without physical inspection or thorough virtual tours, leading to surprises about condition, neighborhood, or amenities5. **Ignoring rental regulations**: Not understanding HOA rules, rental restrictions, or local zoning laws that could limit income potential6. **Falling for common scams**: Using seller-recommended lawyers, accepting handshake deals, making cash payments without proper documentation, or failing to verify seller credentials7. **Poor currency planning**: Not considering exchange rate fluctuations when financing in different currencies or planning ongoing expenses

Always insist on notarized contracts, independent legal representation, and traceable banking transactions to avoid these costly mistakes.

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 in Santo Domingo are most popular among foreigners for living, renting out, or long-term investment?

The most sought-after neighborhoods for foreign buyers in Santo Domingo offer different advantages depending on investment goals.

Piantini stands out as the premier luxury district, featuring high-end condominiums, vibrant nightlife, top restaurants, and the main business district. Foreign buyers pay premium prices here but benefit from stable appreciation and strong rental demand from business travelers and affluent locals.

Naco attracts professionals with its cosmopolitan atmosphere, modern apartment buildings, and proximity to offices and shopping centers. This area offers excellent rental yields for long-term tenants and maintains strong resale values.

Bella Vista appeals to families and retirees with its leafy streets, embassy district location, parks, international schools, and established expat community. Properties here offer good value and steady appreciation potential.

Seralles provides a quieter, more residential environment with green spaces, local shops, and social centers, attracting buyers seeking peaceful living with city access. Evaristo Morales offers more affordable entry points while maintaining central location and amenities access.

Zona Colonial draws investors focused on tourism income through Airbnb and boutique hotels, capitalizing on Santo Domingo's UNESCO World Heritage status and cruise ship visitors.

How do different neighborhoods compare in terms of liveability, tourism numbers, rental yields, and growth forecasts?

Neighborhood	Liveability Rating	Tourism Level	Rental Yield Range	Growth Forecast
Piantini	High luxury living	Medium business tourism	7-9% annually	Highest, stable appreciation
Naco	High business district	Low leisure tourism	7-9% annually	High, stable growth
Bella Vista	Green, family-friendly	Low tourism	6-8% annually	Growing steadily
Seralles	Quiet, upscale residential	Minimal tourism	6-8% annually	Steady appreciation
Evaristo Morales	Good value, central	Low tourism	8-10% annually	High appreciation potential
Zona Colonial	Vibrant, historic character	High cultural tourism	8-10% annually	Solid growth, tourism-driven
Santo Domingo Este	Affordable, developing	Growing tourism	6-9% annually	Fastest growth potential

What's the current breakdown of property prices in Santo Domingo and other Dominican regions?

As of September 2025, Santo Domingo property prices vary significantly by neighborhood and property type.

Santo Domingo apartments average US$1,800-$2,800 per square meter, with luxury properties in Piantini and Naco commanding US$3,000-$4,500 per square meter. Median house prices range from US$150,000 in central areas to US$250,000+ in premium neighborhoods, while ultra-luxury properties can exceed several million dollars.

Regional price comparisons show Santo Domingo Province averaging DOP 122,000 (approximately US$2,050) per square meter, while Distrito Nacional reaches DOP 127,846 (approximately US$2,150) per square meter. These prices reflect the capital's premium over other Dominican cities.

Coastal alternatives like Punta Cana command US$2,200-$3,500 per square meter for beachfront properties, while Cabarete averages DOP 150,318 per square meter. Santiago, the second-largest city, offers more affordable options at 20-30% below Santo Domingo prices.

Luxury condominiums in prime Santo Domingo locations range from US$250,000-$600,000, with penthouses and premium units exceeding US$1 million. Entry-level apartments in developing areas start around US$80,000-$120,000.

What are the fiscal implications for foreigners, including rental income taxes and capital gains when reselling?

Foreign property owners in Santo Domingo face several ongoing tax obligations and implications for rental income and property sales.

Annual property tax (IPI) applies at 1% of assessed value above the RD$10.1 million (US$166,000) exemption threshold. This tax is aggregated across all property holdings in the Dominican Republic, so multiple properties may push total value above the exemption limit even if individual properties fall below it.

Rental income from Santo Domingo properties is taxed at 27% of net income after allowable deductions including maintenance, insurance, property management, and depreciation. Gross rental yields in Santo Domingo typically range from 7.5-8.4% annually, making net yields approximately 5-6% after taxes and expenses.

Capital gains tax applies at 27% of net profit when selling property, calculated as sale price minus purchase price and qualified improvements. Foreign retirees may qualify for partial exemptions under certain circumstances, and properties held over 10 years may receive reduced rates.

Additional selling costs include 5% real estate agent commission and potential legal fees for transaction handling. It's something we develop in our Dominican Republic property pack.

VAT at 18% applies only to commercial property rentals, not residential rental income. Proper expense documentation and professional tax advice can optimize your tax obligations while ensuring compliance with Dominican tax laws.

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 Guide 2025
2. Overseas Dream Home Dominican Republic Guide
3. The LatinvestoR Dominican Real Estate for Foreigners
4. The LatinvestoR Buy Land Dominican Republic
5. Real Estate Las Terrenas Commercial Property Guide
6. Simply Dominican Foreign Buyer Requirements
7. AreaVista Property Buying Steps
8. Judicare Group Dominican Property Law
9. Dominican Today Best Neighborhoods for Expats
10. Noriega Group Property Taxes for Foreigners