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Everything you need to know before buying real estate is included in our The Dominican Republic Property Pack
Santo Domingo offers one of the Caribbean's most foreigner-friendly and transparent real estate markets.
Foreign buyers enjoy the same property rights as Dominican citizens, with minimal restrictions and a straightforward purchase process. The capital city combines modern urban amenities with rich cultural heritage, making it an attractive destination for both investment and relocation purposes.
If you want to go deeper, you can check our pack of documents related to the real estate market in the Dominican Republic, based on reliable facts and data, not opinions or rumors.
Foreigners can buy any type of property in Santo Domingo with the same rights as Dominican citizens, except for border areas and beachfront land.
The process is straightforward but requires independent legal counsel, with total costs around 5-6% of purchase price including taxes and fees.
| Aspect | Details | Cost/Timeline |
|---|---|---|
| Property Rights | Same as Dominican citizens | No restrictions on number/value |
| Transfer Tax | Paid by buyer | 3% of purchase price |
| Annual Property Tax | Only on value above $166,000 | 1% on excess amount |
| Legal/Notary Fees | Attorney and registration | 2-2.5% total |
| Process Timeline | From offer to title transfer | 30-60 days typically |
| Financing Options | Local mortgages available | 8-10% USD, 25-40% down |
| Average Prices | Central Santo Domingo | $2,400/m² (~$225/sq ft) |
What kinds of properties can foreigners legally buy in Santo Domingo and are there any restrictions?
Foreigners can legally purchase residential, commercial, and agricultural properties in Santo Domingo with the same rights as Dominican citizens.
The Dominican Republic grants foreign buyers full ownership rights with no limits on the number, size, or value of properties they can own. This makes it one of the most foreigner-friendly real estate markets in the Caribbean.
The main legal restrictions apply to specific locations rather than property types. Foreigners cannot buy land within 60 kilometers of international borders without presidential approval, which is rarely granted. The first 60 meters from any shoreline is classified as public domain and cannot be privately owned by anyone, whether Dominican or foreign.
Properties in national parks and protected environmental areas are also off-limits to private ownership. These restrictions are clearly defined and well-documented, so they're easy to identify during property searches.
All other residential properties, including apartments, houses, condos, and townhouses, can be purchased freely by foreigners throughout Santo Domingo.
Do property purchases in the Dominican Republic give foreigners a path to residency or citizenship?
Buying property in the Dominican Republic does not automatically grant residency or citizenship to foreign purchasers.
However, significant real estate investment can facilitate the residency application process. Foreigners who invest at least $200,000 in real estate or business ventures can apply for fast-track residency status, which streamlines the normal immigration procedures.
The investor residency program requires maintaining the investment for the duration of the residency period and demonstrating the legal source of funds. This investment-based residency can lead to permanent residency after maintaining the status for the required period.
Citizenship remains a separate process that requires first obtaining residency, then meeting additional requirements including basic Spanish proficiency and physical presence in the country for at least six months prior to naturalization. The Dominican Republic does not offer a "golden passport" program for instant citizenship through investment.
Property ownership does make it easier to establish ties to the country and demonstrate commitment during residency applications, even without the formal investor program.
Where do foreigners usually buy property in Santo Domingo and which neighborhoods are the most popular?
Foreign buyers and expats concentrate their purchases in five main upscale neighborhoods that offer security, amenities, and international-standard infrastructure.
| Neighborhood | Character | Key Features |
|---|---|---|
| Piantini | Luxury urban district | High-end apartments, nightlife, shopping centers, restaurants |
| Serralles | Quiet residential | Green spaces, proximity to malls, top-rated schools |
| Naco | Cosmopolitan hub | Modern gyms, international dining, business centers |
| Bella Vista | Diplomatic area | Embassy district, international schools, parks |
| Evaristo Morales | Value-oriented | Balanced cost-convenience ratio, near upscale areas |
What's the step-by-step process for buying property as a foreigner in Santo Domingo?
The property purchase process in Santo Domingo follows a structured six-step procedure that can be completed in 30-60 days.
First, hire a reputable, bilingual local real estate agent and an independent attorney who specializes in real estate transactions. This legal representation is crucial for protecting your interests throughout the process.
Second, select your property and negotiate the purchase price with the seller. Once terms are agreed, you'll sign a "Promise of Sale" agreement and typically pay a 10% deposit to secure the property.
Third, your attorney conducts thorough due diligence, including title searches, lien checks, and verification of the property's legal and tax status. This step is essential to ensure clear ownership transfer.
Fourth, sign the final purchase contract before a notary public and pay the remaining balance. The notary will prepare the deed and ensure all legal requirements are met.
Fifth, register the new title at the Land Registry Office to officially transfer ownership to your name. This creates the legal record of your ownership.
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What documents do you need to provide and which ones are mandatory versus optional?
The document requirements for foreign property buyers in Santo Domingo are straightforward and clearly defined by Dominican law.
Mandatory documents include:
- Valid passport and one additional form of identification
- Completed "Know Your Customer" form provided by your attorney
- Dominican Tax Identification Number (RNC), which your lawyer will help you obtain
- Evidence of legal source of funds, such as bank statements, tax returns, or income verification
- For married buyers: spouse's identification and completed forms
Optional or situational documents include:
- Police background report (required only if applying for investor residency)
- Marriage certificate (needed only for joint property purchases)
- Additional financial documentation for mortgage applications
- Power of attorney documents for remote transactions
- Apostilled documents for certain legal procedures
Can you complete the entire purchase without being physically in the country?
Yes, the entire property purchase process can be completed remotely using a power of attorney arrangement.
This legal mechanism allows your Dominican attorney to sign documents, transfer funds, and complete the title registration on your behalf. The power of attorney must be properly notarized and may require apostille certification depending on your home country.
However, most experienced buyers recommend at least one in-person visit to inspect the property and meet with your legal team. This personal inspection helps identify potential issues that photos and virtual tours might miss.
Remote purchases work best for buyers working with established, reputable attorneys who can provide detailed documentation and regular updates throughout the process. Video calls and digital document sharing make remote coordination much more feasible than in the past.
It's something we develop in our Dominican Republic property pack.
What are the typical taxes, fees, and extra costs involved in buying and owning property there?
Property purchase and ownership costs in Santo Domingo are clearly defined and relatively moderate compared to other Caribbean markets.
| Cost Type | Rate/Amount | Paid By |
|---|---|---|
| Transfer Tax | 3% of purchase price | Buyer (one-time) |
| Annual Property Tax | 1% on value above $166,000 | Owner (yearly) |
| Notary Fees | 1-1.5% of purchase price | Buyer (one-time) |
| Registration Fees | ~1% of purchase price | Buyer (one-time) |
| Stamp Tax | Flat minor fee (~$50) | Buyer (one-time) |
| Agent Commission | 5-6% typically | Seller (one-time) |
| Capital Gains Tax | 0% for individuals | N/A |
Can foreigners buy in cash, and if yes, what are the common practices around that?
Cash purchases are completely legal and common practice for foreign buyers in Santo Domingo real estate transactions.
All funds must be proven legal and traceable to their source, typically through bank statements, tax returns, or other financial documentation. This requirement helps comply with international anti-money laundering regulations.
Large cash transactions are normally executed through secure bank wire transfers rather than physical cash handling. Dominican banks and attorneys use established escrow account systems to protect both buyers and sellers during the transfer process.
Many foreign buyers prefer cash purchases because they eliminate financing complications, speed up the transaction process, and often provide leverage for better pricing negotiations with sellers.
Cash buyers can typically complete purchases in 30-45 days compared to 60-90 days for financed transactions, making their offers more attractive to sellers in competitive markets.
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.
Is mortgage financing available to foreigners, under what conditions, and what interest rates or types of loans are offered?
Several Dominican banks offer mortgage financing to foreign buyers, though terms are more restrictive than for Dominican citizens.
Major lenders include Scotiabank, Banco Popular, and Banreservas, all of which have established foreign buyer programs. These banks require down payments of 25-40% of the purchase price, significantly higher than the 10-20% common in North American markets.
Loan-to-value ratios typically range from 50-75%, with repayment terms of 10-25 years. Interest rates vary by currency: USD-denominated loans carry rates of 8-10% annually, while Dominican peso loans have higher rates of 13-14% due to currency risk factors.
Foreign applicants must provide extensive documentation including passport, tax returns from their home country, proof of income, credit reports, and often employment verification letters. The approval process typically takes 30-60 days and requires a Dominican bank account.
Most foreign buyers opt for cash purchases or arrange financing through banks in their home countries using existing assets as collateral, which often provides better rates and more flexible terms.
What are the classic mistakes and pitfalls foreigners run into when buying property in Santo Domingo?
Foreign buyers commonly make seven critical errors that can result in significant financial losses or legal complications.
The most dangerous mistakes include:
- Not hiring independent legal counsel: Using the seller's or developer's attorney creates conflicts of interest
- Skipping thorough due diligence: Failing to verify clear title, outstanding liens, or unpaid taxes
- Assuming familiar legal processes: Dominican property law differs significantly from US or European systems
- Ignoring zoning and building regulations: Properties may have illegal additions or permit violations
- Signing vague or incomplete contracts: Poorly defined terms can lead to disputes or additional costs
- Falling for pre-construction scams: Unverified developers may take deposits without proper permits
- Rushing the process: Pressure to close quickly often leads to overlooked problems
It's something we develop in our Dominican Republic property pack.
What is life like as an expat in Santo Domingo and how does the lifestyle compare with expectations?
Expat life in Santo Domingo offers a vibrant urban experience with both significant advantages and notable challenges that often differ from initial expectations.
Positive aspects that typically exceed expectations:
- Rich cultural scene with museums, theaters, historic architecture, and lively nightlife
- Year-round tropical climate with average temperatures of 25-30°C (77-86°F)
- Significantly lower cost of living for housing, dining, and services compared to Western cities
- Access to quality international schools and modern healthcare facilities
- Friendly, welcoming local population and established expat communities
Challenges that often surprise newcomers:
- Heavy traffic congestion and limited parking in central areas
- Periodic power outages and inconsistent internet service in some neighborhoods
- Spanish language requirement for most daily activities and bureaucratic processes
- Higher prices for imported goods and some Western-style amenities
- Bureaucratic procedures that can be time-consuming and complex
What are the average prices, typical rental yields, and the long-term real estate market outlook for Santo Domingo?
As of September 2025, Santo Domingo real estate prices remain attractive compared to other Caribbean capital cities while showing strong growth potential.
Average apartment prices in central Santo Domingo range around DOP 12,683 per square foot, equivalent to approximately $225 per square foot or $2,400 per square meter. Houses typically offer better value per square foot due to land inclusion.
Rental yields in well-located properties range from 7.6% to 10% annually, particularly strong in central areas and neighborhoods with tourist appeal. These yields significantly exceed those available in most North American and European markets.
The market outlook remains positive with property values rising 5-7% year-over-year recently, driven by infrastructure improvements, steady economic growth, and increasing demand from both local buyers and international investors.
Santo Domingo property prices remain 20-30% lower than comparable Caribbean capitals like San Juan or Nassau, suggesting continued upside potential as the market matures and infrastructure develops further.
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.
Santo Domingo represents one of the Caribbean's most accessible and profitable real estate markets for foreign investors.
The combination of clear legal frameworks, reasonable costs, and strong growth potential makes it an attractive option for both investment and relocation purposes, provided buyers work with qualified local professionals.
Sources
- Dominican Today - Foreign Property Ownership
- Simply Dominican - Foreign Buyer Requirements
- Hidden Gem Estates - Property Buying Guide
- CitizenX - Dominican Republic Golden Visa
- Dominican Today - Best Neighborhoods for Expats
- The Latin Investor - Buy Land Dominican Republic
- The Latin Investor - Dominican Real Estate for Foreigners
- Perez Real Estate - Mortgages for Foreigners
- International Investment - Market Price Growth
- Global Property Guide - Rental Yields