How to buy property in the Dominican Republic as a foreigner
Foreigners can buy real estate in the Dominican Republic with the same rights as locals. This guide walks you through the process, the checks and the taxes.
The Dominican Republic is one of the countries in the region where foreigners can buy property without special restrictions and with the same rights as citizens. Whether you are looking for a holiday home, a place to retire or an income-producing apartment in Santo Domingo, the process is straightforward if you follow a few key steps.
Can foreigners own property?
Yes. Foreign individuals and companies can buy and register real estate with the same rights as Dominican nationals. You do not need to be a resident, and you can hold the property in your own name or through a company. The Foreign Investment Law (Law 16-95) guarantees equal treatment for foreign investors.
The purchase process, step by step
- Define your goals and budget. Decide whether you are buying to live, to rent or both, and in which area.
- Choose the property. Visit in person or remotely, and ask for the building rules, maintenance fees and — for rental units — the operating model.
- Hire an independent lawyer. A Dominican real estate lawyer reviews the documents and protects your interests. If you cannot travel, you can sign a power of attorney.
- Check the title. Your lawyer requests a certificate of the legal status of the property (certificación de estado jurídico) from the Title Registry to confirm the owner and any mortgages or liens.
- Sign the purchase agreement. The contract sets the price, the payment schedule and the deadlines. In new developments, payments usually follow the progress of construction.
- Pay the taxes and register. Once the final sale contract is signed, the transfer tax is paid and the Title Registry issues the new title in your name.
Taxes and costs
| Item | What to expect |
|---|---|
| Real estate transfer tax | 3% of the property value, paid once when the title is transferred |
| Annual property tax (IPI) | 1% per year on the value above an exemption threshold updated by the DGII |
| Legal fees | Agreed with your lawyer — ask for a written quote in advance |
| Condominium fees | Monthly contribution for the common areas and services of the building |
Tax rules change. Always confirm current rates, thresholds and exemptions with your lawyer or the Dirección General de Impuestos Internos (DGII).
Documents you will need
- A valid passport
- Proof of the source of funds, as required by the anti-money-laundering law (Law 155-17)
- Company documents, if you buy through a legal entity
- A power of attorney, if someone signs on your behalf
Residency and incentives
Buying property does not automatically grant residency, but the Dominican Republic offers residency options for investors and for people with a regular pension or passive income. Law 171-07 provides special incentives for foreign retirees and rentistas who settle in the country. Requirements change, so check them with a migration lawyer.
Buying a condo-hotel unit
In a condo-hotel you own your apartment while a professional operator runs the building as a hotel. It is a popular option for investors who live abroad: the operator takes care of guests, cleaning and maintenance, and you receive income from the stays.
- Ask for the operating agreement and read how income and costs are shared.
- Check how often you will receive occupancy and income reports.
- Find out how many nights a year you can use the apartment yourself.
- Visit the building and review guest ratings on the booking platforms.
At Real Capital Caribe we develop and operate condo-hotels in Santo Domingo: Central Suites Tower and Central Park Tower. Contact our team to learn about current opportunities.
This guide is for general information only and does not constitute legal or tax advice.
Frequently asked questions
Can a foreigner buy property in the Dominican Republic without residency?
Yes. Residency is not required to buy and register property in the Dominican Republic.
How much is the property transfer tax in the Dominican Republic?
The transfer tax is 3% of the property value and is paid once, when the title is transferred to the buyer.
Is there an annual property tax?
Yes. The IPI is 1% per year on the portion of the property value above an exemption threshold that the DGII updates periodically.
Can I buy property remotely?
Yes. You can grant a power of attorney to a lawyer or trusted person in the Dominican Republic to sign on your behalf.
