Buying Property in Dominican Republic as a Foreigner: Complete 2025 Guide

Can Foreigners Buy Property in the Dominican Republic?

Yes, absolutely. The Dominican Republic is one of the most foreign-investor-friendly countries in the Caribbean. Unlike some nations that restrict foreign ownership or require special permits, the DR grants foreigners the same property rights as Dominican citizens. You can purchase land, condos, villas, or commercial properties in your own name with full fee-simple title.

This open policy has made the Dominican Republic a top destination for American, Canadian, and European investors seeking Caribbean real estate. There are no citizenship or residency requirements to purchase property, and you don't need government approval for most transactions.

Legal Requirements for Foreign Property Buyers

The purchase process for foreigners mirrors that of Dominican nationals, with a few additional documentation steps:

• Valid passport: Your primary identification document for all legal transactions.
• Tax ID (RNC): Registro Nacional del Contribuyente, obtained through a local attorney.
• Purchase agreement: A "Contrato de Venta" drafted in Spanish, outlining terms, price, and conditions.
• Title search: Verification through the Registro de Títulos to confirm clear ownership.
• Deslinde: Official land survey confirming property boundaries.

Sadeghi Group connects buyers with bilingual attorneys who specialize in international real estate transactions, ensuring compliance with all Dominican legal requirements.

Closing Costs and Taxes for Foreign Buyers

Budget for approximately 3.5% to 5% of the purchase price in closing costs:

• Transfer tax: 3% of the assessed or sale value (whichever is higher).
• Legal fees: 1% to 1.5% for attorney services, title search, and documentation.
• Title registration: Approximately 0.5% for recording the deed.
• Notary fees: Variable based on transaction complexity.

Annual property taxes (IPI) are remarkably low—just 1% of value exceeding RD$9.9 million (approximately US$170,000), making the Dominican Republic one of the most tax-efficient jurisdictions for property ownership.

Property Ownership Structures for Foreigners

Foreign buyers can hold property through several structures:

• Personal ownership: Direct title in your name—simplest and most common for individual investors.
• Dominican corporation (SRL): Useful for liability protection and estate planning. Requires local legal setup.
• Foreign corporation: Allowed but may complicate banking and future sales.
• Trust structures: Emerging option for estate planning and asset protection.

Most foreign buyers opt for personal ownership unless they're acquiring multiple properties or have specific asset protection needs.

Step-by-Step Purchase Process

1. Property selection: Work with Sadeghi Group to identify properties matching your criteria and budget.
2. Due diligence: Attorney conducts title search, verifies permits, and reviews HOA documents (for condos).
3. Offer and negotiation: Submit formal offer through your attorney; negotiate terms and price.
4. Promise to sell contract: Sign preliminary agreement with deposit (typically 10%).
5. Final due diligence: Complete any remaining inspections or verifications.
6. Closing: Sign final deed before a notary, pay balance and closing costs.
7. Title registration: Attorney registers the property in your name at the Title Registry.

The entire process typically takes 30 to 60 days from accepted offer to recorded title.

Financing Options for Foreign Buyers

While most foreign buyers pay cash, financing options exist:

• Dominican bank mortgages: Available to foreigners with rates around 8-10% and terms up to 15 years. Requires extensive documentation.
• Developer financing: Many new construction projects offer payment plans during construction.
• Home equity: Leverage equity in your home country for a Dominican purchase.
• Self-directed IRA: U.S. citizens can use retirement funds for foreign real estate investment.

Common Mistakes Foreign Buyers Should Avoid

• Skipping due diligence: Always verify title history and boundary surveys.
• Working without a lawyer: Never sign documents without independent legal representation.
• Ignoring HOA rules: Condo buyers should review association bylaws and financial statements.
• Underestimating costs: Budget for closing costs, furnishing, and ongoing maintenance.
• Not planning for currency exchange: Optimize timing and methods for transferring funds internationally.

Start Your Dominican Republic Property Search

Ready to explore your options? Sadeghi Group specializes in guiding foreign buyers through every step of the Dominican Republic real estate process.