Buyer's Guide
Buying property in the
Dominican Republic
What foreign buyers need to know about title, process, closing costs and tax — written plainly, without the brochure gloss.
The Dominican Republic is one of the more straightforward Caribbean jurisdictions for a foreign buyer. There are no ownership restrictions, the registry is reliable where a property is properly surveyed, and the process is familiar to anyone who has bought in the United States or Europe. The pitfalls are specific and avoidable.
1. Foreign ownership
There are no restrictions on foreign ownership of Dominican real estate. You do not need residency, a local partner, or a Dominican company. Foreign buyers take the same freehold title as nationals and have the same recourse to the courts.
Many buyers still hold through a company — Dominican or foreign — for estate planning, privacy or tax reasons. That decision changes your annual tax treatment, so make it with advice before you sign, not after.
2. Title and the Deslinde
The Dominican Republic uses a Torrens-style registry: the state registers title, and the register is the record. The key document is the Certificado de Título, and the key process behind it is the Deslinde — the survey that fixes an individual parcel's boundaries and produces its own registered title.
Land that has never been deslindado sits inside a larger, older parcel with shared title. It can be bought and it can be resolved, but it is where most Dominican title disputes begin. Insist on a completed Deslinde. Costa Verde 3's cadastral survey is published in full on the floor plans and survey page.
3. The purchase process
- Offer and promise of sale. A Contrato de Promesa de Venta sets price, deposit and timetable, and is signed before a notary. Deposits are commonly 10%.
- Due diligence. Your attorney searches the title at the registry, confirms the Deslinde, checks for liens, mortgages and unpaid taxes, and verifies the seller's authority to sell. This is the part that protects you; do not compress it.
- Deed of sale. The Contrato de Venta is signed and notarised, and the balance is paid.
- Tax and registration. Transfer tax is paid to the DGII, and the deed is filed with the Registry of Title, which issues a new Certificado de Título in your name.
A clean cash purchase typically takes four to eight weeks end to end, with the registry step being the least predictable part.
4. Costs and taxes
The figures below are the ones in force at the time of writing and are given as a planning guide only. Dominican rates, thresholds and exemptions change, and the tax authority's assessed value can differ from your purchase price. Verify every number with a Dominican attorney or tax adviser before you rely on it.
- Property transfer tax — 3% of the value assessed by the DGII, payable on registration.
- Legal fees — commonly 1% to 1.5% of the purchase price.
- Notary and registration — modest by comparison; budget with your attorney.
- Total acquisition cost — most buyers plan for roughly 4% to 5% of value.
- Annual property tax (IPI) — 1% on the portion of an individual's total property value above an inflation-adjusted exemption threshold. Company-held property is treated differently.
- Rental income — taxable in the Dominican Republic, and likely reportable in your home country. Take cross-border advice if you intend to let the property.
5. CONFOTUR
CONFOTUR, under Law 158-01, is the Dominican tourism incentive regime. Approved developments can carry exemption from transfer tax and from annual property tax for a defined period, which is why you will see it advertised heavily on new-build listings.
The benefit belongs to the approved project, not to the buyer, and its availability on a resale is specific to that property and its remaining term. Treat any claimed CONFOTUR benefit as unconfirmed until your attorney has seen the paperwork.
6. Residency
Buying property does not by itself grant residency. The Dominican Republic does operate an investor residency route, with a commonly cited qualifying threshold of US$200,000, which can lead to an expedited path to permanent residency and, in time, citizenship. It is a separate immigration process with its own requirements, and those requirements move — take current advice.
7. Practical advice
- Use your own Dominican attorney, not the seller's and not the developer's.
- Confirm the Deslinde exists and matches the ground before you pay a deposit.
- Ask for a DGII tax-status certificate showing no outstanding IPI on the property.
- If the property is staffed, understand Dominican labour law obligations before completion — severance rules are meaningful and inherited staff arrangements are a real liability.
- If you are buying a rental business, ask for operating statements, not projections.
This page is general information, not legal or tax advice. It reflects our understanding at the time of writing and may not be current. Dominican law, tax rates and exemption thresholds change. Always instruct a qualified Dominican attorney and take tax advice in your own jurisdiction before committing to a purchase.
Buying in the Dominican Republic — common questions
Can foreigners buy property in the Dominican Republic?
Yes. The Dominican Republic places no restrictions on foreign ownership of real estate. Foreign buyers acquire the same freehold title as Dominican nationals, with no requirement to be resident, to hold a local partner, or to form a Dominican company — although many buyers still use a company for estate-planning reasons.
What is a Deslinde, and why does it matter?
The Deslinde is the surveying and registration process that fixes a parcel's boundaries and produces a definitive registered title under the Dominican Republic's Torrens-style system. A property with a completed Deslinde has a state-guaranteed, individually registered boundary. Buying land without one is the single most common source of title trouble in the country. Costa Verde 3 has a registered cadastral survey; it is published on the floor plans page.
What are the closing costs when buying in the Dominican Republic?
The largest item is property transfer tax, currently 3% of the value assessed by the DGII (the tax authority), which may differ from the purchase price. Add legal fees, typically around 1% to 1.5%, plus registration and notary costs. Most buyers budget roughly 4% to 5% of value in total. Rates and thresholds change — confirm current figures with Dominican counsel before you commit.
What is the annual property tax in the Dominican Republic?
The annual property tax is the IPI, charged at 1% on the portion of an individual's aggregate property value above an exemption threshold that is adjusted for inflation each year. Properties held by companies are treated differently. Confirm the current threshold and how it applies to your holding structure with a Dominican tax adviser.
What is CONFOTUR?
CONFOTUR is the Dominican tourism incentive regime, created under Law 158-01. Approved tourism developments can receive exemptions from property transfer tax and from annual property tax for a defined period. The benefit attaches to the approved project, so whether any exemption is available on a particular resale must be confirmed for that specific property — never assume it transfers.
Does buying property give you residency in the Dominican Republic?
Property ownership alone does not automatically confer residency, but the Dominican Republic operates an investor residency route for qualifying investments, with a commonly cited threshold of US$200,000. It is a separate application handled by immigration counsel, and the requirements change — take current advice rather than relying on a figure you read online.
How long does a purchase take?
A straightforward cash purchase of a titled, deslindado property typically runs four to eight weeks from signed promise of sale to registered transfer, with the registry step being the variable. Due diligence — title search, tax status, liens, survey verification — happens in parallel and should never be skipped, however clean the property looks.
The Property
Costa Verde 3 — US$18,500,000
A six-bedroom ocean-front villa on the 8th hole of Teeth of the Dog at Casa de Campo, with a registered cadastral survey and an established rental history.