Buying property in the Dominican Republic
Thinking about buying property in the Dominican Republic? Whether you’re planning to retire, invest in a vacation home, or relocate to the Caribbean, purchasing real estate in the DR can be a smart move — if you understand the process. In this comprehensive guide, we explain the step-by-step process of buying property in the Dominican Republic.
🔑 Step 1: The Promise of Sale (Contrato de Venta)
The first major step in a Dominican Republic real estate transaction is the Promise of Sale, a binding agreement signed before a Notary Public. This document outlines the terms of the transaction and protects both the buyer and the seller.
What should be included?
- Full names and IDs of buyer and seller
- Property description (with title info)
- Agreed purchase price and payment schedule
- Timeline for closing
- Penalties for breach of contract
- Obligations for due diligence
- Seller’s guarantees and responsibilities
💡 Pro Tip: Always have a Dominican real estate lawyer review the Promise of Sale to avoid costly legal issues.
📜 Step 2: The Deed of Sale (Contrato de Compraventa)
The Deed of Sale is the official document used to transfer ownership. Like the Promise of Sale, it must be signed in front of a Notary Public.
If you’re making a cash purchase, we recommend skipping the Promise of Sale and going straight to the Deed of Sale after verbal negotiations, which saves time and legal fees.
💰 Step 3: Transfer and Property Taxes
After the Deed of Sale is signed, the buyer is responsible for paying property transfer taxes — currently 3% of the property’s assessed value, as determined by the Dominican Internal Revenue Office (DGII).
Here’s how it works:
- The signed Deed of Sale is submitted to the DGII.
- The DGII appraises the property.
- Taxes are calculated and paid before proceeding to title registration.
📌 Note: This step is mandatory to legally transfer the property into the buyer’s name.
🏛️ Step 4: Filing with the Title Registry Office
Once taxes are paid, the next step is filing all necessary documents at the Title Registry Office in the province where the property is located.
You will need:
- The Deed of Sale
- The seller’s Certificate of Title
- Proof of tax payment from DGII
- Supporting legal documentation
This stage officially registers the property sale and begins the process of issuing the new title.
📄 Step 5: Receive Your New Certificate of Title
Congratulations — once registration is complete, you’ll receive a new Certificate of Title in your name. This document is your legal proof of ownership in the Dominican Republic.
🇩🇴 Why Buy Real Estate in the Dominican Republic?
The Dominican Republic is a top destination for property buyers thanks to:
- Affordable oceanfront real estate
- Low property taxes and no restrictions on foreign buyers
- Growing expat communities in Sosúa, Cabarete, Puerto Plata, and Las Terrenas
- Strong rental income potential in tourist areas
📌 Final Thoughts: Dominican Republic Property Buying Made Simple
While buying property in the Dominican Republic involves legal steps that may be unfamiliar to foreigners, the process is straightforward with the right guidance. Working with experienced professionals ensures your investment is secure and legally protected.
Need Help Buying Property in the DR?
Whether you’re searching for beachfront condos, gated villas, or investment rentals, our team at Instyle Investments is here to help.
