Understanding the Legal Process of Buying Real Estate in the Dominican Republic
Buying property in the Dominican Republic is an exciting opportunity for investors, expats, and retirees. With its stunning beaches, stable economy, and welcoming property laws, the DR has become one of the Caribbean’s top real estate markets. But before signing, it’s important to understand the legal process of buying real estate to ensure a safe and smooth transaction.
Here’s a simplified guide to what you need to know.
Can Foreigners Buy Property in the Dominican Republic?
Yes! Foreigners enjoy the same property rights as Dominican citizens. You don’t need residency or special permits—ownership is straightforward and protected under Dominican law. This makes the DR one of the most accessible countries for international real estate investment.
Types of Property Ownership
The most common forms of property ownership include:
- Freehold (Absolute Property): Full ownership with no restrictions.
- Condominium Ownership: Individual ownership of a unit plus shared rights to common areas.
- Indivision: Joint ownership of the entire property by multiple people.
Other recognized rights include usufruct (use and benefit), easements (access rights), and administrative concessions for land near coastlines or rivers.
Step-by-Step Guide to the Buying Process
- Choose a Property – Visit different areas (Sosúa, Cabarete, Puerto Plata, Punta Cana) and decide what fits your lifestyle or investment goals.
- Make an Offer – Your real estate agent prepares an Offer to Purchase outlining price and terms.
- Hire an Attorney – Always work with an independent real estate attorney to review the deal.
- Deposit & Due Diligence – You send a deposit to the attorney’s escrow account while they:
- Verify title is clear of liens or debts.
- Check taxes and fees are paid.
- Review condo or HOA regulations.
- Contract of Sale – Your attorney drafts the sales contract (Contrato de Venta) in Spanish, with an English translation.
- Payment – Pay the balance as per contract terms (installments if under construction).
- Deed of Sale & Registration – The deed is signed before a Notary Public, then registered at the Title Registry Office. A new Certificate of Title is issued in your name.
⏱️ Timeline: Most transactions close within 30–60 days.
Taxes, Fees & Incentives
- Transfer Tax: Normally 3% of property value.
- Attorney Fees: Around 1%–1.5% of purchase price.
💡 Tip: Properties under the CONFOTUR Law (Law 158-01) may be exempt from transfer tax and annual property taxes (IPI) for up to 15 years, saving buyers thousands.
Common Mistakes to Avoid
- ❌ Skipping due diligence on title and taxes.
- ❌ Not hiring your own attorney (never rely only on the seller’s).
- ❌ Overlooking tax implications or exemptions.
FAQs About Buying Property in the Dominican Republic
Do foreigners face restrictions on property ownership?No. Foreigners can buy property freely with full rights.
Do I need to be in the DR to close?Not necessarily. You can grant power of attorney to your lawyer to sign for you.
How long does it take to register a property?Typically 4–8 weeks, depending on the complexity of the transaction.
Final Thoughts
The legal process of buying property in the Dominican Republic is straightforward—as long as you work with trusted professionals and conduct proper due diligence. With clear laws protecting foreign buyers, tax incentives through CONFOTUR, and an active real estate market, the DR is a prime destination for Caribbean investment and retirement.
👉 Ready to buy property in the Dominican Republic? Contact our expert team today for guidance through every step of the process.
