Buying property in the Dominican Republic

Yes. Foreign individuals and companies have the same property rights as Dominican citizens: no residency, no local partner and no special permit are required, and there is no limit on how much you can own. The title is issued in your own name. The one physical limit applies to everyone: the first 60 metres inland from the high-tide line are public and cannot be privately owned.

For a normal resale purchase, plan for roughly 4 to 6 percent of the price: the 3 percent property transfer tax (on the higher of the price or the tax office’s assessed value), plus about 1 to 1.5 percent for your attorney and notary. Complex purchases can cost more. The agent’s commission is usually paid by the seller.

The annual property tax (IPI) is 1 percent, charged only on the combined value of your Dominican property above an exempt threshold that is reset every year (about RD$10.7 million in 2026). A single property below that value may owe little or no IPI. The sole home of an owner aged 65 or older is exempt.

CONFOTUR (Law 158-01) is a tax incentive for individually approved tourism projects. For the first buyer of an approved project it waives the 3 percent transfer tax and usually the annual property tax for up to 15 years. Sosúa, Cabarete and Puerto Plata are eligible areas, but few projects here hold approval, so it has to be checked for each project. The benefits do not pass to a later buyer.

You agree on a price, hire your own attorney, who checks the title, liens and taxes, and sign a promise of sale, usually with a deposit of about 10 to 20 percent. The deed of sale is signed before a notary, the transfer tax is paid, and the title registry issues a new certificate of title in your name. Plan for roughly 45 to 90 days. A passport is enough; you do not need residency.

Some Dominican banks lend to non-residents, but with larger down payments (plan for at least 30 percent) and higher interest rates than in the US or Canada. Most foreign buyers pay cash or use developer payment plans for new construction, where the price is paid in stages during the build.

Since the tax reform of June 2026 (Law 30-26), individuals pay a flat 10 percent on the gain, not on the sale price, due within six months of the sale. Older sources that quote 25 percent are out of date. Some exemptions exist for a primary residence; ask your attorney how the rules apply to you.

For one holiday home, buying in your own name is simpler and often cheaper in annual tax. A Dominican company (SRL) can make sense with several properties, a rental business, co-investors or estate planning, but it pays a 1 percent asset tax on the full value without the individual exemption. Decide this with a Dominican attorney and your home-country tax advisor.