Who can buy property in the Dominican Republic?

As a foreigner, you enjoy the same property ownership rights as Dominican citizens, meaning you can freely purchase and own real estate in the Dominican Republic, including land.

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Investing in Dominican Republic real estate offers attractive benefits due to the country's growing economy, thriving tourism industry, and favorable investment climate. The Dominican Republic is a popular Caribbean destination, known for its beautiful beaches, warm climate, and vibrant culture, which creates strong demand for vacation rentals and residential properties, especially in areas like Punta Cana, Santo Domingo, and Puerto Plata. Property prices are relatively affordable compared to other Caribbean nations, providing opportunities for long-term appreciation and high rental yields.

The Dominican government encourages foreign investment by allowing non-residents to own property and offering tax incentives for real estate investors. Additionally, the country's strategic location, modern infrastructure, and improving transportation links make it increasingly accessible for both tourists and residents. With a stable political environment and ongoing development projects, the real estate market in the Dominican Republic is positioned for continued growth, making it a compelling choice for investors seeking rental income or a tropical getaway.

Here are some sought-after destinations for real estate investment in the Dominican Republic:

• Punta Cana - Known for its stunning beaches and luxury resorts, Punta Cana is one of the most popular real estate destinations in the Dominican Republic. It attracts both tourists and investors due to its strong rental market, especially for vacation homes, condos, and beachfront villas. Areas like Cap Cana and Bavaro are particularly desirable for their high-end properties and proximity to golf courses and marinas.
• Santo Domingo - As the capital and largest city, Santo Domingo is the economic and cultural hub of the country. Real estate in neighborhoods such as Piantini, Naco, and Gazcue offers modern apartments, luxury condos, and commercial spaces. Santo Domingo is ideal for investors looking for urban properties with strong rental potential and opportunities for capital growth.
• Las Terrenas - Located on the Samaná Peninsula, Las Terrenas is a hidden gem for those seeking a more laid-back lifestyle. The area has become increasingly popular with expatriates, offering a mix of beachfront villas, boutique hotels, and charming homes. It’s a prime spot for those looking for investment opportunities in vacation rentals or personal retreats, surrounded by natural beauty.
• Puerto Plata - With its scenic coastline and historic appeal, Puerto Plata is another key destination for real estate investors. The area offers a variety of properties, from affordable homes to luxury beachfront estates. Cabarete and Sosúa, nearby towns, are popular with expats and retirees, offering vibrant communities, water sports activities, and a steady demand for vacation rentals.
• La Romana - La Romana, known for the world-renowned Casa de Campo resort, is a luxury destination that attracts high-end buyers. It features exclusive villas, golf courses, and a marina, making it an ideal location for those seeking luxury real estate. La Romana is perfect for investors interested in premium vacation homes and rental properties in a secure, upscale environment.

Where to find properties online:

• https://www.encuentra24.com/
• https://www.corotos.com.do/
• https://realtordr.com/

Financing

Foreigners can obtain mortgage loans in the Dominican Republic, although the process may be more complex compared to local buyers. Foreigners are typically required to meet certain criteria, such as providing proof of income, a good credit history, and a higher down payment, which can range from 20% to 40% of the property's value.

Due Diligence and Sales Contract 

The due diligence process is a crucial step in the Dominican Republic that involves a thorough assessment of the legal, financial, and physical aspects of a property before completing a purchase. This comprehensive review ensures the seller has clear and legitimate ownership, verifies that the property is free of legal issues such as disputes, debts, or liens that could jeopardize your ownership rights, and confirms that the property complies with all local regulations. It is highly recommended to hire a local attorney or notary to guide you through this process and ensure that everything is in order before finalizing the transaction.

In the Dominican Republic, the property purchase agreement, referred to as the "Contrato de Promesa de Venta," outlines the terms and conditions agreed upon by both the buyer and the seller, including the purchase price, payment terms, and detailed property specifications. Once signed by both parties, this contract becomes legally binding. Working with a local attorney is highly recommended to ensure the process complies with Dominican regulations and to avoid any potential legal or administrative issues.

Property Buying Costs and Taxes in the Dominican Republic

Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property - lawyers' fees, notaries' fees, registration fees, taxes, agents' fees, etc.

Transfer Tax:
Under Law No. 288-04, Transfer Tax is set at 3% and must be paid to the Tax Authority (Direccion General de Impuestos).

Notary Fees
Notary fees are around 0.25% to 1 % of the property value.

Legal Fees
Associated legal fees for property transactions are around 1.00% of the property value.

Real Estate Agent's Fee:
The real estate agent's fee is negotiable, typically between 2% and 3% of the purchase price.