Introduction
This Buyer’s Guide is designed to provide a clear and practical overview of the real estate purchase process in the Dominican Republic. It explains the legal steps, timelines, costs, taxes, and key considerations involved when buying property, particularly for international buyers.
The purpose of this guide is to help buyers understand how property transactions are structured, what to expect at each stage, and which financial and legal obligations apply. While every transaction may vary depending on the property and buyer profile, the information below reflects standard market practices.
This guide is informational in nature and does not replace legal or tax advice. Buyers are always encouraged to work with a qualified real estate professional and attorney to confirm details before signing any binding agreements.
Dominican Republic Buyer’s Guide
Real Estate Overview
The Dominican Republic real estate market has grown steadily due to tourism, foreign investment, and infrastructure development. Property prices have remained competitive compared to other Caribbean destinations, creating opportunities for both lifestyle buyers and investors.
Who Can Buy Property
There are no restrictions on foreign ownership. International buyers and Dominican citizens have the same legal rights to purchase and own property. Residency is not required.
Types of Property Purchases
Buyers may purchase resale properties or new/pre-construction developments. Pre-construction purchases typically follow staged payment schedules, while resale properties usually close within a shorter timeframe.
Buying Basics
Whether purchasing a new construction or an existing property, buyers should clearly understand the property details, payment structure, delivery date, and legal conditions before committing.
The Purchase Process – Overview
The purchase process generally includes a Sale/Purchase Agreement, legal due diligence, notary process, final payments, and title transfer.
Step 1: Sale / Purchase Agreement & Deposit
Once a property is selected, a Sale/Purchase Agreement is signed. This agreement outlines the basic terms and conditions of the transaction. A deposit of approximately 10% is typically paid and held in escrow until closing. Upon signing, the seller is committed to sell the property.
Step 2: Documentation Requirements
The lawyer or notary will request documentation including full legal names of all parties (and spouse if applicable), two copies of identification per person, legal property description, purchase price and payment terms, default clause, delivery date, due diligence requirements, and the seller’s obligation to sign the deed upon final payment.
Step 3: Legal Review & Due Diligence
During this phase, the legal representative verifies ownership, confirms the seller’s right to sell, reviews the contract, and ensures the transaction complies with Dominican property law.
Step 4: Notary Process & Timeline
The notary process typically takes between 3 to 6 weeks, depending on transaction complexity. Buyers are scheduled to sign the Deed of Sale and complete final payments before or at the notary appointment.
Financing Considerations
If financing is required, it is strongly recommended that approval and funding arrangements are in place before signing the final deed to avoid delays.
Closing Costs
Buyers should budget for the following closing costs:
• Transfer Tax: 3% of the property value (exempt if the property qualifies under CONFOTUR)
• Attorney Fees: Approximately 1% – 1.5% of the property value
Annual Property Taxes (IPI)
Properties owned by individuals are subject to an annual property tax (IPI) of 1% on the government-appraised value exceeding DOP 10,190,833 (roughly $166,000 USD in 2025; this threshold is adjusted periodically). Properties below this value are exempt.
CONFOTUR Tax Incentives
CONFOTUR is a government incentive program offering up to 15 years of exemption from property transfer tax and annual property tax for qualifying tourism-related developments.
Property Investment & Rental Income
Many buyers purchase property with the intent to rent. Rental income can provide higher returns compared to traditional investment vehicles, depending on property type, management, and market demand.
Property Insurance
Property insurance is strongly recommended to protect against risks such as natural disasters, damage, theft, and liability. Coverage should reflect property use and location.
International Buyer Information
The purchase process for international buyers is the same as for Dominican residents. Buyers are strongly advised to work with licensed real estate professionals and qualified attorneys to ensure a secure transaction.
Final Considerations
Understanding each step, cost, and legal requirement before purchasing ensures a smooth transaction and protects the buyer’s interests throughout the process.
For personalized guidance based on your situation, professional advice is recommended before proceeding with a property purchase.
