Can foreigners buy property in the Dominican Republic?

Yes. Foreigners can buy property in the Dominican Republic with full ownership rights, just like Dominican citizens. There are no restrictions on foreign buyers.

All you need is:
– A valid passport
– A second form of ID
– The funds for the purchase

Foreign investors enjoy the same legal protections and property rights as locals, making the Dominican Republic one of the most foreign-buyer-friendly real estate markets in the Caribbean.

What is a “Deslinde” and why is it important?

A Deslinde refers to a property that has been properly surveyed and legally separated with clearly defined boundaries, resulting in a Clear Certificate of Title.

Under Dominican Property Registry Law:
– A property cannot be legally transferred without a clear Certificate of Title.
– The Deslinde process confirms exact property boundaries.
– It ensures the seller legally owns the property free of claims or encumbrances.

You should never purchase real estate in the Dominican Republic without a clear Certificate of Title. Your attorney will verify that the property is properly deslindado.

What is CONFOTUR?

CONFOTUR (Law 158-01, modified by Law 195-13) is the Tourism Incentive Law designed to promote development in designated tourism areas.

Benefits for approved projects may include:
– 100% exemption from property transfer tax (for first buyers)
– 15-year exemption from annual property tax (IPI)
– Tax exemptions for developers on construction materials and financing

For buyers, this means substantial savings when purchasing in a CONFOTUR-approved project.

What is the process for buying property in the Dominican Republic?

Step 1 – Offer & Deposit
– Submit a written offer.
– Provide a 1% earnest deposit (refundable if offer is not accepted).

Step 2 – Due Diligence
– Your attorney reviews the Certificate of Title, survey, tax receipts, and seller documentation.

Step 3 – Promise of Sale
– A legally binding contract signed before a Notary Public outlining purchase price, payment terms, and closing details.

Step 4 – Closing
– Signing of the Deed of Sale
– Final payment
– Title transfer registered at the Property Registry Office.

What taxes and closing costs should I expect?

If buying under your personal name:
– 3% Property Transfer Tax (based on government assessed value)
– 1% Annual Property Tax (IPI) on assessed values above DOP $7,138,384.80

If buying through a company:
– 2% tax on company capital

Legal Fees:
– Typically 1% of purchase price

Real estate commissions are paid by the seller, not the buyer.

How do I ensure the property is legally safe?

To protect your investment:
– Work with a reputable, established real estate agency.
– Hire an independent Dominican real estate attorney.
– Confirm clear Certificate of Title and official survey (Deslinde).
– Verify seller identification and tax payment receipts.

Is there an MLS system in the Dominican Republic?

No. The Dominican Republic does not have a centralized MLS system like in the U.S. or Canada.

It is common to see the same property listed with multiple agencies. Choosing the right local real estate agency is critical to receiving accurate information and proper representation.

Should I use a realtor when buying pre-construction property?

Yes. Developer sales representatives work for the developer. A realtor represents your interests.

Benefits include:
– Early access to floor plans and pricing
– Assistance negotiating terms
– Review of construction timelines and contracts
– Ongoing project updates

What about inheritance laws?

Inheritance tax is 3% for residents and 4.5% for non-residents.

Dominican forced heirship laws may override foreign wills. Consult a local attorney for estate planning advice.

What about healthcare in the Dominican Republic?

Public hospitals are low cost but may have limited resources.

Most expatriates choose private insurance and private hospitals.

CEDIMAT in Santo Domingo is considered one of the best hospitals in the Caribbean.

How do I obtain Dominican Residency?

The residency process includes:
1. Applying for a Residence Visa at a Dominican consulate
2. Submitting apostilled documents (birth certificate, police record, etc.)
3. Completing medical exams in Santo Domingo
4. Receiving a 1-year temporary residency card

Estimated legal fees: approximately USD $1,200 for initial processing.

If you need more information or have additional questions, please don’t hesitate to contact us.

We’re here to assist you with clear guidance and expert local advice.