Buying Real Estate in the Dominican Republic
Foreign buyers can generally own Dominican real estate without becoming residents, but a purchase should be treated as a legal transaction first and a lifestyle decision second. The old CaribSurf page referred to the 1947 land law and an older paper-based registry system. The current framework is built around Law 108-05 on Real Estate Registry and the modern Registro Inmobiliario.
Can Foreigners Buy Property?
Yes. Foreign buyers generally have the same basic right to acquire and hold real estate as Dominican citizens and do not need Dominican residency simply to purchase a property. The critical issue is not nationality but whether the seller owns a properly registered property and whether the title, survey, tax position, permits and contractual documentation are clean.
The Legal Framework
| Core registry law | Law 108-05 on Real Estate Registry (Ley 108-05 de Registro Inmobiliario), together with regulations and later amendments. |
|---|---|
| Title system | Registered property rights are evidenced through the Dominican real-estate registry and Certificate of Title system. |
| Transfer | A sale normally involves a notarised transfer instrument, payment/clearance of applicable taxes and registration of the new owner's rights with the relevant Title Registry. |
| Residence | Residence status is generally not a prerequisite to own property. |
Do Not Use the Seller's Lawyer for Your Due Diligence
The most important practical protection is independent legal representation. A good lawyer should confirm the seller's identity and authority to sell, inspect the registered title, verify mortgages and other encumbrances, compare the registered parcel with the physical property, review tax status, and check project or building approvals where relevant.
Documents Your Lawyer Should Check
- Current Certificate of Title and an up-to-date registry certification showing mortgages, liens or other recorded encumbrances.
- Cadastral survey / approved parcel plan and confirmation that the property you inspected is the property described in the registry.
- Identity and marital status of the seller, including any consent required from a spouse.
- If the seller is a company: corporate registration, authority to sell and tax status.
- Property-tax status and any outstanding obligations.
- For a condominium: condominium declaration, regulations, outstanding fees and relevant owners' association records.
- For a house or new project: building permits, approved plans and proof that completed construction is properly incorporated into the registered property.
Typical Purchase Sequence
| 1. Offer / reservation | Do not pay a large non-refundable deposit until your lawyer has reviewed the reservation terms and basic ownership documents. |
|---|---|
| 2. Due diligence | Title, survey, seller, taxes, permits, condominium status and encumbrances are checked independently. |
| 3. Contract | The parties sign the appropriate purchase/transfer agreement. In pre-construction projects a promise of sale and staged payment schedule are common. |
| 4. Tax clearance | Applicable transfer tax and other required charges are dealt with through the Dominican tax authority (DGII). |
| 5. Registration | The transaction is presented to the relevant Title Registry so that the buyer's ownership is registered. |
| 6. Final file | Keep the registered title/certification, contract, proof of taxes, survey and all project documents together. Do not rely only on a developer's receipt. |
Property Transfer Tax
The standard Dominican real-estate transfer tax is 3%. DGII guidance applies the rate to the relevant taxable property value and, in ordinary sales, can use the higher value between the property valuation and the amount stated in the transfer instrument. Exemptions can apply in specific legally qualifying situations, so the lawyer should confirm the exact calculation before closing.
Annual Property Tax (IPI)
For individuals, the Dominican annual property tax is generally 1% on taxable real-estate wealth above the annual exempt amount. For 2026, DGII set the individual exemption threshold at RD$10,695,494. The threshold is adjusted, so a buyer should always check the figure for the relevant tax year rather than copying an old number from a sales brochure.
CONFOTUR: Useful, but Verify the Actual Project
Some tourism developments qualify for tax incentives under the Tourism Development Incentive framework, often marketed simply as “CONFOTUR”. A sales agent may advertise transfer-tax or property-tax exemptions, but the buyer should verify the project's actual approval, the unit's eligibility, the duration of the benefit and what happens after the incentive period. Never treat the word “CONFOTUR” in an advertisement as proof by itself.
Buying Pre-Construction
Off-plan property deserves extra caution because the building may not yet have an individual title. Your lawyer should examine the master title, developer's legal ownership or development rights, permits, construction status, escrow/payment arrangements, delivery deadlines, penalties, cancellation rights and the mechanism by which the final individual title will be created and transferred.
Beachfront and Coastal Property
A sea view does not automatically mean private ownership of everything down to the water. Coastal, environmental, protected-area and planning rules can restrict construction and use. This is particularly important for raw beachfront land, cliffs, mangroves and projects close to protected areas. Obtain planning and environmental confirmation before treating undeveloped land as buildable.
Inheritance and Estate Planning
Foreigners can inherit Dominican property, but inheritance is governed by Dominican succession and tax rules that may not match the rules in the owner's home country. If a property is intended to remain in the family, discuss wills, forced-heirship rules, ownership structure and succession taxes with a lawyer before, not after, a problem arises.
Red Flags
- The seller will not provide a current title copy.
- The physical boundaries do not match the survey.
- A deposit must be paid immediately “before the lawyer gets involved”.
- The person taking money is not the registered owner and has no clear authority to act.
- A promised tax exemption is not supported by official project documentation.
- The project has attractive renderings but no clear permit or construction record.
- The seller suggests understating the real purchase price in the contract.
- You are told independent legal advice is unnecessary.
Official Starting Points
Registro Inmobiliario · Dirección General de Impuestos Internos (DGII)