How to Buy Property in the Dominican Republic: Complete Guide for Foreigners (2025)

The Dominican Republic has become one of the Caribbean's most popular destinations for international real estate investment. Whether you are looking for a vacation home, a rental investment property, or a retirement retreat, this guide covers everything you need to know about buying property in the DR as a foreigner.

Can Foreigners Buy Property in the Dominican Republic?

Yes. Foreigners have the exact same property rights as Dominican citizens. There are no restrictions on foreign ownership of real estate in the Dominican Republic. You do not need residency or citizenship to purchase property.

The Buying Process Step by Step

1. Find Your Property

Use CasaAI's AI-powered search to browse thousands of properties across the DR. Describe what you are looking for in natural language — for example, "2-bedroom condo in Punta Cana under $150,000" — and get instant results.

2. Hire a Local Attorney

A Dominican real estate attorney will conduct due diligence, including title searches, lien checks, and property verification. Attorney fees typically range from 1-2% of the purchase price.

3. Make an Offer and Sign a Promise of Sale

Once you find your property, your attorney will prepare a "Promesa de Venta" (Promise of Sale). A deposit of 10-30% of the purchase price is typically required.

4. Complete Due Diligence

Your attorney will verify the property title at the Title Registry Office (Registro de Títulos), check for liens or encumbrances, and ensure all property taxes are current.

5. Sign the Final Contract and Pay

The final sale contract is signed before a Dominican notary public. The remaining balance is paid, and the 3% transfer tax is submitted to the DGII (Dominican tax authority).

6. Register the Property

The new title is registered in your name at the local Title Registry Office. This process takes 30-90 days.

Costs of Buying Property in the DR

• Transfer Tax: 3% of the appraised or sale price (whichever is higher)
• Attorney Fees: 1-2% of purchase price
• Notary Fees: 0.25-0.5%
• Title Registration: Approximately 0.5%
• Total Closing Costs: Approximately 5-7% of purchase price

Confotur Tax Benefits

Properties with Confotur certification (Law 158-01) qualify for significant tax exemptions:

• Exemption from the 3% transfer tax on first purchase
• Exemption from annual property tax (IPI) for 10-15 years
• Exemption from capital gains tax on resale
• Most new developments in tourist zones (Punta Cana, Cap Cana, Bavaro, Samana) qualify

Best Areas for Foreign Buyers

Punta Cana and Cap Cana

The most popular area for international buyers. Beachfront condos, luxury villas, and resort-style living. Strong Airbnb rental market with 6-10% annual returns.

Santo Domingo

The capital city offers urban apartments, penthouses, and a vibrant lifestyle. Popular neighborhoods include Piantini, Naco, Bella Vista, and Gazcue.

Las Terrenas (Samana)

A charming beach town with a large expat community from France, Italy, and Canada. Affordable beachfront properties with a laid-back Caribbean lifestyle.

Cabarete and Sosua (North Coast)

Popular with adventure sports enthusiasts and digital nomads. Condos and villas at competitive prices with good rental potential.

Jarabacoa

Mountain living with cool weather and lush nature. Villas and land at very affordable prices. Growing interest from retirees.

Financing Options

While most foreign buyers pay cash, financing is available:

• Banreservas: Offers mortgages for foreigners and the Dominican diaspora, with rates starting at 5.8% fixed
• Banco Popular: International mortgage programs available
• Developer Financing: Many developers offer payment plans during construction (typically 30-50% down, remainder over 12-36 months)

Find Your Property with CasaAI

CasaAI is the Dominican Republic's AI-powered real estate platform. Search in English or Spanish using natural language, browse properties on an interactive map, and contact agents directly via WhatsApp. Start your property search today.