The Dominican Republic (D.R.) has become one of the hottest, most attractive real estate markets in the Caribbean, drawing interest from foreign investors, retirees, nomads, home-buyers, and basically anyone looking for a slice of this amazing paradise island. D.R. has it all: affordable property prices, stunning beaches, strongest economy in the Caribbean, and Government incentives, such as CONFOTUR Law, the country offers exceptional opportunities for those looking to invest, relocate, or retire.
Foreign buyers benefit from full property ownership rights, strong rental demand, and various tax exemptions under the CONFOTUR law for eligible properties. So, whether you're seeking a luxury beachfront villa, an investment apartment in the middle of Santo Domingo to rent as an AirBnb, or a peaceful retreat in the beaches of Las Terrenas, Samaná, this guide will take you through every step of buying a property in the Dominican Republic and how can assist you in this process.
But before we start, you might be questioning if...
✅ Yes! Foreigners have the same property rights just as locals!
Unlike many countries that impose restrictions on foreign ownership, the Dominican Republic has a transparent and open real estate market, allowing non-residents to buy, sell, and own property with full legal rights.
Key Points for Foreign Buyers:
• No residency or citizenship is required to buy property (DR also offers an "Investors Residency" for those looking to invest up to USD$200,000).
• There are no limits on the type or number of properties you can purchase.
• The government offers tax incentives for certain real estate investments, particularly in tourism-driven areas.
• All transactions must be conducted in U.S. dollars (USD) or Dominican pesos (DOP).
Step 1: Research the Market to Choose the Right Location
The very first step in buying property is deciding where you want to live or invest. The Dominican Republic offers a variety of real estate markets, each catering to different lifestyles and investment goals.
Here are some of the best locations to buy property in the Dominican Republic, whether you're an investor, developer or expat:
🔹 Santo Domingo: We must start with the capital city of the Dominican Republic. Perfect for investors looking for urban apartments for short-term renting, commercial real estate, and rental properties. It offers a strong economy, consistent growth over the years, international business hubs, and a growing middle-high class.
🔹 Punta Cana: Ideal for luxury beachfront homes, condos, and short-term rentals like Airbnb. This area attracts millions of tourists annually and has high rental yields. The province of La Altagracia (where Punta Cana is located) has some of the beach cities like Bávaro, Macao or Cap Cana- an extraordinary closed-community home of some of the most exclusives villas in the whole country, along side with Casa de Campo in La Romana (Check our article Cap Cana vs Casa de Campo for more information!).
🔹 La Romana: Known for exclusive golf resorts and high-end properties, like Casa de Campo, a luxury resort community with impressive oceanfront villas, incredible private beaches, a marina, and much more. If you're looking for a location to invest in a property, there's no place better than Casa de Campo to secure your investment.
🔹 Samaná: A hidden gem for those seeking eco-friendly real estate, private beachfront homes, and investment opportunities in a quieter, less commercialized area. Las Terrenas, a small city in this province is a true jewel and for some locals, this place has the most paradisiacal beaches in the whole country.
🔹 Puerto Plata: Home of some established expats communities like Sosua or Cabarete, with affordable beachfront properties, tourism-driven real estate, strong rental demand and lots of fun activities like Kite-surfing.
🔹 Jarabacoa: A cold city in the Caribbean? YES! Jarabacoa is located in a mountainous region offering cooler weather, beautiful scenic views, and sustainable real estate investments. Ideal for nature lovers and retirees.
Step 2: Find a Reputable Real Estate Agent
While buying property without an agent is possible, working with a licensed real estate professional is highly recommended. Many real estate listings in the Dominican Republic are not centralized in MLS (Multiple Listing Services), making it challenging to navigate the market alone.
A trusted local agent will:
✅ Help you find properties that match your needs & budget.
✅ Guide you through legal requirements & paperwork.
✅ Negotiate the best price & avoid overpriced listings.
✅ Verify property title history to prevent fraudulent transactions.
Step 3: Conduct Legal Due Diligence
Before purchasing property, it’s essential to verify the property title and confirm legal ownership. The Dominican Republic has a Torrens Title system, which means all property titles are registered with the government.
Key Due Diligence Steps:
✅ Verify Title Ownership – Ensure the seller has a clear, legal title registered at the Title Registry Office.
✅ Check for Liens or Debts – Some properties may have outstanding mortgages or legal disputes.
✅ Survey the Property – Confirm the exact property boundaries with a land surveyor.
✅ Obtain a Certification of No Liens – This document guarantees the property is free from encumbrances.
🔹 Hiring a real estate lawyer is highly recommended to conduct due diligence and protect your investment.
Step 4: Making an Offer & Signing the Promise of Sale
Once you find the right property, you’ll need to:
✅ Negotiate the Price – Unlike the U.S. or Europe, real estate prices are often negotiable.
✅ Sign the Promise of Sale ("Contrato de Promesa de Venta") – A legally binding contract that outlines:
Agreed purchase price
Payment terms & financing conditions
Deposit requirements (usually 10%)
Closing date & penalties for withdrawal
🔹 Once signed, the seller must remove the property from the market and cannot sell to another buyer.
Step 5: Closing the Deal & Transferring Ownership
At closing, the buyer will:
✅ Pay the remaining balance (via bank transfer).
✅ Pay property transfer taxes (3% of property value).
✅ Sign the final sales agreement (Contrato de Compraventa).
✅ Register the property at the Title Registry Office.
🔹 Once registered, you’ll receive the new title in your name, confirming full legal ownership.
Costs & Taxes When Buying Property in the Dominican Republic
🔹 Property Transfer Tax: 3% of property value (paid at closing).
🔹 Annual Property Tax (IPI): 1% for properties above DOP 8.1 million (~$140,000 USD).
🔹 Legal Fees: 1-1.5% of property value (for attorney services & due diligence).
⚡ CONFOTUR Tax Exemptions:
Some properties qualify for CONFOTUR incentives, offering 0% property taxes for up to 15 years!
Financing & Mortgage Options for Foreign Buyers
🔹 Can foreigners get mortgages in the DR?
Yes, but local banks require significant documentation, including proof of income, credit history, and residency status.
🔹 Alternative financing options:
✅ Seller financing (Owner financing)
✅ Developer pre-construction payment plans
✅ Using a U.S. or foreign bank loan
Investing in Rental & Airbnb Properties
🏡 High-demand areas for Airbnb & short-term rentals:
✔ Punta Cana – High occupancy rates due to tourism.
✔ Santo Domingo – Business travelers & long-term rentals.
✔ La Romana & Samaná – Luxury vacation rentals.
✅ Rental Yields: Short-term rentals generate 8-12% annual ROI in prime locations.
Next Steps
Buying property in the Dominican Republic is a straightforward and rewarding process, but working with professionals ensures a smooth transaction. Whether you're looking for a vacation home, investment property, or permanent residence, understanding the legal process, costs, and market trends will help you make an informed decision.
✅ Want expert guidance? Contact us today for personalized property assistance!