Title and Ownership Structure
How you hold title is a decision you make once.
The Dominican Republic places no restrictions on foreign ownership of real estate. A non-resident can hold a Casa de Campo® villa in personal name as easily as a Dominican citizen can. But the how of holding — the legal vehicle on the Certificate of Title — drives outcomes you cannot reverse later without paying transfer tax a second time.
The four practical options for a foreign buyer are personal name, a Dominican SRL, a Dominican SA, or a fideicomiso under Law 189-11. Each carries a different position on liability, succession, tax, and ongoing cost.
Personal name
Cheapest at closing. Exposes the villa to Dominican forced heirship and offers no liability shield. Works for smaller properties and buyers using the Law 171-07 first-property transfer-tax exemption. Most experienced buyers move away from it once they understand the succession and liability exposure.
SRL — the working default
Modest setup (~US$1,500–3,000) and modest annual cost (~US$800–2,000). Real liability protection, escapes forced heirship on the immovable, transfer by share sale instead of deed. The DR equivalent of an LLC under Law 479-08. The most common structure for foreign buyers at Casa de Campo®.
SA — the corporation
More formality than an SRL: minimum statutory capital of RD$30,000,000 (about US$510,000), board of directors, stricter corporate governance. Relevant for structures holding multiple properties, multiple investor classes, or positioned for later capital-markets activity. Almost always overkill for a single villa.
Fideicomiso
Dominican trust under Law 189-11, managed by a licensed fiduciary institution. Annual fees US$3,000–10,000+. Right vehicle for high-value holdings, multi-property structures, Article 9 asset-protection language, or trust-style succession control beyond what a will or share-transfer can deliver.
Forced heirship and the immovable trap.
The DR Civil Code splits every estate into the legítima (reserved for forced heirs) and the cuota disponible (freely-disposable). For real estate held in personal name, Dominican law applies regardless of the owner’s domicile or any foreign will. The escape is structural — change what enters the estate from immovable real estate to movable shares.
Immovable property = DR rule
The DR Civil Code treats real property located in the Dominican Republic as governed by Dominican law for succession (lex situs), regardless of the owner’s domicile. A foreign will leaving the villa to anyone other than the forced heirs is unenforceable on the Dominican real estate.
Reserved for forced heirs
Children are the primary forced heirs. The legítima increases with the number of children — roughly one-half if there is one child, two-thirds if there are two, three-quarters if there are three or more. Since 2024 the Constitutional Court extended forced-heirship protection to the surviving spouse as well.
Make the asset movable
Holding through an SRL or fideicomiso converts what enters the estate from immovable Dominican real estate to shares of a Dominican company or beneficial interest in a Dominican trust — both of which are movable property under DR conflict-of-laws rules and follow the deceased’s domicile for succession.
Your home-country rules don't disappear at closing.
The Dominican structure is only half the picture. The other half is how your home country taxes the same arrangement — and the answer differs sharply by passport. A structure that works elegantly from the Dominican side can fail from the home-country side. Both sides need to be designed together.
CFC, PFIC, FBAR
A Dominican SRL is a foreign corporation. If US persons own more than 50%, it is a Controlled Foreign Corporation. US persons owning 10%+ file Form 5471 annually (US$10,000 per year penalty for non-filing). Rental income above the passive threshold can trigger PFIC treatment. FBAR and FATCA reporting are likely. Design with US cross-border tax counsel from the outset.
CFA, T1135
Controlled Foreign Affiliate rules less aggressive than US CFC rules but conceptually similar. Form T1135 reporting required for specified foreign property over CAD$100,000 — almost every Casa de Campo® villa clears this threshold. Canadian residents are also subject to deemed-disposition rules at death; assess the Dominican structure in light of those rules, not in isolation.
Variable + Brussels IV
Treatment varies dramatically by member state. Germany, France, Italy, Spain apply their own CFC rules and may treat a controlled Dominican SRL as transparent. Brussels IV (Regulation 650/2012) lets an EU testator elect succession law of nationality — which can interact with Dominican lex situs in ways that require careful planning. Some EU jurisdictions impose wealth tax on net worldwide assets.
Promesa to Certificate of Title — what actually happens.
The Dominican closing process runs through five stages. Budget 6–8% of the registered purchase price in total closing costs: 3% transfer tax, 1–2% legal fees, plus notary and registry fees. A first-time Law 171-07 beneficiary purchasing in personal name avoids the 3% transfer tax — the largest single line item.
Promesa de Venta
A binding promise-of-sale agreement signed by buyer and seller. Typically carries a 10% deposit and locks the price, closing date, and any conditions — financing, title clearance, due-diligence period. The escrow deposit and the property lock both run from this signature.
Title search & due diligence
Your attorney pulls the Certificate of Title from the Registro de Títulos with jurisdiction over the property and confirms ownership, encumbrances, easements, IPI status, and any pending litigation. The DR uses a Torrens-style title system: the Certificate of Title is state-guaranteed and dispositive.
Acto de Venta
The final deed of sale, drafted by the attorney and signed before a Dominican Notario Público. The notary verifies identity, witnesses signatures, and certifies the document. Possession transfers at this signature.
Promesa to Certificate of Title — what actually happens.
The Dominican closing process runs through five stages. Budget 6–8% of the registered purchase price in total closing costs: 3% transfer tax, 1–2% legal fees, plus notary and registry fees. A first-time Law 171-07 beneficiary purchasing in personal name avoids the 3% transfer tax — the largest single line item.
Tax & registration
The buyer pays the 3% transfer tax to the DGII within six months of the Acto de Venta. The Acto plus tax-payment proof is filed at the Registro de Títulos, which issues a new Certificate of Title in the buyer’s name (or the SRL/SA/fideicomiso). Issuance typically takes two to six weeks.
Buying through an SRL
The SRL must exist before the Acto de Venta is signed — three to five weeks of formation work running in parallel with title due diligence. Funds enter a Dominican bank account in the SRL’s name (not the individual’s), and the Acto names the SRL as buyer. Done correctly, the SRL appears on the Certificate from day one — no second transfer, no second transfer tax.
Ownership structure — candidly.
Does the Dominican Republic limit foreign ownership of real estate?
No. Foreign individuals and foreign entities have the same property-ownership rights as Dominican nationals. There are no nationality restrictions, no zoned exclusions for foreigners in private resorts, and no residency requirement.
Can I change the holding structure after closing?
Yes, but at a cost. Transferring the property from personal name into an SRL after closing triggers a second 3% transfer tax on the appraised value at the time of transfer, plus new closing costs. The cleanest path is to choose the structure before the Acto de Venta is signed.
How long does it take to form an SRL?
Three to five weeks from instruction to RNC (tax ID) and Chamber of Commerce certificate, assuming all founder documents (passport copies, sample signatures, proof of address) arrive on schedule.
Does an SRL forfeit the Law 171-07 transfer-tax exemption?
Yes. The Law 171-07 first-property transfer-tax exemption is granted to the individual investor, not to an entity. Buying through an SRL means paying the full 3% transfer tax at closing. Many buyers above US$1M still prefer the SRL because the long-term liability, succession, and resale benefits outweigh the one-time 3%; for buyers near the US$200K threshold, the exemption math sometimes favors personal name.
Will a will from my home country control my Casa de Campo® villa?
Only if the villa is held through a structure that converts it into movable property under Dominican conflict-of-laws rules — typically an SRL, SA, or fideicomiso. A villa held in personal name is governed by Dominican forced-heirship rules regardless of any foreign will.
Do I need a Dominican bank account?
For SRL ownership, yes — the SRL must hold an operating account in the Dominican Republic. For personal-name ownership, a Dominican account is convenient but not strictly required if you can document the wire trail of purchase funds.
Is a Dominican attorney mandatory at closing?
Not technically mandatory, but operationally essential. The title search, structure formation, tax payment, and registry filing all run through a licensed Dominican attorney in practice. Buying without one is a category of avoidable risk no Casa de Campo® buyer should accept.
What happens to the SRL if I want to sell to a buyer who wants the property in personal name?
Two paths. Path one: sell the property out of the SRL to the buyer personally — a normal Acto de Venta, normal 3% transfer tax. Path two: sell the SRL itself (the shares), leaving the property inside — the buyer steps into the entity. Path two is increasingly scrutinized by DR tax authorities and requires current counsel.
Not legal advice — and who to retain.
The information on this page is summary guidance compiled from publicly available Dominican law — the Civil Code, General Companies Law (479-08), Trusts Law (189-11), Law 171-07, and current practice at the Registro de Títulos and DGII. It is not legal advice and should not be relied on as legal advice. Dominican corporate, succession, tax, and real-estate law changes; individual circumstances vary materially; and the correct structure for any one buyer depends on facts a brokerage is not qualified to assess.
Two professionals you should retain before choosing a structure:
A Dominican corporate and real-estate attorney admitted in the Dominican Republic, to design and form the structure (SRL, SA, or fideicomiso), handle CEI-RD registration where Law 171-07 status is involved, and run the closing through the Notario, DGII, and Registro de Títulos.
A home-country cross-border tax advisor who specializes in international taxation, to assess how a Dominican entity interacts with your home-country tax position — CFC, PFIC, and FBAR/FATCA exposure for US buyers; CFA and T1135 exposure for Canadian buyers; CFC and Brussels IV interaction for European buyers.
Talk through the right structure for your purchase.
Before you sign the Promesa de Venta, the structure conversation is worth a half-hour. We will walk you through the trade-offs for your specific situation — single villa or portfolio, US or EU or Canadian passport, residency goal or pure investment — and introduce you to Dominican counsel who can form the entity in time for closing.
An independent buyer’s guide to real estate at Casa de Campo®. Operated by Caribbean Paradise Homes — at the resort since 2003, and ready to help you find and buy your home here.
© 2003–2026 Villas in Casa by Caribbean Paradise Homes SRL
Casa de Campo® Resort & Villas is a registered trademark of Costasur Dominicana, S.A. Villas in Casa by Caribbean Paradise Homes SRL is an independent real estate agency and is not affiliated with or endorsed by Costasur Dominicana, S.A. The information on this site is based upon information which we consider reliable. We can not represent that it is accurate or complete, and it should not be relied upon as such. The selling price and offerings are subject to errors, omissions, changes, including price, or withdrawal without notice.