The short answer: yes, foreigners can buy and own real estate in the Dominican Republic with the same rights as Dominican citizens. No special permits, no required local partner, no restrictions on ownership type, and no limits on how long you can hold or how you can sell. It’s one of the most foreigner-friendly real estate jurisdictions in the Caribbean.
The longer answer — and the one that matters before you sign anything — is that the DR’s legal framework, while clear, is procedurally specific. This guide explains how foreign ownership actually works, what the purchase process looks like step by step, and what you need to know to protect yourself.
The Legal Framework: Two Laws You Should Know
Dominican real estate law for foreign buyers rests on two pieces of legislation:
Law 16-95 (Law on Foreign Investment)
Passed in 1995, Law 16-95 explicitly grants foreign nationals and foreign-owned companies the same rights as Dominicans to invest in and own real estate. It eliminated nearly all of the historical restrictions on foreign ownership that had existed in earlier laws. Practically, this means:
- You can buy in your personal name as a foreigner.
- You can buy through a foreign corporation.
- You can buy through a Dominican corporation (SRL).
- You don’t need residency, citizenship, or a local partner.
- You hold full freehold rights — you own the land, not a leasehold.
Property Registry Law 108-05
Passed in 2005, Law 108-05 modernized the Dominican title system. Before 108-05, the country relied on a fragmented set of older registries that produced inconsistent records and significant title disputes. Law 108-05 created the Sistema Nacional de Registro Inmobiliario and the modern Certificado de Título — a government-issued certificate that records ownership and any liens, mortgages, or annotations against a property.
The result: when you buy property correctly today, you receive a state-guaranteed title document. The title is your protection. Older properties may still be in transition between the pre-2005 and post-2005 systems, which is one of the reasons due diligence matters.
The Purchase Process for Foreign Buyers
The process from offer to registered title typically runs 45 to 90 days. The phases:
1. Choose Your Attorney
This is your first and most important decision. You want a Dominican attorney independent of the seller and the listing broker — someone whose only client is you. Most law firms experienced with foreign buyers charge 1% to 1.5% of the purchase price, sometimes with a floor for smaller transactions.
The attorney’s job is to verify the title, draft and review contracts, manage the escrow, attend the closing, and file with the registry. Cheaper isn’t better here. We can refer attorneys we’ve worked with on dozens of closings if you don’t have one.
2. Sign the Promesa de Venta (Promise of Sale)
Once you and the seller agree on price and terms, your attorney drafts the Promesa de Venta. This is a binding bilateral contract that:
- Identifies the property by its title number (Designación Catastral)
- States the purchase price and currency
- Lists what’s included (furniture, vehicles, club memberships, art)
- Sets the closing date and deadline
- Establishes the deposit and where it’s held in escrow
- Outlines penalties if either party defaults
A 10% deposit is standard, paid into your attorney’s escrow account — never directly to the seller.
3. Due Diligence
The 2 to 4 weeks between the Promesa de Venta and final closing is where your attorney does the work that protects you. The checklist:
- Pull the current Certificado de Título and verify the seller is the registered owner
- Search for liens, mortgages, judicial annotations, or embargoes against the property
- Confirm property tax (IPI) is paid current
- Confirm HOA / resort dues are paid current
- Verify boundaries match the registered deslinde (surveyed plot plan)
- Check for outstanding utility liabilities
- Confirm there are no pending lawsuits affecting title
- Verify the seller has the legal capacity to sell (marital, corporate, succession status)
If any issue emerges, your attorney negotiates a cure or you walk away with your deposit returned. The Promesa de Venta should contain the language enabling that.
4. Closing on the Final Deed
The Contrato de Venta Definitivo is signed in front of a Dominican Notario Público. Both parties (or their representatives via power of attorney) sign, the notary authenticates, the balance is wired into escrow and released to the seller, and you receive the keys.
Many foreign buyers close remotely by granting power of attorney to their Dominican attorney. This is straightforward — your home-country notary or apostille service authenticates the POA, and your attorney signs on your behalf.
5. Registration and New Title
Within days of closing, your attorney files the signed deed and supporting documents with the Registro de Títulos. The 3% transfer tax must be paid before registration. Six to twelve weeks later, the registry issues your own Certificado de Título in your name.
You legally own the property from the moment the deed is signed in front of the notary — but the public record reflects the change on the government’s timeline.
What Closing Actually Costs
Plan for 4.5% to 6% of the purchase price in closing costs on top of the price itself. The breakdown:
- Transfer tax (Impuesto de Transferencia): 3% of the registered sale value, paid to the Dominican government before the title can be re-registered.
- Attorney fees: typically 1% to 1.5%, with discounts on larger transactions.
- Notary fees: 0.25% to 0.5% depending on the notary.
- Registration and stamps: approximately 0.25%.
- Title insurance (optional but recommended): 0.5% to 1% one-time premium. First American Title and Stewart Title both write policies on DR properties.
- Survey or boundary updates (if needed): variable.
- Bank wire and currency conversion costs: small but real.
If the property is inside a private community like Casa de Campo, there’s also typically a one-time HOA transfer fee charged by the community, separate from the government transfer tax.
Title Insurance: Why It’s Worth Considering
DR titles are reliable when correctly verified by a competent attorney, but they are not infallible. The pre-2005 system had occasional anomalies that can resurface. Title insurance — written in U.S. dollars by U.S.-based underwriters — provides a one-time premium policy that protects you against any title defect not discovered at closing.
For a first DR purchase, it’s almost always worth the cost. For sophisticated buyers acquiring multiple properties or working with attorneys who have a long history with the specific community, it becomes a judgment call.
Why You Should Never Use the Seller’s Attorney
This is the single most common preventable mistake foreign buyers make. The seller’s attorney has a fiduciary duty to the seller. They cannot also represent you. The conflict of interest is structural, not personal — even an honest attorney cannot prosecute due diligence aggressively against their own client.
Hire independent counsel. Pay the extra 1%. It’s the cheapest insurance you’ll ever buy on a real estate transaction.
Common Pitfalls Foreign Buyers Encounter
- Wiring funds before the deed is signed. Funds belong in your attorney’s escrow account until the deed is in front of the notary. Never wire directly to a seller or broker before closing.
- Skipping the title search. “The seller is a friend of a friend” is not a substitute for a registry search. Always pull the title.
- Assuming verbal disclosures are binding. Anything not in the written Promesa de Venta and final deed has no legal force. If the seller promises to leave the furniture, it must be on paper.
- Underestimating closing costs. Budget 5% to 6% of the price, not 1% or 2%.
- Ignoring the deslinde. Older properties sometimes have boundary discrepancies between the title and the physical property. Verify before closing.
Residency by Investment
The Dominican Republic offers a fast-track residency program for foreign real estate investors under Law 171-07. The thresholds:
- Buy property valued at US$200,000 or more → eligible for permanent residency
- Hold the property and maintain residency in good standing → eligible for citizenship after 2 years
The application typically takes 30 to 60 days and doesn’t require you to physically relocate. Many international Casa de Campo buyers pursue residency for tax flexibility, banking access, and ease of travel in and out of the country. The residency is yours; if you ever sell the property, the residency continues separately.
Should You Buy in Your Personal Name or Through a Company?
Both are common. There’s no universally correct answer. The decision usually comes down to estate planning, tax treatment in your home country, and asset protection preferences.
- Personal name: Simplest. Lowest cost. Estate transfers go through Dominican succession process (which can be slow without planning).
- Foreign company (LLC, etc.): Often used by U.S. buyers for liability and estate-planning reasons. Pre-existing entity, fewer setup steps.
- Dominican SRL: Common for buyers who plan multiple DR investments, want clean separation, or want to take advantage of certain Dominican tax structures.
Talk to your attorney AND a tax advisor in your home country before deciding. The optimal structure depends on factors specific to your jurisdiction.
How to Get Started
If you’re seriously considering buying in the Dominican Republic — whether in Casa de Campo or elsewhere — the practical first step is a conversation with a buyer’s agent who works exclusively for buyers, not for sellers or developers.
We’ve represented international buyers across hundreds of DR closings since 2008. Schedule a consultation or email info@caribbeanparadisehomes.com and we’ll walk through your situation, recommend attorneys, and map a realistic timeline.
Frequently Asked Questions
Do I need to be a U.S. citizen, Canadian citizen, or EU citizen to buy property in the DR?
No. Citizens of any country can buy property in the Dominican Republic with the same rights. Law 16-95 does not discriminate by nationality.
Do I need Dominican residency to buy?
No. Residency is not required to own property. Many international buyers own in the DR for years before applying for residency — and many never apply at all.
How long does the buying process take?
From accepted offer to registered title, 45 to 90 days is typical. You take possession at closing (around day 45 to 60); the registered title in your name arrives 6 to 12 weeks after closing.
What if I can’t travel to the Dominican Republic to close?
You can close remotely by granting power of attorney to your Dominican attorney. The POA is authenticated by a notary or apostille service in your home country and recognized in the DR.
Are there annual property taxes I need to pay as a foreign owner?
Yes — the IPI (Impuesto al Patrimonio Inmobiliario), assessed at 1% per year on the portion of the registered value above approximately RD$9.86 million (the threshold is adjusted annually for inflation). Below the threshold, no IPI is owed.
What happens to my property if I die owning it?
Dominican succession law applies. If you’ve planned (will, foreign company, trust, life-interest arrangements), the transfer can be straightforward. If you haven’t planned, it can take 12 to 24 months and require court involvement. This is one of the strongest reasons to consult with both Dominican and home-country counsel before closing.
Caribbean Paradise Homes is a licensed real estate brokerage based in Casa de Campo, La Romana. We exclusively represent buyers. For a consultation, contact us at info@caribbeanparadisehomes.com.
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