How do I buy real estate in the Dominican Republic?

The Dominican Republic is actually one of the more foreign-buyer-friendly countries in the Caribbean. There are no restrictions on foreign ownership, meaning you can buy property in your own name without a trust, corporation, or local partner. Here's the general process. First, find a reputable local real estate agent who specializes in working with foreign buyers in the area you're targeting. Popular spots like Punta Cana, Casa de Campo, Sosua, and Las Terrenas all have agents used to working with Americans and Canadians. Get referrals if you can, because the DR real estate market is less regulated than the US and not every agent operates the same way. Once you find a property, you'll sign a promise of sale agreement, which is similar to a purchase contract in the US. You'll typically put down 10 percent as a deposit at that point. Then the property goes through a title search to make sure the seller actually owns it and there are no liens or encumbrances. This step is critical because title issues in the DR are more common than in the US. Do not skip this. Closing is handled through a local attorney, not a title company. You'll pay the remaining balance, sign the deed, and your attorney will register the title transfer with the government. Registration and transfer taxes run about 3 percent of the assessed value, plus attorney fees, notary fees, and other closing costs that can add another 1 to 2 percent. A few things to watch out for. Always hire your own independent attorney, not one recommended by the seller or the developer. Make sure the property has a proper deslinde, which is a legal survey confirming the boundaries. If you're buying in a development or condo, verify that the developer has all the proper permits and that the project is legally registered. Financing through a Dominican bank is possible but rates are significantly higher than the US, often 9 to 12 percent. Most foreign buyers either pay cash or use US-based financing like a HELOC to fund the purchase. On the tax side, you'll owe annual property tax in the DR on properties valued over a certain threshold, and if you ever sell, there's a capital gains tax. You'll also need to report the foreign property on your US tax return. A cross-border tax advisor is worth the money. Barrett Henry Broker Associate | REALTOR® RE/MAX Collective · The NOW Team Tampa Bay, Florida nowtb.com

1. Begin Your Research: Learn as much as possible about Dominican real estate laws before you begin your search. Take the time to study legal and land transfer policies as well as taxes, fees and costs. 2. Choose an Area to Invest: When it comes to real estate, location matters. Research neighborhoods, compare price points and take your time to find the best area for your needs. 3. Research Companies & Brokers: Research the companies and brokers offering real estate services in the Dominican Republic. Make sure any you consider doing business with are properly licensed and experienced. 4. Choose a Property: Once you’ve identified a reliable company or broker to work with, it’s time to start looking for a property that meets your needs. Perform your own due diligence before making an offer. 5. Negotiate a Sales Contract: Work with your real estate agent to negotiate a sales contract ensuring all of your rights are protected. Have a qualified attorney review the document and make sure all details are included. 6. Transfer the Ownership Papers: Once the sales contract has been signed, it’s time to transfer the ownership papers to your name. A qualified attorney can help ensure the process is done properly. 7. Make Payment: Depending on the terms of the sales contract, you will need to make payment for the property at this point. Make sure all documents and payments are properly completed. 8. Enjoy Your New Property: Once all of the paperwork is complete and the ownership papers are transferred, you can enjoy your new property in the Dominican Republic!

Good news is foreigners can buy property in the DR with the same rights as locals. You do not need residency and there are no restrictions on ownership. Hire a Dominican real estate attorney before anything else. They will verify the title is clean, confirm the property is properly registered with the Title Registry, and handle the closing paperwork. This step is non-negotiable. Title issues are common and an attorney protects you. Closing costs typically run three to four percent of the purchase price and include transfer tax and legal fees. Financing through a local bank is difficult for foreigners so most vacation home buyers pay cash or finance through their home country. Work with a local agent who knows the specific area you are buying in. Markets like Punta Cana, Las Terrenas, and Cap Cana each have very different price dynamics and ownership considerations worth understanding before you commit.

Buying property in the Dominican Republic is fairly straightforward, and foreigners are generally allowed to own real estate there. The most important steps are working with a reputable local real estate agent, having a Dominican attorney review the title, and making sure the property has a clear title before closing. Most purchases are cash, although some developers offer financing on new construction. It’s also important to factor in closing costs, legal fees, and ongoing property management if it will be a vacation home. The key to a smooth purchase is having a knowledgeable local team guide you through the process and verify everything before funds are transferred.