Buying property in the Dominican Republic as a foreigner

Equal rights for foreign buyers

Foreigners face no restrictions on buying real estate in the Dominican Republic. According to international legal guides on Dominican property law, Decree 21-98 of January 1998 abolished the old requirement for prior presidential approval of foreign purchases; today the Title Registry Offices simply keep statistical records of sales to foreigners.

You do not need to live in the country, and there is no distinction between what a foreigner and a Dominican may own — houses, condos, land and commercial property are all open. Many buyers complete a purchase entirely on a tourist entry.

How title works: Law 108-05 and the Certificate of Title

Property registration is governed by Property Registry Law No. 108-05, in force since April 2007. Ownership is evidenced by a Certificate of Title issued by the Title Registry Office, and — crucially — ownership passes when the sale is recorded at the registry, not when the deed is signed.

Your lawyer's first job is a title search at the Registry of Titles to confirm the seller genuinely owns the property and that it is free of mortgages, liens, tenancy claims and boundary disputes. This search typically takes one to three weeks.

• Ask for a copy of the Certificate of Title before paying any deposit
• Have your lawyer confirm there are no encumbrances registered against the title
• Check that the seller's ID matches the registered owner exactly

The deslinde: why boundaries matter

Some Dominican properties are still held under a 'constancia anotada' — a certificate representing a share of a larger parcel without individually surveyed boundaries. A 'deslinde' is the judicial survey process that converts this into a fully demarcated, individually titled plot.

Prefer properties where the deslinde is already complete. If it is not, ask your lawyer whether completion of the deslinde can be made a condition of the purchase, and get local advice on cost and timing before committing. Rules and procedures can change, so confirm the current position with a Dominican property lawyer.

The buying process, step by step

Dominican purchases usually run through a binding promise of sale ('promesa de venta') followed by the final deed of sale ('contrato de compraventa') signed before a notary. Buyer guides from established Dominican brokerages describe a typical deposit of 5–10% held in a lawyer's escrow account while due diligence completes, with the whole process taking around 30–60 days for a clean title.

Budget for the 3% transfer tax (Law 288-04), calculated on the government-appraised value, plus legal fees commonly around 1–1.5% of the price (subject to 18% ITBIS, the Dominican VAT) and small registration costs. Once you own, an annual 1% property tax (IPI) applies to individually held property above a threshold the tax authority DGII adjusts each year for inflation.

• Sign nothing and transfer nothing until your own lawyer has searched the title
• Use escrow for deposits rather than paying the seller or agent directly
• Remember ownership only transfers when the sale is registered — follow up until the new Certificate of Title is issued in your name

Residency options if you plan to stay

You do not need residency to buy, but staying long term is a different matter: foreign nationals planning to remain beyond short tourist stays are expected to obtain residency status through the Dirección General de Migración.

The Dominican Republic also operates a long-standing incentive regime for retirees and people living on foreign income. The Ministry of Finance lists pensioners and foreign-source income earners among the categories entitled to exemption from the property transfer tax, and DGII guidance notes a 50% reduction in the annual property tax for qualifying pensioners and rentistas. Requirements and thresholds change, so check current rules with the migration authority or a Dominican immigration lawyer before planning around them. Habio's Dominican Republic listings and buyer guides are a useful starting point for comparing areas and prices.