What are the legal requirements to buy property in the Dominican Republic?

Investment Opportunity in the Dominican Republic

Buying property in the Dominican Republic is an exciting opportunity, whether you're an investor, a future retiree, or simply looking for a vacation home. Fortunately, the legal process for purchasing real estate here is straightforward, and the Dominican Republic is one of the most welcoming countries in the Caribbean for foreign buyers.

1. Can foreigners buy property in the Dominican Republic?

Yes, absolutely. There are no restrictions on foreigners owning property in the Dominican Republic. You do not need to be a citizen or resident. Foreign buyers enjoy the same rights as locals, and the title can be held in your name or in the name of a company (such as an LLC or SRL).

2. Title Verification and Due Diligence

One of the first and most important steps in the property-buying process is title verification. This ensures the seller has a clean and legal title to the property. It’s standard practice to hire a reputable real estate attorney to conduct the necessary due diligence, including:

Verifying the title is free of liens and encumbrances

Ensuring the seller is the rightful owner

Reviewing property boundaries and relevant documents

3. Sales Agreement and Deposit

Once you’ve agreed on a price, your attorney will draft a Promise of Sale (Promesa de Venta), which outlines all terms and conditions of the purchase. This agreement is typically signed with a 10% deposit, which is held in escrow.

4. Final Contract (Contrato de Venta Definitiva)

The final contract is signed by both parties in front of a notary public. This is the legally binding document that transfers ownership from seller to buyer. Once signed, it’s submitted to the Title Registry Office to register the new owner. This is when the final payment is also made so that the property is now legally yours!

5. Closing Costs and Taxes

Buyers are responsible for the following closing costs:

Transfer Tax: 3% of the government-assessed value (This is the one time tax to transfer the title into your name!)

Legal Fees: Usually 1 - 1.5% of the property value (varies by attorney)

6. Financing and Mortgages

While most transactions are cash (bank transfers), foreigners (even non-residents) can get financing through select Dominican banks.

Mortgage terms are generally:

20% to 40% down payment

Interest rates between 6% to 9%

Loan terms up to 20 years

If you choose to purchase a unit that in under construction, developers offer an interest free payment plan during construction- this gives you time- interest free- to pay off your investment without having to work with a bank!

We at Tropical Realty can connect you with banking partners who are open to working with foreign buyers. Ask us about options today!

7. Hire a Local Expert

To protect your investment, it’s crucial to work with a licensed real estate professional and a trusted lawyer who understands the local market and legal process.

8. Start Your Search with Tropical Realty

To begin your journey, visit our listings at www.tropicalrealtydr.com. We showcase the best properties for sale in Bayahibe, Dominicus, and the surrounding areas. We also have an FAQ section and blog to help you learn more.

For virtual tours, local lifestyle videos, and real-time market updates, follow us on Instagram @tropicalrealtydr and subscribe to our YouTube channel www.YouTube.com/@meganalfonseca.

Ready to get started? Let us help you find your dream home or investment property in paradise!