The Dominican Republic is one of the most active real estate markets in the Caribbean for foreign buyers, and the law requires neither residency nor a Dominican partner to acquire property. Being allowed to buy, however, does not mean buying without legal protection. This guide covers what every foreign buyer should know before signing.
1. No residency required, but due diligence is essential
Law 16-95 on Foreign Investment grants foreign investment the same treatment as domestic investment. You may buy, hold and sell real estate on the same terms as any Dominican. What the law does not do for you is confirm that the seller is the registered owner, that the property is free of mortgages and liens, and that the boundaries match the certificate of title. That is established through title due diligence before the Real Estate Jurisdiction, before you commit a single dollar.
We explain each step in our guide on how to verify a property title.
2. The process at a glance
It starts with an offer or letter of intent, followed by a purchase promise agreement setting the price, timeline and conditions. While due diligence is completed, we confirm the seller is current on the property tax (IPI). Closing takes place before a notary, in person or through a power of attorney if you cannot travel. The 3% transfer tax is then paid, unless an exemption applies, and the new title is registered in your name.
3. CONFOTUR can reduce your tax burden
If the property belongs to a project with a valid CONFOTUR classification under Law 158-01 on Tourism Development, you may qualify for an exemption from the transfer tax on the first acquisition and from the IPI, on the terms set by the law, its amendments and the project's classification resolution, for a period that can reach 15 years. Not every project marketed as "CONFOTUR" holds a valid approval that applies to your specific unit: verify it before you buy, not after.
4. Common mistakes we see among foreign buyers
- Signing a purchase promise without a condition precedent tied to the due diligence results.
- Paying a deposit that is not contractually protected if the deal falls through.
- Assuming a project enjoys CONFOTUR benefits because the developer says so, without independent verification.
- Closing without your own lawyer, relying only on the lawyer or notary appointed by the seller or the agency.
5. Technical verification and legal structuring
Two different jobs should be separated before signing: confirming the land or property is exactly what is promised (boundaries, permits, project feasibility) and structuring the purchase legally (contract, closing, registration). We work with Land Consulting DR on the technical side, while Cabinet Legal structures, negotiates and executes the purchase.
Frequently asked questions
Do I need to be a resident to buy property in the Dominican Republic?
No. Law 16-95 on Foreign Investment allows non-resident foreigners to buy, hold and sell real estate on the same terms as Dominicans.
Can I buy without traveling to the Dominican Republic?
Yes, through a special power of attorney granted to your lawyer, who represents you during due diligence, signing and the notarial closing.
Considering a property purchase in the Dominican Republic?
We review the title, the contract and the structure of the purchase before you sign, so you decide on verified information rather than on the seller's word.
