Buying Real Estate in the Dominican Republic
A comprehensive guide for international investors
In the Dominican Republic, there are no restrictions for foreigners or Dominicans residing in other countries who wish to invest and buy real estate properties.
It is highly recommended to seek legal advice from a qualified real estate attorney before making any property purchase.
A lawyer can help you navigate the legal complexities and ensure a smooth transaction.
Key Advantages
No Restrictions
Foreign buyers have the same property rights as locals
Growing Market
Steady appreciation and rental opportunities
Legal Security
Clear title registration process
Key Benefits for Foreign Buyers
Equal Ownership Rights
Foreign investors enjoy the same property rights as Dominican citizens
Residence Options
Property ownership can lead to residency opportunities
Tax Advantages
Property tax exemptions for qualifying properties
Rental Income
Strong rental market, especially in tourist areas
Pre-Purchase Legal Process
Before buying a property, it is recommended that a lawyer investigates the legal status of the property. The buyer's legal representation ensures all documents are in order and the property has clear title.
Property Title
Official title certificate from the Land Registry
Land Survey Plan
Official survey plan showing boundaries and dimensions
Identity Documentation
Identity card or passport of the seller
Property Tax Certification
Certificate showing property tax status (IPI)
Company Documentation
Corporate documents if the seller is a company
Condominium Regulations
Rules and regulations if the property is part of a condominium
Key Advantages
Key Advantages
Century 21 Perdomo has experienced real estate attorneys who can guide you through the entire process, from initial due diligence to the final property transfer
Property Transfer Process
To transfer ownership of a property, the following steps are required:
Signing Sales Contract
Day 1The Sales Contract must be signed before a notary. If the seller is married, the spouse must also sign.
Property Appraisal
Day 7-14Obtain a property appraisal from the General Directorate of Internal Taxes (DGII) office.
Pay Transfer Taxes
Day 15-20Pay the 3% transfer tax based on the DGII appraisal value.
Submit Documents
Day 21-30Deposit the transfer contract, seller's Title Certificate, DGII documentation, and identification at the Land Registry Office.
Receive New Title
Day 31-45The Land Registry Office issues a new title certificate in the buyer's name.
Cost Breakdown
Understanding the costs involved in purchasing property:
Legal Fees
1% of the sale value (minimum US$1,000)
Transfer Tax
3% of the appraised property value
Misc. Expenses
Approximately US$250
Real Estate Commission
5-10% of the property value
Cost Calculator
For a precise calculation of all costs associated with your specific property purchase, consult with our real estate lawyer. The actual costs may vary based on property value, location, and other factors.
Tax Information
Transfer Taxes
The real estate transfer tax is 3% of the appraised value, plus US$250 for miscellaneous expenses.
Tax Calculation Example
Property value: $200,000
Transfer tax (3%): $6,000
Miscellaneous expenses: $250
Total transfer costs: $6,250
Inheritance of Properties by Foreigners
There are no restrictions for foreigners to inherit properties in the Dominican Republic.
Inheritance Tax Rates
Dominican Resident Heirs
3% for heirs residing in the Dominican Republic
Property value: $300,000
Inheritance tax (3%): $9,000
Foreign Resident Heirs
4.5% for beneficiaries residing outside the Dominican Republic
Property value: $300,000
Inheritance tax (4.5%): $13,500
Important Note: Inheritance tax is calculated based on the value of the property as assessed by the Dominican Republic tax authority (DGII) and not necessarily the market value.
Incorporation of a Company under Dominican Law
If you want to establish a Dominican company to manage a business or acquire properties, there are two main types:
Limited Liability Company (S.R.L.)
Capital Requirement
Minimum capital: RD$100,000.00
Partners
Minimum number of partners: 2, maximum: 50
Management
Only one Manager is required, who must be a natural person
Liability
The liability of each partner is limited to their contribution
Best For
- Medium-sized real estate investments
- Multiple investors or family members
- Business operations beyond property ownership
Sole Proprietorship Limited Liability Company (E.I.R.L.)
Capital Requirement
No minimum capital
Ownership
No partners, only one natural person, who is the owner
Management
The company is managed by its owner
Best For
- Single property investments
- Individual investors
- Simpler business structures
- Lower administrative complexity
Legal Assistance for Company Formation
Century 21 Perdomo works with experienced legal experts who can guide you through the process of forming a Dominican company for your real estate investments.
Frequently Asked Questions
Yes, foreigners can own beachfront property with the same rights as local citizens.
Have more questions? Contact our real estate attorneys for personalized assistance.
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