Buying property in the DR.

1. Can foreigners own property in the Dominican Republic?

Yes — and it's one of the most foreigner-friendly ownership regimes in the Caribbean. There are no restrictions on foreign ownership of any property type, including beachfront and waterfront land. Foreigners hold the same property rights as Dominican citizens. You can own in your own name, in a Dominican corporation (SRL or EIRL), or in an offshore vehicle.

The most common structures for buyers are:

• Personal name — simplest, lowest cost. Works for most personal-use buyers.
• Dominican SRL — useful for liability shielding and to streamline ownership transfers (you sell the company instead of re-titling the property). About $1,500–2,500 to set up. Common for investors and rental owners.
• Offshore corporation (e.g., BVI, Belize) — used by some high-net-worth buyers for asset planning. More setup cost; more complex ongoing reporting.

Talk to your attorney about which fits your situation. A good Dominican real estate attorney will give you the trade-offs in your first 30-minute call.

2. Understanding title — what "deslinde" really means

The single most important word in Dominican real estate is deslinde. It refers to the modern, GPS-surveyed property registration system that replaced the older, ambiguous land registry. A property with completed deslinde has clearly defined boundaries, a unique parcel number, and clean modern title — what's called a Certificado de Título (CT) or sometimes a Constancia Anotada in transition cases.

Your attorney's job is to verify all of this before you wire the deposit. They'll pull the title from the Registro de Títulos, check for liens and encumbrances, confirm property tax payments are current, verify the seller's right to convey, and confirm the deslinde is in order. Budget $800–1,500 for a thorough title search depending on complexity. It's the best money you'll spend on the entire purchase.

3. The 7-step buying process

Most DR purchases follow a similar arc, taking 30–90 days from accepted offer to keys in hand:

Step 1 — Offer and acceptance (Day 0)

You agree on price and terms with the seller. We help you structure the offer. Typically a non-binding letter of intent or a binding offer with a small deposit ($1,000–5,000) to take the property off the market.

Step 2 — Engage your attorney (Day 1–7)

You hire a Dominican attorney — independent from the seller and from the broker. We can introduce you to two or three vetted ones; you pick. The attorney begins the title search and due diligence.

Step 3 — Due diligence (Day 7–21)

Title verified, deslinde confirmed, taxes verified current, building permits checked (for new construction), HOA status confirmed. If anything is amiss, you have the option to walk and recover your deposit.

Step 4 — Promise of sale (Day 21–30)

You and the seller sign the Promesa de Venta (Promise of Sale) — a binding contract specifying price, terms, and closing date. Typically you put down 10% earnest money at this stage.

Step 5 — Funds transfer (Day 30–60)

You wire the balance to your attorney's escrow account or directly per the contract. Most DR deals are cash; financing exists but is rare for foreigners (see below).

Step 6 — Closing and title transfer (Day 60–75)

You and the seller (or representatives via power of attorney) sign the deed of sale. Documents are notarized. Your attorney files the transfer with the Registro de Títulos.

Step 7 — New title issued (Day 75–90)

The Registro issues your new Certificado de Título in your name. You're officially the owner.

4. Closing costs and taxes

Budget approximately 4–5% of the purchase price for total closing costs. Breakdown:

• Property transfer tax (3% of cadastral value) — paid to the DGII (tax authority). Cadastral value is typically lower than market price, so the effective rate is often 2–2.5% of purchase price.
• Notary and registration fees (1–1.5%) — for executing and recording the deed.
• Attorney fees (1–1.5%) — for title search, due diligence, contract negotiation, and closing. Some attorneys charge a flat fee; others charge a percentage.
• Title insurance (optional, ~0.5%) — increasingly common, especially for higher-value purchases. Stewart Title and First American both operate in the DR.

5. Ongoing taxes after you own

Property tax in the DR is called IPI (Impuesto sobre la Propiedad Inmobiliaria). The rules:

• Annual tax of 1% on the property value above the exemption threshold (~RD$10 million as of 2026, roughly $170k USD — verify current threshold with your attorney).
• Properties under the threshold pay nothing.
• For properties owned by Dominican corporations, the threshold doesn't apply — 1% is owed on full assessed value.
• Pensioners and retirees can sometimes qualify for a 50% discount under the Pensionado/Rentista program.

If you rent the property out, rental income is subject to Dominican income tax (graduated rates) and 18% ITBIS on short-term rentals (Airbnb-style). Long-term residential rentals are typically ITBIS-exempt. Your attorney or accountant will set up the right structure.

6. Financing — possible but mostly cash

Most DR foreign-buyer purchases are cash transactions. Financing exists but is uncommon for non-resident foreigners:

• Dominican bank mortgages for non-residents — possible at 2–3 select banks (Scotiabank, Banco Popular have programs), typically 50–60% LTV, 7–9% interest, 15-year max. Heavy paperwork.
• Seller financing — surprisingly common, especially with developers. Often 30–50% down, 5–10 year term, 6–8% interest. Negotiable.
• Home-equity from your home country — many US/Canadian buyers refinance their primary home and bring cash. Cleanest option if your home country rates are favorable.

7. Common mistakes we help foreign buyers avoid

• Skipping the deslinde verification. Don't assume the seller's documents tell the full story. Always pull the title independently.
• Using the seller's attorney. Your interests and the seller's are not the same. Hire your own.
• Wiring funds before closing. All money should sit in a verified escrow until the deed is signed and the transfer is filed.
• Buying in the wrong neighborhood for your goals. A condo that crushes Airbnb in central Cabarete won't generate the same yield in El Batey. A retirement villa in Costambar isn't a quick flip. Buy what your goal actually requires.
• Not budgeting for the full closing cost. 4–5% on top of the price is real. Factor it into your offer.
• Skipping the building inspection. Especially on older condos. We can recommend two engineers who do this well.