How property sale is regulated by law? How many taxes do foreigner pay? Do buyers need a notary? What are the basic steps of buying property in the Dominican Republic? Read the most important information for future property owners in the Dominican Republic in this article.
Why should you buy property in the Dominican Republic?
In 2020, the Dominican Republic felt the impact of the pandemic. Since then the state has done a lot to restore the economy. The country has been open to foreigners since July 2020, before the introduction of vaccinations against COVID-19. The entry rules were favorable, and now the country is very counting on tourists.
Tourism is generally one of the main sectors of the Dominican economy, and the past year has been generally successful for it. The number of air ticket bookings in 2021 was more than in pre-pandemic 2019, but the total tourist flow was still less.
The authorities also announced a plan to support foreign investors in 2020. Strict compliance with laws, increased transparency, and shorter decision-making time became the main priorities. Foreign interest for local property returned to a high level the same year. Increased activity persisted in 2021 and still goes on.
The rights of foreign buyers
In 1998, the Dominican Republic lifted all restrictions on the property sale to foreigners. Since then, buyers from other countries have started to appear on the market. Now all property transactions are registered based on Law No. 108-05 of April 4, 2007.
A foreigner as an individual or a legal entity can own any property in this Caribbean country: an apartment, a villa, an undeveloped plot, or a commercial property. Non-residents have the same rights to purchase as citizens, but they need to make an entry in the State Register of Rights to Purchase Real Estate by foreigners when concluding a transaction. The only one restriction is specially protected areas, such as national parks.
Also note: you are not obligated to hire a realtor, but it’s better to rely on professional help if you are not familial with local legislation.
Real estate for sale in the Dominican Republic:
5 614 743 €
Villa in Punta Cana, Dominican Republic
1803 sq.m666
Luxury in all of its standard, in the most exclusive place in the whole Dominican Republic, 6 bedrooms villa with huge space, huge living room, huge kitchen and yard, huge pool and private jacuzzi, private key to park your Yath right in the marina, then take your yatch and go to your private beach couple of meters away. Parking that an take 6, 7...
Habita International Estates Ltd
467 973 €
House in Punta Cana, Dominican Republic
305 sq.m444
Amazing 4 bedrooms house, 1 room downstairs for your convenient when aging, and 3 bedrooms upstairs. It is located next to Cap Cana and with a membership, you can have access to the Juanillo beach and all the amenities of Cap Cana. It is a gated community, with security 24/7, about 7 minutes to the airport, 4 to 5 minutes to the beach (drive)
Habita International Estates Ltd
477 333 €
Villa in Cabarete, Dominican Republic
175 sq.m544
Online ViewingRemote Transaction
Luminous Beachfront Villa just steps away from the main street and the beach. This house has an unbeatable luminosity due to its numerous windows all over the perimeter. The house features a very large and modern living room, dining area and fully equipped open kitchen with a breakfast bar. The main room has a private bathroom and faces the...
Atlantico Caribe
795 555 €
Villa in Cabarete, Dominican Republic
457 sq.m543
Online ViewingRemote Transaction
A beautiful new life awaits you in the Dominican Republic. Turn-key and ready to move in, this recently renovated home comes beautifully furnished and poised for a new owner.
This graciously styled villa offers a remodeled and updated kitchen, new windows, and new ceramic floors throughout the house. A single-story home, Villa Azurre has an...
Atlantico Caribe
224 627 €
House in Sosua, Dominican Republic
160 sq.m523
Online ViewingRemote Transaction
This Popular community is located in the center of Sosua with 24 hour security. The house has 2 kitchens, 2 living rooms, 2 bedrooms and 3 bathrooms. Can be used for 2 families or rent out part of the house.
house size 160 m2, Lot size 500 m2
Atlantico Caribe
257 385 €
House in Punta Cana, Dominican Republic
170 sq.m433
Amazing affordable three bedrooms house in the heart of Punta Cana, 10 minutes to the beach, 8 minutes to Down town Punta Cana where you have all of the banks, movie theater, restaurants, malls, 16 minutes to the airport, with private pool, walk-in-closet, in a gated community of only 12 houses, with security 24/7. This house is in...
Habita International Estates Ltd
542 849 €
Apartment in Cap Cana, Dominican Republic
319 sq.m332
Penthouse, 6th floor 2 bedrooms + family room, incredible view. Located in one of the most exclusive and spectacular area in the Dominican Republic, Cap Cana. Its just a few steps of distance from Juanillo Beach and in front of holes 7 and 8 of the Course of Golf de las Iguanas, designed by the famous Jack Nicklaus. Wave Garden offers you...
Habita International Estates Ltd
7 487 572 €
Villa in Cap Cana, Dominican Republic
2991 sq.m879
This magnificent property is located next to Caleton Beach Club and Eden Roc hotel, on natural height, with breathtaking panoramic views of Atlantic Ocean. It is part of privileged Golf Founders community inside Cap Cana Resort. The main building is designed in contemporary style with spacious social areas anda has 7 bedrooms, 9 bathrooms,...
Habita International Estates Ltd
1 544 312 €
House in the Dominican Republic
800 sq.m7610
High end luxurious house at the heart of Down Town Santo Domingo, where you can barely find a villa but towers, one of the best areas where most embassies are, and government officials live, very secured area and beautiful. If you have a real sense of luxury and love being in the capital, this house is for you! Your private movie theather home,...
Habita International Estates Ltd
1 497 514 €
Apartment in Bayahibe, Dominican Republic
278 sq.m433
Beautiful 3 bedroom, 3 baths, 4th floor to dominate the beautiful caribbean ocean and the white sand smooth beach. Very good amenities to enjoy a 5 star hotel style propert, with lobby, restaurant, bar, infinity pool, solarium and the beach right in front, open your door and let your spirit go away, inhale the peace inside of you, cause life can...
Habita International Estates Ltd
491 372 €
House in Puerto Plata, Dominican Republic
372 sq.m755
This house is one of the kind, that gives you an incredible ocean and mountain view, only 5 minutes drive to the beach. It's in a gated community where there are some of the most beautiful mansions. It has 3 storey and a terrace where you can enjoy the mountain and a 360 degree view of the ocean, seeing the cruises passing by as well. Very good...
Habita International Estates Ltd
818 953 €
Villa in Cabarete, Dominican Republic
650 sq.m644
ResidenceOnline ViewingRemote Transaction
Live the island dream at Casa Deborah, nestled in the captivating landscapes of the Cabarete region in the Dominican Republic. This exceptional residence, located within the esteemed gated resort , unveils a lifestyle of refined luxury and Caribbean tranquility.
With four spacious bedrooms and four thoughtfully designed bathrooms, this...
Atlantico Caribe
2 293 069 €
Villa in Cabarete, Dominican Republic
432 sq.m866
Residence
Villa Sunset – Modern Tropical Splendor
Welcome to Villa Sunset a design masterpiece that harmoniously combines tropical elegance with modern luxury. This exceptional 6-bedroom, 6-bathroom haven resides within the prestigious gated resort in Cabarete, Dominican Republic. Every facet of this residence reflects modern sophistication, from...
project with excellent amenities, in the most exclusive community of Bávaro Punta Cana, Cocotal Golf & Country Club.!!
-24 Elegant 2 and 3 bedroom apartments, all with beautiful views of the golf course
-3-level buildings with elevator.
-First levels with swim-up and penthouses with private terrace.
-Private pool.
-All...
Atlantico Caribe
706 640 €
Villa in Sosua, Dominican Republic
318 sq.m544
The front of the house is decorated with a magnificent waterfall that makes the entrance of this villa absolutely unique and magnificent. Tropical garden, big parking area. The upper floor with the main entrance offers 3 bedrooms with each its modern bathroom en-suite, AC inverter and imported furniture. By a spiral staircase, with railings in...
Habita International Estates Ltd
257 385 €
House in Punta Cana, Dominican Republic
170 sq.m433
Amazing affordable three bedrooms house in the heart of Punta Cana, 10 minutes to the beach, 8 minutes to Down town Punta Cana where you have all of the banks, movie theater, restaurants, malls, 16 minutes to the airport, with private pool, walk-in-closet, in a gated community of only 12 houses, with security 24/7. This house is in...
A new project on the Caribbean coast has started its construction in Bayahibe, next to La Romana airport.
It is perhaps the most innovative project in the Caribbean. The architectural style of the project is a fusion of Caribbean and European styles not only in the architecture but also in the materials used. For example, the exterior will...
Atlantico Caribe
373 443 €
House in Cabarete, Dominican Republic
250 sq.m433
Kite Beach in Cabarete is world renowned for spectacular kite and windsurfing conditions. It attracts some of the world’s best surfing competitions and pros like Adueri Corniel and Luis Alberto. The reef creates strong waves on the outside and flatter water inside, which makes learning to kite surf here much easier for beginners. There are lots...
New apartments in Bavaro are located in the residence only 400 m to the beach.
Now the 2nd stage of construction begins. The first stage has already been built and all apartments have been sold. This is because the residence has an excellent location, close to the main highway. Besides, the apartments have a thoughtful design of premises in...
Atlantico Caribe
140 205 €
Apartment in Punta Cana, Dominican Republic
67 sq.m212
Welcome to your dream coastal retreat! Santa María Del Mar. 1-bedroom, 2-bathroom condo offers 850 square feet of luxurious living space, updated with modern fixtures and appliances. Nestled just two blocks away from the pristine shores of Bávaro Beach in the enchanting Punta Cana. Step inside featuring a spacious open-concept design that...
What are the basic steps in property purchase in the Dominican Republic?
Step 1. Reservation the property
After choosing the property, both the seller and the buyer go to the notary to agree with the intent. You must make a deposit at this stage, usually up to 10% of the price.
The agreement of intent must contain:
data of the seller and the buyer;
description of the property;
cost and terms of payment;
obligations of the parties (for example, the obligation of the seller to sign the final contract after the transfer of the entire amount).
The notary will need two to three weeks for due diligence.
Please note!
The notary is the guarantor of the legality of the transaction, who also collects and verifies all property documents.
Each property has a title and a legal status certificate, which reflects the entire history of the change of rights.
The notary also calculates all possible taxes and fees, prepares a contract of sale, and receives a certificate of ownership.
Step 2. Conclusion of the purchase contract
The purchase and sale agreement is concluded for the whole value or a "promise of sale" agreement if the buyer needs installments.
That document must be signed in the presence of a Dominican notary. If the buyer cannot attend the transaction, they can sign documents by proxy with a power of attorney.
Step 3. The grand finale
The Dominican Republic does not prohibit paying for real estate in cash. But the buyer's home state might have restrictions on the currency export. It is easier to use bank transfers.
You can transfer funds directly to the seller or notary, who will forward them to the seller through their bank accounts.
The final contract of sale is submitted to the General Directorate for Internal Taxes and Fees.
Step 4. Property transfer tax
Transfer property tax is 3% of the estimated property value which is lower than the market value.
The Dominican Republic is known as a country with low taxes, and property transactions are no exception. Here, the buyer pays much less over the price of the property than in the USA or Europe. As a rule, 4.5–5.5% of the value of the property, in difficult cases – up to 8%.
Tax on the transfer of ownership of a real estate
Locals and foreigners pay the same tax for purchasing property in the Dominican Republic – 3% of the estimated property value. This fee falls on the shoulders of the buyer.
Realtor's fee
The services of a realtor are usually paid by the seller (5-10% of the property price), but when working with foreigners, exceptions are possible. We recommend discussing this issue with your realtor.
Notary's fee
In the case of a standard transaction, notaries in the Dominican Republic usually charge about 1% of the property price.
Stamp duty
The amount of stamp duty is about 1.3% of the property value.
The best places to buy property in the Dominican Republic
For decades, Punta Cana on the southeastern coast, Sosua and Cabarete in the northern part of the island have remained the main destinations for foreign investment in real estate in the Dominican Republic.
Another resort place, Samana, is less promoted. This resort is more popular among the French and Canadian tourists. Samana attracts connoisseurs with untouched nature, but the insufficiently developed infrastructure scares away those who are more accustomed to comfort. Besides, this place is not cheap.
Investors' interest in the capital city, Santo Domingo, is also growing. The city is gaining popularity among tourists, and prospects for short-term rentals are growing accordingly. Buyer look for apartments here.
So, if you are not interested in the big city life, consider Sosua or Punta Cana.
