Buying property in the Dominican Republic as a foreigner in 2025? This expert guide covers legal steps, taxes, financing, and regional insights to help you invest confidently.
Why the Dominican Republic Is a Top Choice for Foreign Buyers
The Dominican Republic is quickly becoming a favorite destination for international real estate investors, especially from North America and Europe. With 100% foreign ownership allowed, no residency requirements, and affordable property prices compared to other Caribbean countries, it’s an ideal location to invest in.
Government programs like CONFOTUR further boost appeal, offering tax incentives such as exemptions from property transfer tax and annual property tax on approved developments.
Buying Property in the Dominican Republic as a Foreigner: How to Choose the Right Region
Each region in the Dominican Republic offers unique advantages:
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Punta Cana / Bávaro Strong tourism, high rental demand, and great ROI potential.
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Santo Domingo Ideal for city living and long-term rental income.
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Samaná & Las Terrenas Eco-luxury developments with growing expat communities.
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Puerto Plata / Sosúa Affordable pricing and established foreign buyer interest.
Choosing the right region based on your goals—whether it’s a vacation home, investment rental, or retirement property—is the first step to a smart investment.
Build Your Local Team: Agent, Attorney & Notary
Work with a Licensed Real Estate Agent
Select a trusted agent with a solid track record of working with international buyers.
Hire a Real Estate Attorney
Your lawyer will perform title searches, draft and review contracts (like the Promise of Sale), and ensure the property has a clean history.
Appoint a Notary Public
A notary is required to authenticate documents and oversee the legal transfer of property ownership.
Tip: Working with licensed local professionals is essential to avoid legal risks and paperwork errors.
Legal Due Diligence: Protect Your Investment
Before closing the deal, make sure the following legal steps are completed:
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Title Search Confirms the property has no liens or ownership disputes.
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Promise of Sale Agreement Typically signed with a 10% deposit.
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Permit & Boundary Checks Handled by your lawyer to confirm legal property limits.
Proper due diligence ensures you’re buying a legitimate, risk-free asset.
Finalizing the Purchase
When everything is verified, it’s time to close the deal:
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Sign the Contrato de Compraventa (Deed of Sale)
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Pay the remaining balance and applicable fees
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Register the property title at the Realty Office (Conservaduría de Hipotecas)
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Receive your official title document, usually within a few weeks
After the Purchase: Rental & Management Options
Short-Term Rentals
Punta Cana and Santo Domingo offer attractive rental yields (8–12%) from vacation rentals.
Full-Service Management
Hiring a local property management company can help with tenant services, maintenance, and rental bookings—ideal if you’re living abroad.
Pitfalls to Avoid When Buying in the DR
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Skipping the title check Always verify legal ownership
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Underestimating costs Budget at least 6–8% extra for taxes and fees
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Rushing into pre-construction deals Vet the developer thoroughly
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Not visiting the property Pictures can be misleading; inspect in person if possible
Why Now Is a Great Time to Buy
The DR welcomed over 11 million tourists in 2024, and the real estate market continues to expand. With rising global interest, stable policies, and developer-backed growth, now is a smart time to invest before prices rise even further.
Make Your Dominican Real Estate Dream a Reality
Buying property in the Dominican Republic is a powerful opportunity—whether you’re building a vacation escape, investing for rental income, or planning your future retirement. By working with trusted local experts, doing your homework, and following legal procedures, you can make a secure and rewarding investment.
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