Buying a home in the Dominican Republic as a foreigner
Step by step, which taxes apply and which documents you’ll need. No residency required.
Buying in the Dominican Republic without living there is common: many buyers on the east and southeast coasts live in Europe, the United States or Canada. Dominican law allows foreigners to acquire property on the same terms as Dominicans, and you don’t need residency to buy.
How your ownership is protected
The country uses a title registration system (the Torrens system), governed by Real Estate Registry Law 108-05. When you buy, the Title Registry issues a Certificate of Title in your name: the document that proves the property is yours. Before signing, your lawyer requests a certificate of the property’s legal status from the Registry to check there are no liens or encumbrances.
The steps, one by one
- Reservation. You choose the home and sign a reservation agreement with a deposit.
- Legal review (due diligence). Your lawyer checks the title, the building permits and that the seller is entitled to sell.
- Promise-of-sale agreement. It sets out the price, the payment plan and delivery dates. For new builds, payments are usually tied to construction milestones.
- Final deed before a notary. Signed once payment is complete or on handover.
- Taxes. The buyer pays the transfer tax to the DGII (the tax authority).
- Registration. With the tax paid, the purchase is recorded and the Title Registry issues the Certificate of Title in your name.
You can sign in person or remotely through a power of attorney granted to your lawyer.
Which taxes apply
- Transfer tax: 3% of the property value, once, on purchase. Paid by the buyer.
- IPI (real estate wealth tax): 1% a year on the part of your real estate holdings above the exempt threshold, which in 2026 is RD$10,695,494. Paid in two instalments, in March and September.
- Rentals: rental income is subject to income tax.
In projects classified under CONFOTUR Law 158-01, the first buyer of a unit may be exempt from transfer tax and IPI. See our guide to the CONFOTUR law.
Documents you’ll be asked for
- A valid passport.
- Proof of the source of funds and recent bank statements (banks and notaries apply anti-money-laundering rules).
- If you’re married, your spouse’s details, as this can affect how the property is registered.
Payments are made by bank transfer, never in cash.
What closing costs
On top of the price, allow for the transfer tax (3%, or nothing if CONFOTUR applies), legal fees (typically around 1–1.5%) and small registration fees.
Tip: always work with a lawyer who is independent of the seller, and ask to see the land’s Certificate of Title before you reserve.
This guide is for information only and is no substitute for professional legal or tax advice. Rules and figures may change.
