Buyer's & Investor's Guide

01 · Who Can Buy Property in the Dominican Republic

Foreign nationals have the same real estate ownership rights as Dominican citizens under Dominican law (Law 16-95 on Foreign Investment and the Dominican Civil Code). There is:

• No restriction on 100% foreign ownership
• No minimum investment amount required simply to own property
• No cap on the number of properties a foreign buyer may hold
• No requirement to be a resident or hold a visa to purchase
• No special government approval process for standard residential purchases

Ownership can be held individually, jointly, or through a Dominican or foreign corporate entity — a common structure for buyers seeking estate-planning or liability advantages. Your attorney will advise on the best structure for your situation.

02 · The Buying Process, Step by Step

Step 1 — Discovery & Property Search

Define your goals, budget, timeline, and preferred destinations. Oscar curates a shortlist of properties matching your criteria, including off-market and pre-launch opportunities not publicly listed.

Step 2 — Property Tours

In-person or virtual viewings of shortlisted properties. For international buyers unable to travel immediately, Oscar provides detailed video walkthroughs and live video tours.

Step 3 — Offer & Promise-to-Sell Contract

Once you choose a property, a formal offer is submitted. If accepted, both parties sign a "Contrato de Promesa de Venta" (promise-to-sell contract), which typically includes a deposit (commonly 10%) and outlines the terms, price, and closing timeline.

Step 4 — Legal Due Diligence

Your attorney conducts a full title search at the Registry of Titles, verifies the property is free of liens or encumbrances, and confirms CONFOTUR status if applicable. See Section 03 for detail.

Step 5 — Financing (If Applicable)

If not paying cash, financing is arranged through a Dominican bank or a developer's in-house payment plan. See Section 06.

Step 6 — Closing & Title Registration

Final funds are transferred, closing documents are signed before a notary, and the deed is submitted to the Registry of Titles for transfer into your name. A Certificate of Title is issued once registration is complete.

Step 7 — Post-Purchase Setup

Property management, rental program enrollment, utility transfers, and — if applicable — filing for residency by investment.

03 · Legal Due Diligence — What Your Attorney Should Verify

• Title search at the Registry of Titles (Registro de Títulos) confirming the seller holds clear, marketable title
• Encumbrance check confirming no mortgages, liens, or legal disputes attached to the property
• CONFOTUR status verification with the Ministry of Tourism, if the property is marketed as CONFOTUR-approved
• Survey/boundary confirmation, particularly important for land and villa purchases
• HOA and condo association standing — confirm all common-area fees are current and there is no pending special assessment
• Developer track record, for any pre-construction purchase — completed project history, delivery timelines, and reputation

Always work with a licensed, independent Dominican attorney — never rely solely on the seller's or developer's counsel. Oscar refers vetted, independent law firms with deep CONFOTUR and foreign-buyer experience at no charge.

04 · Closing Costs — What to Budget

There is no buyer's agent commission in the Dominican market — the listing agent (or Oscar, representing you) is compensated by the seller or developer, at no direct cost to the buyer.

05 · CONFOTUR, Explained

CONFOTUR (Consejo de Fomento Turístico — Tourism Promotion Council) administers the Dominican Republic's flagship tourism investment law, Law 158-01 (2001), whose key property-tax exemption was extended from 10 to 15 years by Law 195-13 (2013). When a property is marketed as "CONFOTUR-approved," it means the development has been certified by the Council as a qualifying tourism project.

• 0% transfer tax — the standard 3% real estate transfer tax is eliminated at closing
• Up to 15 years property tax (IPI) exemption — the standard annual 1% property tax is waived
• Rental income tax exemption — up to 10 years, depending on project classification
• Import duty exemptions for developers on construction materials — savings often passed to buyers via furniture packages

Punta Cana has the highest concentration of CONFOTUR-approved developments nationwide, though qualifying projects also exist in Casa de Campo, Playa Nueva Romana, Samaná, and Santo Domingo. Not every property in these destinations is CONFOTUR-approved — always verify status for the specific property, not just the general area.

06 · Financing Options for Foreign Buyers

Dominican Bank Financing

Banks including Banco Popular, Banco BHD, and Scotiabank offer mortgages to qualified foreign nationals. Typical terms: 30–40% down payment, 8–12% annual interest in USD, and 10–20 year terms. Documentation generally includes proof of income, bank statements, and a credit reference letter.

Developer Financing

Many pre-construction developers offer in-house payment plans, typically 20–30% down with the balance paid in installments over 2–5 years through delivery — often at more flexible terms than bank financing, though usually without the property serving as loan collateral until closing.

Cash Purchase

The majority of luxury transactions in the DR are completed in cash, which can also strengthen negotiating position and simplify the closing timeline.

07 · Ongoing Property Taxes

Dominican residential properties are subject to an annual 1% property tax (IPI — Impuesto al Patrimonio Inmobiliario) on assessed value exceeding a government-set threshold (approximately US$170,000 as of 2025, per DGII). CONFOTUR-approved properties are exempt from this tax for up to 15 years. Rental income is subject to Dominican income tax unless a CONFOTUR rental exemption applies; consult a Dominican tax advisor or accountant on your specific filing obligations, including in your home country.

08 · Residency by Investment

A minimum US$200,000 investment in Dominican real estate qualifies for permanent residency (Residencia por Inversión) under Law 171-07.

• Residency is renewable every 4 years
• No requirement to reside in the DR full-time
• Path to Dominican citizenship becomes available after 2 years of legal residency

Oscar refers vetted Dominican immigration attorneys who handle the application process at no charge for referral.

09 · Renting Out Your Property

Short-term and long-term rental income is a common strategy for owners in tourist-zone destinations. Considerations:

• Property management companies typically charge 20–25% of gross rental income for full-service management (bookings, cleaning, maintenance, guest services)
• Gross rental yields vary meaningfully by destination and property type — always request a market-specific estimate rather than relying on nationwide averages
• Rental income tax exemptions (up to 10 years) may apply to CONFOTUR-approved properties — verify with your attorney
• Full-time residential markets like Santo Domingo and Puntacana Village tend to offer more stable, less seasonal rental demand than resort-only destinations

10 · Common Mistakes Foreign Buyers Make

• Relying on the seller's or developer's attorney instead of independent legal counsel
• Assuming CONFOTUR status without verifying it in writing for the specific property
• Underestimating closing timelines — Registry of Titles processing can take longer than expected during peak season
• Skipping a physical inspection — or, for pre-construction, skipping developer due diligence
• Not budgeting for HOA and management fees in addition to purchase price and closing costs
• Wiring funds without verifying banking details directly with the receiving party by phone — wire fraud targeting real estate closings is a real, global risk

11 · Glossary of Key Terms

• CONFOTUR — Consejo de Fomento Turístico; the government body administering Law 158-01 tourism tax incentives
• IPI — Impuesto al Patrimonio Inmobiliario; the annual 1% property tax
• ITBIS — Dominican value-added tax (VAT), currently 18%
• Promesa de Venta — the promise-to-sell contract signed after an accepted offer
• Registro de Títulos — the Registry of Titles, the government body that records and issues property titles
• Residencia por Inversión — residency by investment, under Law 171-07

12 · Quick-Answer FAQ