One of the most attractive features of investing in real estate in the Dominican Republic is that foreign nationals enjoy the same property ownership rights as citizens. There are no restrictions on foreigners buying property, and the process is relatively straightforward with proper legal guidance.
Title Verification and Due Diligence
Before purchasing, it’s critical to verify the property’s title through the Title Registry Office (Registro de Títulos). A local attorney can perform due diligence, ensuring the title is clear of liens, encumbrances, or boundary disputes.
The Role of a Notary and Legal Representative
All real estate transactions in the Dominican Republic must be executed before a notary public. It’s advisable for non-citizens to engage a bilingual attorney familiar with real estate law to review contracts and represent their interests during the closing process.
Property Registration
Once the sale is completed, the new title must be registered in the buyer’s name. This process can take several weeks but is crucial for securing legal ownership. Registration taxes and legal fees generally range from 3% to 5% of the property’s assessed value.
Taxes and Fees
Foreign property owners are subject to an annual property tax of 1% on the value exceeding DOP 9,520,861 (about USD 170,000, as of 2024). However, many first-time buyers or smaller residential properties may be exempt. It’s important to consult a tax advisor for up-to-date thresholds and exemptions.
Inheritance and Estate Planning
Non-citizens can pass property to heirs, but Dominican inheritance laws apply. It’s recommended to draft a local will or estate plan to ensure smooth succession and avoid legal complications.
Financing Options
While local financing is available, many foreign buyers choose to purchase with cash or obtain financing through international banks. Non-residents may face stricter loan terms and higher interest rates.
In conclusion, owning property in the Dominican Republic is highly accessible to foreigners, provided that legal steps are properly followed. Working with reputable real estate agents and attorneys ensures a secure, transparent, and legally compliant investment process.
