Property in the Dominican Republic: buying as a foreigner, with support

Transfer tax of 3% is paid by the buyer. Annual IPI is 1% of value above a threshold (RD$10,695,494 in 2026). For individuals, gains on a property sale are taxed at 10% (Law 30-26). Projects approved under CONFOTUR are exempt from transfer tax and IPI.

On purchase: — transfer tax: 3% of the higher of the tax authority's valuation and the contract price; paid by the buyer; not levied in CONFOTUR projects; — lawyer: lawyers estimate 1–1.5% of the price; notary about 0.5%; with the tax, closing usually costs 4.5–5.5%. While you own: — annual IPI: 1% of value above the threshold (RD$10,695,494 in 2026, indexed every year); paid in two parts, by 11 March and 11 September; property in CONFOTUR projects is exempt; — rental income is taxable; according to advisers a 27% withholding applies to non-residents, so confirm the rate and base with a tax adviser; — service charges for the complex and the operator's management fees. On sale: — for individuals, a gain on selling property is taxed at 10% as a single payment (Law 30-26, from 18 June 2026), with exceptions for a main home and sellers over 65; the taxable base has not yet been defined by regulation, which is priced into deals.

1. Legal due diligence. Owner, encumbrances, land status. For projects under construction: the developer, permits, the payment schedule, and whether buyers' money passes through a trustee. 2. A preliminary contract (promesa de venta) with a notary or lawyer, and a deposit. Lawyers' practice is a deposit of about 10% held in the lawyer's or an escrow account; that is custom, not a statutory rule. 3. The sale contract before a notary. Notaries in the Dominican Republic are lawyers by training. 4. Valuation by the tax authority (DGII) and payment of the 3% transfer tax. The buyer pays it, and the registry will not issue the title without it. 5. Filing with the Title Registry (Registro de Títulos, Property Registry Law 108-05). 6. Receiving the certificate of title (certificado de título) in your name. From an accepted offer to the certificate usually takes 30 to 120 days.

Local banks typically lend non-residents 50–70% of value (30–50% down) over 10–20 years; rates on US-dollar loans were around 8–10% in early 2026. This is an industry estimate; terms depend on the bank and your income.

Buying property does not by itself give residency. But a real-estate investment of US$200,000 or more is grounds to apply for permanent residency (Regulation 631-11, art. 55): the funds must be transferred from abroad and certified, and the application goes to the migration service (DGM). Lawyers put the procedure at roughly 45–90 days; a spouse and minor children are included in the application. Residency is not needed to buy. It matters if you want to live in the country, and then the US$200,000 threshold should shape your budget.

The market is open in two formats: ready property and projects under construction with instalments through the build. Most new resort supply is complexes and residences managed by international hotel operators. What we check before showing a project: the developer, whether buyers' money sits in a trust (Law 189-11, payments released as construction progresses), whether the project holds a CONFOTUR resolution and what exactly it covers, the operator agreement and the service charges. We do not promise yield: it depends on the project, occupancy and management costs, and figures in developer presentations are expectations, not guarantees.

What to keep in mind: — CONFOTUR benefits apply only to projects approved in advance by the tourism ministry; get the resolution number from the seller and have a lawyer check it in the registry. On resale the benefit does not automatically pass to the next buyer. Sources differ on when the 15 years start: Law 195-13 ties the period to completion of the project's construction and fit-out, so confirm it against the specific project's resolution. Law 30-26 also introduced a bar on using more than one incentive regime for the same activity; how that works in practice is not yet clear; — the first 60 metres from the high-tide line are public land (Law 305 of 1968, Constitution art. 15): the beach and land in that strip cannot be bought; the border zone (within 60 km of the Haitian border) has special requirements for land deals; — a property under construction carries delivery and quality risk: check that payments run through a trust and are tied to construction stages; — the 2026 tax reform changes the regime for sales and is still being clarified by the tax authority: Law 30-26 did not expressly repeal the 3% transfer tax, but how it sits with the new rules is for DGII to explain; — a non-resident mortgage means 30–50% of your own funds and a higher rate than residents get; — expected yield and price growth in developer presentations are not a guarantee. Facts checked in October 2026. The tax reform (Law 30-26 of 18 June 2026) is only beginning to apply and the tax authority is still clarifying parts of it; thresholds, rates and programme terms change — confirm them with a Dominican lawyer before you sign.