Who can buy, the steps from promise of sale to title, what closing costs, the 2026 tax changes and where the limits are.
A foreigner can buy property in the Dominican Republic on the same terms as a citizen. No residency, special permit or local partner is required, and you can sign while visiting on a tourist entry. The certificate of title is issued in your name. What matters is the order of the steps and what you check before you pay.
Who can buy, and where the limits are
Foreigners, resident or not, have the same ownership rights as Dominicans. There is no limit on how many properties you can own. Two limits are worth knowing:
- the first 60 metres from the high-tide line are public land (Law 305 of 1968; the Constitution treats beaches as public domain): the beach and land in that strip cannot be bought;
- the border zone, within 60 km of the border with Haiti, has special requirements for land deals; if a plot is anywhere near it, ask your lawyer first.
The steps
- Legal due diligence: the owner, encumbrances, land status; for a project under construction also the developer, permits and the payment schedule;
- a preliminary contract (promesa de venta) with a notary or lawyer and a deposit; lawyers describe a deposit of about 10% held in a lawyer's or escrow account, which is custom rather than a statutory rule;
- the sale contract before a notary (Dominican notaries are lawyers by training);
- valuation by the tax authority (DGII) and payment of the 3% transfer tax, which is the buyer's and is required before the registry issues the title;
- filing with the Title Registry under the Property Registry Law 108-05;
- the certificate of title in your name. From an accepted offer to the certificate usually takes 30 to 120 days.
What closing costs
The transfer tax is 3% of the higher of the DGII valuation and the contract price. Lawyers estimate their fee at 1–1.5% and the notary at about 0.5%, so closing usually costs 4.5–5.5% of the price. In a project approved under CONFOTUR the transfer tax is not levied (see our article on branded and hotel-managed residences for what that requires).
Taxes while you own
The annual property tax (IPI) is 1% of value above a threshold that is indexed every year: RD$10,695,494 in 2026. It is paid in two parts, by 11 March and 11 September. Rental income is taxable; according to advisers a 27% withholding applies to non-residents, so confirm the rate and base before you plan the income.
Selling, and the 2026 change
Law 30-26 of 18 June 2026 set a 10% single, final tax on gains from real-estate sales by individuals, with exceptions such as a main home reinvested within six months and sellers over 65. The law fixes the rate but not the taxable base, and the tax authority is still to clarify it, so sellers and buyers are pricing that uncertainty. The 3% transfer tax was not expressly repealed by this law; how it sits with the new rules is for DGII to explain.
Checks before you pay
- the title at the Registry: owner, encumbrances, whether the property is as described;
- for off plan: who the developer is and whether buyers' money goes through a trust (Law 189-11), so that payments are released as construction progresses;
- the contract: price, currency, payment dates, delivery date and what happens if it slips;
- any tax benefit you were promised, in writing and verifiable.
Facts checked in October 2026. The reform is new and parts of it are still being clarified; confirm thresholds and rates with a Dominican lawyer before you sign.