Can Foreigners Buy Property in the Dominican Republic? A Guide
It’s often tempting to move to a new country, where life can and likely will be completely different. And maybe for you, that country is the Dominican Republic.
Moving to a new country brings your inner adventurer to life, and as you consider it further, you begin to wonder about where you will live. This inevitably leads to the question can foreigners buy property in the Dominican Republic.
So in this article, we’re taking you through the processing of whether a foreigner can move to the Dominican Republic, what you will need and a whole host of other answers. But first, let’s start with a simple summary, then we’ll go over more details…
Foreigners can easily buy property in the Dominican Republic without restrictions via a deposit, basic documentation and a simple process. The title registry office must record all property purchased from overseas buyers. And you will need to ensure you satisfy the correct visa requirements.
That’s the simple answer, but there are plenty of nuances we need to take into account, so let’s walk you through the process in more detail.
Buying property in the Dominican Republic
The Dominican Republic has a very welcoming policy when it comes to foreign buyers. Foreign citizens are welcome to purchase property of various types in the Dominican Republic and retain the same rights and responsibilities as a citizen from the Dominican Republic.
Here are a few quick facts you need to take into account:
- Retirees must have a minimum table income of more than $1500 to guarantee residence
- Foreign buyers enjoy a 50% exemption from property tax in the Dominican Republic
- 50% exemption on taxes for all forms of income from any source, e.g. Interest, dividends, pensions
- 50% exemption from taxes on mortgages where the creditors are financial institutions regulated under Dominican financial law
- Exempt from taxes levied on property transfers
- Exemption from payment based on taxes for household items and personal items
- Only liable for partial exemption on vehicle taxes
- Ten-year relief for developers, and other benefits on all national and municipal taxes
There are visa requirements to research, and we’ll go into those in a moment. But perhaps the first thing to do is to locate a property that you would be interested in.
There are a wealth of different types, sizes and places to buy your Dominican Republic properties, so click on a suitable property type below to start your search.
We have already helped many foreign buyers to secure their perfect home in the Dominican Republic, so once you’ve selected your property, then contact us and we can guide you through the rest of the process.
Let’s go over a few of the basic steps for buying a property in the Dominican Republic for Foreigners.
Basic steps for foreigners to buy property in the Dominican Republic
Foreigners buying a property in the Dominican Republic is relatively straightforward, the process can be roughly broken down into three sections which we’ve outlined below
1. Contract of sale and deposit to secure the property
Both parties involved are required to complete and sign a “Contract of Sale” document, or a “Purchase Agreement”. This then requires a deposit, usually around 10%. This ensures the property is marked as reserved and is subsequently removed from the market.
2. Due Diligence for documentation
There will then be a process of due diligence conducted by your lawyer. During the process, they will conduct a title search, a property survey and obtain the required documentation from the sellers which include a copy of the title.
3. Completing the sale
The payment and money authentication are then completed for the “Contract of Sale” by the lawyer/notary. Your lawyer will then submit all the relevant documentation to the Registrar of Titles.
Assuming all goes smoothly, then from the point at which a sale is initiated to the final completion date, the property will typically be signed over to the new owner within 45 days. This can often be as little as 30 days.
General costs for buying a property in the Dominican Republic
- Notary Fee – 0.25% to 1% (buyer pays)
- Documentary Stamp – 1.30% (buyer pays)
- Estate Agency Fee: 5-10% (seller pays)
- Total costs for buyer 4.5% – 5.3%
- Total costs for seller 5% – 10%
Total transaction costs: 9.5% – 15.3%
There are other details to take into account beyond the sale. These include Annual Property Taxes, mortgage financing, seller financing and other costs, and some of these do have exceptions. For more details come and talk to us about a property you’re interested in.
Required Documents for foreign buyers in the Dominican Republic
Here’s the list of documentation and evidence that you will need to gather in advance of, or during the purchase of your new property.
- A copy of your current and valid passport
- Most recent 2 income tax statements
- Self-employed or individual: Authorization to request a Credit Bureau Report from the buyers country of residence
- An income letter from your employer if you’re an employee
- Evidence of assets in your original country of residence for the USA, Canada or UK
- Insurance assignment documentation
- Formal property appraisal from an authorized appraiser
- A copy of the offer of purchase and sale
- Proof of deposit payment
- Completed title and government demarcation survey (Deslinde) if obtaining mortgage financing
If you’re unsure as to whether you have the specific documentation, or need to clarify aspects of these, then we can provide some really quick help, by contacting us we can either answer your question directly, or we can obtain the right professional guidance for you.
Let’s go over a few more of the common questions we’re often asked about purchasing real estate in the Dominican Republic.
TIP: For foreigners from the United States, the United Kingdom, and any EU member countries, there are no visa requirements, simply a payment of a tourism entry tax of 10 USD.
Is it easy to buy a house in the Dominican Republic?
Buying property in the Dominican Republic is a fairly simple process. Standard documentation and checks, and the deposit are paid. The notary helps to complete the legalities and the balance is then transferred via escrow. The property is transferred to the buyer and added to the Dominican title register
Is real estate in the Dominican Republic a good investment?
The Dominican Republic is considered an ideal island nation to invest property. Increasing demand and undervalued properties mean you can purchase a rentable apartment for as little as US$100k or under. As a foreigner, financing is relatively simple for purchasing property in the Dominican.
Is it safe to buy a house in the Dominican Republic?
The Dominican Republic government has no restrictions on foreigners purchasing real estate property in the Dominican Republic. Reputable professional channels provide a legitimate and legal means to safely purchase property in the Dominican Republic for permanent residence or rental.
Can I buy and own land in the Dominican Republic?
Foreign nationals can legitimately buy land in the Dominican Republic. The process is straightforward and property investment has no restrictions in place for foreigners. In fact, the government provides a range of incentives and tax relief options to foreigners buying land in the Dominican Republic.
More help buying property in the Dominican Republic…
If this is your first time purchasing a property in the Dominican Republic, or indeed, purchasing property abroad at all, then we are here to help guide you. Here you will find how typical Dominican Houses look like.
After selecting your ideal property, contact us and we can help you through the process from selecting to obtaining the right professional help to make the purchase. So what are you waiting for? Choose your property and let’s make this happen for you!