This is the most common question we get, and here’s the answer you’ve been looking for. By Robert Maceachern | RealtorDR
If you’re considering purchasing property in the Dominican Republic—whether it’s a beach house in Punta Cana, a condo in Santo Domingo, or a villa in Cabarete—the good news is that yes, foreigners can absolutely buy property here. And not just that, they enjoy the same rights as Dominican citizens when it comes to property ownership.
Foreigners Have the Same Property Rights as Locals
There are no restrictions based on nationality or residency status when it comes to buying, selling, or owning real estate in the Dominican Republic. That means, as a foreigner, you can own property here outright, whether it’s residential, commercial, or even agricultural.
The rights to property ownership are fully protected under the Dominican Constitution and enforced by the Land Registry Law. There are no limits to the amount of property a foreigner can own. So, yes, you can own that beautiful beachfront villa you’ve been dreaming about without worrying about limits on ownership.
➡️ You don’t need to have Dominican residency or a Dominican bank account to buy property.
You can purchase real estate with just your foreign passport and a second piece of ID (such as a driver’s license). And since we work with trusted attorneys who provide escrow services in the United States, the entire process is secure and straightforward
For more detailed information on the legal framework, you can check the official Dominican Real Estate Lawyer Website, which provides further insights on foreign property ownership in the DR.
A Few Minor Restrictions You Should Know About
While property ownership is open to all, there are some minimal restrictions in specific areas:
- Border Zones: Foreigners cannot acquire land within 60 kilometers (37 miles) of the country’s international borders unless they have prior presidential authorization. This law is designed to protect national security in border areas (Law No. 305).
- Coastal Zones: The first 60 meters from the shoreline are considered public domain and cannot be privately owned. This area is reserved for public use. However, ownership is allowed beyond this zone, with certain zoning and environmental regulations.
- Protected Environmental Areas: Properties located within national parks, ecological reserves, or protected zones are governed by Law 64-00, which protects the environment. These areas cannot be privately owned or developed.
Why the Dominican Republic is a Hotspot for Real Estate Investment
Let’s break it down. The Dominican Republic offers strong real estate growth potential. The economy is expanding, tourism is booming, and property prices are still affordable compared to other Caribbean destinations. From world-class beaches to vibrant cities, there’s something for every type of investor.
Whether you’re drawn to Punta Cana, Las Terrenas, or the hidden gems of Sosúa and Cabarete, the Dominican Republic is seeing a surge in demand for vacation rentals, residential properties, and commercial real estate. The nation’s favorable tax incentives and improving infrastructure make it an ideal place to invest.
Mortgage Opportunities for Foreigners
Not only can you own property in the Dominican Republic, but foreigners can also qualify for mortgages. Non-resident buyers are eligible for mortgage loans through Dominican banks. Here’s what you need to know:
- Loan-to-Value (LTV): Typically between 50%-70%.
- Interest Rates: Typically range from 8% to 13% annually.
- Loan Term: Mortgages can be extended for up to 25 years.
To qualify, you’ll need to provide good credit, proof of income, and a higher down payment (usually between 30%-50%). But don’t worry—local financing options make it easier than ever to finance your dream property in the Dominican Republic.
For additional mortgage insights, visit the Global Property Guide.
The Buying Process in the DR
Here’s how the real estate transaction process typically works in the Dominican Republic:
- Offer to Purchase: A simple document outlining basic terms that you and the seller agree on, together with a deposit, so that the lawyers can begin working on the next step.
- Due Diligence: Before the sale is finalized, it’s essential to conduct thorough due diligence to verify property ownership, inspect the property, and confirm that there are no outstanding legal issues.
- Deed of Sale: The final transfer of the property is done through the Deed of Sale (Contrato de Venta) in front of a notary public.
- Transfer Taxes: A 3% property transfer tax is paid by the buyer, along with minor fees for notary services and legal counsel.
- Title Registration: Once the taxes are paid, the Deed of Sale is submitted to the Title Registry Office, and a new Certificate of Title is issued in the buyer’s name.
For an in-depth look at the buying process, review the full guide on Buying Real Estate in the Dominican Republic.
Real Estate Buying Costs and Taxes
Here’s a breakdown of the taxes and expenses involved in purchasing property in the DR:
- Transfer Tax: 3% of the assessed value
- Legal Fees: 1-2% of the purchase price
- Real Estate Agent Fee: paid by the seller
The total transaction costs are typically between 3-5%, which include all taxes and fees associated with purchasing the property.
Conclusion: The Dominican Republic is a Prime Investment Opportunity
With no restrictions on foreign ownership, affordable prices, and a growing economy, the Dominican Republic presents a highly attractive opportunity for real estate investors. Whether you’re looking for a luxury vacation home, rental income, or long-term appreciation, now is the time to invest in this stunning Caribbean destination.
For more information and to get started on your investment journey, check out the listings and resources available on RealtorDR.com.
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Contact RealtorDR today to start your search for the perfect property in the Dominican Republic!