How to buy Dominican Republic real estate guide, Permanent Caribbean property in Punta Cana, La Romana, Puerto Plata, and Santo Domingo

How to Buy Real Estate in the Dominican as a Foreign National

29 October 2024

Buying real estate in the Dominican Republic is a fairly seamless process for any foreign national who knows the basics. The Dominican Republic offers a pretty open market to foreign investors meaning foreigners enjoy the same rights on the title as the locals. Whether it’s rural land, a villa with a beachfront, or an apartment you want to acquire in the city, your rights of ownership won’t be different from those of the locals.

That being said, there are laws and regulations put in place to govern the property market for any country, and this wonderful Caribbean country is no exception.

In this guide, we will take you through the major steps and considerations to take before investing in real estate as a foreign national.

How Do I Choose the Right Location?

First of all, it’s very important to be clear about the purpose of buying property in this Spanish-speaking country. Will it be for a vacation home, pure investment, or permanent residence?

The Dominican Republic is a very diverse nation and, depending on the region, it will offer different lifestyles and experiences. Among popular locations for foreign buyers, we can outline Punta Cana, La Romana, Puerto Plata, and Santo Domingo.

Each area has its charm, and it is up to you to decide on the kind of real estate you want to invest in.

Punta Cana is home to luxurious beaches and resorts that make it ideal for vacation homes. Areas like Bavaro and Cap Cana are especially known for their high-end properties and proximity to marinas and golf courses.

The capital and largest city, Santo Domingo, has a vibrant culture and business environment, which appeals to those who prefer city life. Neighborhoods like Piantini, Naco, and Gazcue provide modern apartments, luxury condos, and commercial spaces.

High-end buyers may opt for La Romana which is widely recognized due to the famous Casa de Campo resort. There are also many villas and golf courses at La Romana making it a top pick for investors interested in premium and luxurious vacation homes.

It’s worth doing your research well before deciding the kind of real estate to go for. Visit if possible, or reach out to locals or other foreign property owners to get a sense of what the area might be like before making a decision.

Set Your Budget!

Setting a budget is quite important and it should include more than just the purchase price. You should consider costs like closing fees, legal fees, and insurance. Generally, closing costs in the Dominican Republic range between 5-10% of the purchase price.

This includes attorney fees, notary fees, and registration costs. Property management fees, utilities, and maintenance will also impact your budget, especially if you are going for an investment property.

Get Legal Assistance

Buying property abroad can be cumbersome, with unfamiliar legal procedures. Hire to your protection a Dominican lawyer specializing in real estate. Your attorney will do a title search to ensure that there are no liens or disputes on the property.

They will also check contracts to make sure everything is as it should be before you sign anything. Having this kind of support gives you peace of mind and protects your investment.

In the Dominican Republic, it costs between 1-1.5% of the price paid for the property to hire a real estate lawyer. You then have taxes and fees to consider.

Familiarize Yourself with the Buying Process

Buying a property in the Dominican Republic is uncomplicated. In general, it looks something like this:

Reservation Agreement: You would have signed a reservation agreement, which secures the property.

Purchase Agreement: Later, you would sign a purchase agreement that contains the terms of purchase, price, and payment schedule.
Due Diligence: Your attorney will be performing due diligence during this period. That would include the verification of title, investigation of property taxes, and review of any building permits.
Closing: After due diligence is complete, you will sign your final contract and pay the outstanding balance. The deed to the property will then be transferred to your name.

Enjoy Your New Property

After having crossed all the steps and closed a deal, now comes the time to enjoy one’s new property. Consider hiring a reputable property management firm if this will be used as a vacation house to take care of your place while you are not around.

If your new property is for renting, make sure you are informed about the local rental laws.

With a clear plan in place, the right team by your side, and a sense of the local market, you will be ready to make a sound investment in this breathtakingly beautiful Caribbean country.

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