Buying Property in the Dominican Republic

Can foreigners own property in the Dominican Republic?

Yes — fully and without restriction. The Dominican Republic's constitution grants foreign nationals the same property ownership rights as Dominican citizens. There are no restrictions on the amount of property foreigners can own, no mandatory joint ownership with locals, and no special permissions required. This makes the DR one of the most accessible real estate markets in the entire Caribbean.

The buying process, step by step

1. Identify the property

Work with a licensed real estate agent or developer (like us) to identify properties that match your needs and budget. We're happy to guide you through our available listings and arrange viewings — including video tours for international buyers.

2. Due diligence

Before committing, your attorney will verify the property's legal standing: title certificate (Certificado de Título), property boundaries (deslinde), existing liens or encumbrances, and tax status. This step is essential and should never be skipped.

3. Promise of sale (Promesa de Venta)

Once due diligence is complete and both parties agree on the terms, a notarized promise of sale is signed. This contract outlines the purchase price, payment timeline, and conditions. A deposit — typically 10–30% — is paid at this stage.

4. Final sale (Contrato de Venta)

The final purchase agreement transfers ownership. Both parties sign before a notary and the remaining balance is paid. The notary then submits the documents to the Title Registry (Registro de Títulos) for official title transfer.

5. Title transfer

The Title Registry updates the Certificado de Título to reflect the new owner's name. This process typically takes 2–4 weeks. Once complete, you are the legal, registered owner.

Costs to budget for

In addition to the purchase price, plan for the following:

• Transfer tax: 3% of the officially assessed property value (impuesto de transferencia)
• Legal fees: Typically 1–1.5% of the purchase price
• Notary fees: Approximately 0.5–1%
• Title registration: A small administrative fee

Annual property tax (IPI)

The Dominican Republic imposes an annual property tax (Impuesto al Patrimonio Inmobiliario, or IPI) of 1% on the assessed value of residential properties above a threshold that is adjusted annually. Properties below the threshold are exempt. Many first-time buyers are surprised to find that a significant portion of Caribbean properties fall below this threshold.

Why invest on the North Coast?

The Dominican Republic's North Coast — particularly the Cabarete–Sosúa corridor — has attracted international buyers for over two decades. Key advantages include:

• Year-round warm weather and reliable trade winds
• World-class surf, kiteboarding, and water sports
• A growing international community with excellent infrastructure
• Strong rental demand from tourists and long-term visitors
• Relatively lower property values compared to other Caribbean destinations
• Good air connectivity via Puerto Plata Airport

Our recommendation

Always work with a bilingual Dominican attorney who specializes in real estate. We are happy to refer you to trusted professionals. And of course, our team is here to answer any questions you have about the Hideaway Beach community specifically.