In the Dominican Republic, there are no restrictions for foreigners or Dominicans residing in other countries who wish to invest and buy real estate properties in the Dominican Republic.

Before buying a property, it is recommended that a lawyer investigates the legal status of the property. The owner or seller must provide copies of the Property Title, land survey plan, identity card or passport, Property Tax Certification (IPI), company documentation if applicable, and sales authorization if applicable, along with condominium regulations and declaration if applicable. Read more about legal services for Dominican real estate.

To transfer ownership of a property, the following steps are required:

1. Signing the “Sales Contract” before a notary. If the seller is married, the spouse must also sign the Sales Contract. This contract contains the legal description of the property, the price, and other conditions.
2. Obtain a property appraisal from the General Directorate of Internal Taxes (DGII) office, and then proceed to pay the transfer taxes.
3. Deposit the transfer contract and the seller’s Title Certificate along with the documentation provided by the DGII and copies of the identity cards or passports of the involved parties at the Land Registry Office of the jurisdiction where the property is located. The sale will be registered there.
4. The Land Registry Office issues a new title certificate in the buyer’s name and cancels the old certificate issued in the seller’s name. The time between signing the purchase contract and the issuance of the new title certificate in the buyer’s name is approximately 45 days, depending on the Land Registry Office where the sale is registered.

Legal fees are 1% of the sale value (with a minimum of US$1,000.00), which includes all necessary closing contracts, investigation of the property’s legal status, and the formalities for transferring the Title Certificate to the new owner’s name. The buyer pays for the legal fees, and the seller pays the real estate agency commission.

Transfer Taxes

The real estate transfer tax, which is only paid once, is three percent (3%) of the appraised value of the property, plus US$250 for miscellaneous expenses. This value is calculated by the local DGII office, and your lawyer obtains this value during the due diligence process.

Annual Property Taxes

Properties registered in the name of individuals, appraised by the DGII below the exempt amount (see here: DGII Property Tax), are exempt from the annual property tax. Any excess over this value will pay 1% per year.

The value of all properties owned by an individual will be summed, and the excess will pay 1% annually.

There are no exemptions for properties registered in the name of companies. All company properties will pay 1% annually of the appraised value by the DGII, without exceptions.

Inheritance of Properties by Foreigners

There are no restrictions for foreigners to inherit properties in the Dominican Republic. Inheritance taxes are 3% for heirs residing in the Dominican Republic, and if the beneficiary resides outside the Dominican Republic, the tax rate is 4.5% of the property’s value.

Incorporation of a Company under Dominican Law

If you want to establish a Dominican company to manage a business or acquire properties, there are three types:

Limited Liability Company (S.R.L.)

• Minimum capital: RD$100,000.00.
• Minimum number of partners: 2, and maximum: 50.
• Partners can be corporate entities validly registered in the Dominican Republic.
• Only one Manager is required, who must be a natural person.
• The liability of each partner is limited to their contribution. Discover more about real estate on the North Coast of the Dominican Republic.

Sole Proprietorship Limited Liability Company (E.I.R.L.)

• No minimum capital.
• No partners, only one natural person, who is the owner.
• The company is managed by its owner.