How to buy property in the Dominican Republic, a U.S. buyer's guide

The DR is one of the most foreigner-friendly real estate markets in the Caribbean.

There are no restrictions on foreign ownership. A U.S., Canadian, or European citizen can buy and hold property in the Dominican Republic on the same legal footing as a Dominican national. That's rare in this region, and it's the foundation of the buying market on the north coast.

The process itself runs differently from what U.S. buyers expect. There's no MLS-driven offer-counter-offer dance. Most negotiations happen in person or over WhatsApp. Title verification, attorney involvement, and the closing structure all matter more than they would for a typical U.S. transaction.

The eight-step process

1. Pre-shopping: define your goal

Are you buying for personal use, rental income, or both? The answer changes which areas you should consider, what unit count makes sense, and what kind of property management you'll need afterward.

2. On-the-ground viewings

Most foreign buyers fly down for 3–5 days, see 8–15 properties, and pick a shortlist of 2–3. Trying to do this remotely from photos almost never works.

3. Make an offer

Offers are typically verbal first, then captured in a brief reservation agreement. Earnest money is small ($5,000–$10,000 USD).

4. Hire your own attorney

Crucial. The seller's attorney represents the seller. Budget 1–1.5% of the purchase price for legal fees.

5. Title due diligence

Your attorney pulls the title from the Registro de Títulos, confirms there are no encumbrances, verifies the property boundaries, and checks that the seller has the right to convey.

6. Promesa de Venta

A binding contract that locks in price, terms, and closing date. Signed 30–60 days before closing. Bulk of deposit (10%) goes into escrow.

7. Closing

At the Title Registry. You sign the deed (Acto de Venta), the balance is wired, title transfers to your name.

8. Title issuance

The new Certificado de Título is issued within 30–90 days. You're officially on the deed.

What it costs

4–7% of the purchase price in transaction costs:

• Transfer tax: 3% (DGII)

• Legal fees: 1–1.5%

• Notary and registration: ~$500–$1,500 USD

• Title insurance (optional but recommended): 0.5–1%

What we'd tell our own family

The biggest mistake foreign buyers make is skipping their own attorney. The second is wiring earnest money to an unverified account. The third is buying property in a name structure (LLC, trust) without thinking through Dominican tax implications first.

If you're looking at the Cabarete / Sosúa / Puerto Plata corridor, reach out, we'll walk you through the specific paperwork your situation needs.