Buying Property in the Dominican Republic as a Foreigner: A Due Diligence Checklist

General information, not legal, tax or investment advice. Consult a licensed Dominican lawyer and a tax adviser before buying. Figures and rules below were checked against official sources on October 23, 2026 and can change.

1. Hire your own independent lawyer

Use a lawyer who doesn't work for the seller or developer. They can run the checks below and draft or review the contracts.

2. Verify the title

• Ask for the Certificado de Título and have your lawyer request a Certificación del Estado Jurídico del Inmueble from the Registro de Títulos. It is issued by the Registro de Títulos and shows the registered status of the property and the entries (such as mortgages, liens or provisional measures) recorded on it as of its issue date (Registro Inmobiliario service sheet; Ley 108-05, arts. 103–105). Ley 108-05 also allows a certification "con reserva de prioridad", valid for up to 15 days, to protect a pending transaction (art. 105).

• Confirm the parcel has been through deslinde, the process that locates and individualizes rights held under a constancia anotada so the parcel is clearly defined and gets its own Certificado de Título (Poder Judicial Resolución 790-2022, arts. 10–11). You can track filings through the Jurisdicción Inmobiliaria.

• Check that the property is current on IPI. The DGII states the property must be up to date on IPI obligations before the transfer tax can be paid (DGII help center).

3. Understand the contracts

• A promesa de venta (promise of sale) often comes first, with a deposit. Ask your lawyer about making the deposit conditional on clean due diligence.

• Consider escrow or your lawyer's trust account rather than paying the seller directly, and ask your lawyer which arrangement suits your deal.

4. Budget for taxes and costs

• Transfer tax: 3% of the property's value, unified under Ley 288-04 art. 20 (as amended by Ley 173-07), payable within six months of the transfer deed; surcharges and interest apply after that (Ley 288-04, DGII). The DGII says it is calculated on the higher of the property value and the sale price (DGII help center).

• IPI (annual property tax): for individuals in 2026, 1% on the value of total real-estate holdings above RD$10,695,494; the threshold is adjusted yearly for inflation, and trusts pay 1% on the full value (DGII – IPI). IPI is paid in two semiannual instalments, due March 11 and September 11 (DGII – IPI).

• Add legal fees, registry fees, HOA fees and other closing costs; ask your lawyer for a written estimate.

5. CONFOTUR and off-plan purchases

• Ley 158-01 (CONFOTUR) can exempt qualifying tourism projects from transfer taxes, among other benefits (Ley 158-01, art. 4; CONFOTUR – Beneficios). The exemption applies to buyers who invest directly with the promoter or developer; later resales to third parties are excluded (art. 4, Párrafo IV).

• First buyers (individuals) of properties in projects approved under Ley 158-01 are also exempt from IPI (DGII Guía 17 – IPI).

• If a project claims CONFOTUR benefits, ask for the official CONFOTUR classification resolution and check that it covers your unit. The Ministerio de Hacienda lists the Resolución de Clasificación Definitiva and CONFOTUR construction start/completion notices among the documents for a transfer-tax exemption request (Hacienda – ITI).

• For pre-construction, check the developer's track record, permits and payment schedule, and ask your lawyer how your money is protected if delivery is delayed.

6. Rental plans

Check HOA rules on short-term rentals before you buy, and ask a Dominican accountant or lawyer about tax registration and obligations on rental income.

FAQ

Can foreigners own property in the Dominican Republic?

Yes, in general. The Foreign Investment Law (Ley 16-95, art. 3) allows foreign investment in Dominican real estate, subject to the limitations that apply to foreigners (Ley 16-95, Banco Central). Have a lawyer confirm whether any restriction applies to the specific property.

What is the transfer tax in the DR?

3% of the property's value under Ley 288-04 art. 20, payable within six months of the transfer (DGII). Some CONFOTUR purchases bought directly from the developer may be exempt.

What is a Certificación de Estado Jurídico?

A document issued by the Registro de Títulos that certifies a property's registered legal status and the entries recorded against it on the issue date (Registro Inmobiliario).

How Dominican Investing helps

Dominican Investing lists DR opportunities and connects investors with project owners. Every opportunity still needs your own independent legal and financial review. dominicaninvesting.com

General information, not legal, tax or investment advice. Consult a licensed Dominican lawyer and a tax adviser before buying.