Buying property in the Dominican Republic
Foreign buyers have the same ownership rights as Dominican citizens. Here is the process end to end, the costs to budget for, and the questions worth asking before you sign anything.
From first enquiry to registered title
Choose the unit and agree the terms
Pick the layout and the plot or floor. We confirm availability, the final price, the payment schedule and the delivery date in writing before anything is signed.
Reservation agreement and deposit
A reservation of $5,000 takes the unit off the market and freezes the price. It is set against the purchase price. At this point your lawyer starts due diligence.
Due diligence
Your lawyer verifies the title at the Registry of Titles, checks that the land is free of liens, mortgages and boundary disputes, confirms the developer's permits and confirms the seller's right to sell. This normally takes one to two weeks.
Purchase contract
The Contrato de Venta sets out the price, the payment schedule, the specification, the delivery date and the penalties on both sides. It is signed in front of a Dominican notary, who legalises the signatures.
Payments against construction
Payment is staged: typically 40% on signing, 40-50% spread through construction, and 10-20% on delivery. Payments during construction are tied to build milestones, not to the calendar.
Transfer tax and registration
On completion the transfer tax of 3% of the government-appraised value is paid, and the deed is filed with the Registry of Titles. The Registry issues a Certificado de Título in your name. Expect four to twelve weeks for the certificate to be issued.
Handover
You get the keys, the meters are transferred, and the HOA account is opened in your name. For rental owners we hand over with the unit ready to let.
What it costs on top of the price
Total closing costs normally land between 4.5% and 5% of the purchase price. Where a project holds a CONFOTUR exemption the 3% transfer tax falls away.
Paid once, on transfer of title. The appraisal is done by the DGII, the tax authority, and is often below the market price.
Covers due diligence, contract, notary and registration. García Tallaj handles this for our buyers.
Registry filing and notary legalisation of signatures.
Charged on the value above the exempt threshold (RD$ 9.8M+, indexed annually). Many buyers fall under it entirely.
Security, common-area power and water, gardening, pool maintenance, administration, reserve fund.
CONFOTUR: the tourism incentive
Law 158-01, known as CONFOTUR, exempts qualifying tourism-oriented developments from the 3% transfer tax and from annual property tax (IPI) for fifteen years. Where a project holds the exemption, the buyer, not the developer, is the one who saves the money.
Ask for the CONFOTUR resolution number of any project you are considering and check it. It is a project-level status granted by the Ministry of Tourism, not something a seller can promise verbally. If a project does not hold it, the 3% transfer tax and the annual IPI apply normally, which is not a reason to walk away, but it is a real number to put in your budget.
Ask us for the current CONFOTUR status of Villas del Sol and Flora Garden Residence and we will send you the documentation we hold.
Financing
The construction company finances buyers directly on individual terms, which is the fastest route and the one most of our buyers use for staged construction payments.
Dominican banks lend to non-residents, typically at 60-70% loan-to-value on completed property, with rates in the high single digits in US dollars. The paperwork takes longer than the sale itself, so start early if you intend to use a bank.
Ask before you sign
Send the question. We would rather answer it now than have you find the answer afterwards.