Buying property in the Dominican Republic as a foreigner is a straightforward process, thanks to the country’s foreign-friendly real estate laws. Whether you’re looking for a vacation home, an investment property, or a permanent residence, this guide will walk you through each step.
1. Research the Market
Start by exploring different regions to determine which location best fits your needs. Popular areas include Punta Cana for luxury beachfront properties, Santo Domingo for urban living, and Las Terrenas for a mix of relaxation and expat-friendly amenities.
2. Work with a Local Real Estate Agent
Hiring a reputable real estate agent can help you navigate the market, find the best deals, and avoid scams. An experienced agent can also provide insights into local laws and regulations.
3. Verify Property Ownership
Before making an offer, conduct a title search to confirm the property’s ownership and ensure there are no legal disputes. This is typically done through a Dominican notary or attorney.
4. Make an Offer and Sign a Promise of Sale
Once you’ve chosen a property, you’ll sign a ‘Promise of Sale’ agreement, which outlines the purchase conditions, price, and deposit (usually 10% of the property value).
5. Legal Process and Due Diligence
A lawyer will verify all documents, including property titles, tax records, and building permits. This step ensures that there are no outstanding debts or legal complications.
6. Closing and Final Payment
After due diligence, the final contract is signed, and the remaining balance is paid. The property title is transferred, and the sale is officially recorded in the Dominican Land Registry.
7. Additional Costs and Taxes
Buyers should budget for additional costs such as legal fees (1-2% of the property price), a 3% property transfer tax, and annual property taxes for high-value properties.
Final Thoughts
With transparent real estate laws and a welcoming investment environment, buying property in the Dominican Republic is a great opportunity for foreigners. By following these steps and seeking professional assistance, you can secure your dream property with confidence.
