Updated as of March 2026. This content is informative and based on local market experience. It does not substitute for professional legal, tax, or financial advice.
The Dominican Republic is one of the few countries in the Caribbean where a foreigner can buy property with the same rights as a Dominican citizen. No quotas, no zone restrictions, no maximum ownership percentages.
If you are considering investing in Cabrera or any other area of the country, the legal framework is not the obstacle. What matters is knowing how to do it right.
Can foreigners buy property in the Dominican Republic?
Yes, without restrictions.
The Constitution of the Dominican Republic and Law 108-05 on Real Estate Registration ensure that foreigners have the same rights as citizens to acquire, register, and sell real estate.
There are no prohibited zones for foreigners, no limits on the number of properties, and residency is not required to buy.
Legal Advantages for Foreign Investors
1. Equality of Rights with Nationals
A buyer from the United States, Canada, Europe, or any other country has exactly the same legal rights over a property as a Dominican. This includes:
- Title registration in your name
- Right to sell, inherit, or mortgage the property
- Access to the same courts and legal mechanisms
2. No Restriction on Capital Repatriation
Law 16-95 on Foreign Investment allows foreign investors to freely repatriate:
- The invested capital
- The generated profits
- The dividends
This means that if you buy a property and sell it years later for a profit, you can take that money out of the country without legal restrictions.
3. Protection Under International Treaties
The Dominican Republic has bilateral investment agreements with several countries that offer additional protection to foreign investors against arbitrary expropriations and guarantee fair treatment under international law.
4. CONFOTUR Law — Tax Incentives for Tourism Development
If the property qualifies under Law 158-01 on Tourism Promotion (CONFOTUR), the foreign investor can access:
- Exemption from the real estate transfer tax (normally 3%)
- Exemption from IPI for up to 15 years
- Exemption from taxes on dividends and interest generated by the project
Not all properties qualify — it depends on the area and type of development. It’s a benefit worth verifying on a case-by-case basis.
What Requirements Are There to Buy?
The process is simpler than many expect.
Basic Documents
- Valid passport
- Tax identification number (RNC) — managed at the DGII and the process is relatively quick
- Funds for the purchase and related costs
Costs to Consider
- Real estate transfer tax: 3% of the property value (may be exempt under CONFOTUR)
- Legal fees: between 1% and 2% of the property value, depending on the attorney
- Closing and registration expenses: variable according to the transaction
Do You Need Residency?
No. You can buy, register, and legally own a property in the Dominican Republic with just your passport, without the need for residency or special visa.
What Should You Verify Before Buying?
The legal framework is favorable, but as in any market, execution matters.
Before closing any purchase, it is essential to:
- Verify the property title in the corresponding Title Registry
- Confirm that there are no liens, mortgages, or lawsuits on the property
- Review the boundary to confirm the physical limits of the property
- Work with an independent local lawyer — not the same one representing the seller
These steps are not exclusive to foreigners. They are the correct process for any buyer, Dominican or not.
Conclusion
The Dominican Republic offers a clear and favorable legal framework for foreign investors. With no access restrictions, the freedom to repatriate capital, and tax incentives available for certain projects, the country is designed to attract international investment.
What makes the difference is not the country — it is doing the process right: verifying the title, understanding the actual costs, and having trusted local guidance.
Frequently Asked Questions
Do I need residency to buy property in the Dominican Republic?
No. You can purchase with your passport without the need for residency or a special visa.
Can I take my money out of the country if I sell the property?
Yes. Law 16-95 allows the free repatriation of capital and the profits generated by foreign investors.
What is CONFOTUR and how do I know if it applies to my property?
CONFOTUR is the tourism incentive law that can exempt the buyer from the transfer tax and IPI for up to 15 years. Not all properties qualify, it depends on the area and project. Consult with a local lawyer to verify.
What happens if I buy and want to pass the property on to my children?
The property can be inherited normally under Dominican law, regardless of the heirs' nationality.
What is the most common legal risk for foreigners?
Buying without properly verifying the title. It is the most frequent and most costly mistake. Always work with an independent lawyer who reviews the Title Registry before closing.
Sources
- Constitution of the Dominican Republic
- Law 108-05 on Real Estate Registration
- Law 16-95 on Foreign Investment
- Law 158-01 on Tourism Promotion (CONFOTUR)
- General Directorate of Internal Taxes (DGII) — https://dgii.gov.do/
Author
Jeffrey Seda Seda Realty, Cabrera, Dominican Republic