Can Foreigners Own Property in Dominican Republic? The 2026 Legal Guide
Yes, foreigners can own property in the Dominican Republic, and they hold the same ownership rights as Dominican citizens. There is no restriction on foreign ownership of real estate, no requirement to take a local partner, and no need to set up a company simply to buy a home. A foreign buyer can own land, a villa, or a condominium outright and in their own name.
That equality of rights is the easy part. The detail that protects your money is the title system, the taxes, and the structures you use. This guide covers the essentials as they stand in 2026.
The title system: Law 108-05 and the Certificado de Titulo
Dominican real estate is governed by Law 108-05 on Real Estate Registration (Registro Inmobiliario), enacted in 2005, which modernized the old 1947 land law and runs on a Torrens system. Under a Torrens system, the state guarantees ownership as recorded in the registry. The definitive proof of ownership is the Certificado de Titulo, an official document issued by the Registro de Titulos.
The real estate jurisdiction (Jurisdiccion Inmobiliaria) has three parts that every buyer should recognize: the Land Courts (Tribunal de Tierras), which resolve property disputes; the Registro de Titulos, which records ownership; and the Direccion Nacional de Mensuras Catastrales, which handles surveys. Your attorney will interact with all three.
Law 16-95 and how you hold the title
Law 108-05 sits alongside Law 16-95 on Foreign Investment, which guarantees the right to repatriate invested capital, sale proceeds, and rental income in freely convertible currency. There is no foreign buyer licence, no nationality cap on the type or location of property, and no minimum investment threshold.
You can hold in your own name, through a Dominican SRL (Sociedad de Responsabilidad Limitada), or through a foreign company. The SRL is the common choice for rental property and estate planning. A foreign company is permitted but complicates tax reporting in its home jurisdiction.
Deslinde: insist on a surveyed title
Not all titles are equal. A property can have a deslindado Certificado de Titulo, meaning it has been surveyed and its exact boundaries are individualized and registered. Or it can have only a Constancia Anotada, which recognizes that you own a portion of a larger unsurveyed parcel without delimiting exactly which part. The Constancia Anotada has historically been a frequent source of fraud and boundary disputes, and such titles carry an express warning that they cannot be transferred without first completing the deslinde (the survey and individualization process). Buy a property with a clean deslindado title where possible. If a deal involves only a Constancia, understand that you may have to fund and complete a deslinde before you fully control your land.
The taxes you will pay
Two taxes matter most at purchase and ownership.
The property transfer tax (impuesto de transferencia inmobiliaria) is 3 percent of the higher of the purchase price or the government assessed value (valor fiscal). It is paid when the title is transferred into your name. Without paying it, the Registro de Titulos will not issue a new Certificado de Titulo.
The annual property tax is the IPI (Impuesto al Patrimonio Inmobiliario), charged at 1 percent on the portion of value that exceeds an annually adjusted exemption threshold. As of January 2026 that threshold is roughly RD 10,695,494, or about 182,000 US dollars. Real estate valued below the threshold is exempt, and the 1 percent applies only to the amount above it.
CONFOTUR: Law 158-01 incentives
Many new resort and tourism zone projects are approved under the Tourism Incentive Law 158-01, administered through CONFOTUR. A property with CONFOTUR approval is generally exempt from the 3 percent transfer tax at purchase and from the annual IPI for up to 15 years. Foreign buyers qualify on the same terms as Dominicans. CONFOTUR status attaches to an approved project, not to you, so confirm in writing that the specific unit you are buying carries the approval before relying on those savings.
The CONFOTUR package runs wider than the transfer tax and the IPI. Certified projects can also carry up to 10 years of exemption from income tax on rental income and exemption from capital gains tax on a resale during the incentive period. Ask for the CONFOTUR resolution issued by the Ministry of Tourism for your specific project rather than accepting a sales brochure claim.
Residency through investment
The Dominican Republic does not sell citizenship, but it offers a residency by investment route. A qualifying real estate investment of at least 200,000 US dollars can support an investor (inversionista) permanent residency application. The investment is certified through ProDominicana using your registered Certificado de Titulo and proof that funds moved through Dominican banking channels, after which the Direccion General de Migracion issues the residency card. Investor residents can later pursue naturalization, with a reduced track for property owners contingent on a Spanish language interview and oath. Residency is optional. You do not need it to own property.
How a clean purchase actually happens
In practice, a sound transaction looks like this. You retain an independent Dominican attorney who works only for you, not the seller or the agent. They run a title search at the Registro de Titulos to confirm the Certificado de Titulo is genuine, current, and free of mortgages, liens, or pending litigation in the Tribunal de Tierras. They verify the deslinde and that boundaries match reality. A promise of sale (contrato de promesa de venta) sets the terms, the transfer tax is paid, and the new Certificado de Titulo is issued in your name.
Documents, costs, and timing
Beyond your passport, you need an RNC taxpayer number from the Direccion General de Impuestos Internos, and a power of attorney notarised and apostilled in your country of origin if you cannot attend the signing. Keep the wire confirmations for any funds sent from abroad.
Budget for more than the 3 percent transfer tax. Notary fees run around 1 percent of contract value and legal fees typically 1 to 1.5 percent of the purchase price. The promesa de venta usually carries a 10 percent deposit and binds both sides. Capital gains on a later resale are taxed at the 27 percent corporate rate or up to 25 percent for individuals unless CONFOTUR applies. A resale of an existing build normally closes in 60 to 90 days, and pre-construction takes longer.
The Dominican Republic has no title insurance industry and no national licensing regime for agents. Both facts put the entire verification burden on the lawyer you hire.
Bektu is a transparency platform built to help foreign buyers check this information before signing, not after. Your equal ownership rights are real and protected. The discipline that turns those rights into a clean title is the title search, the deslinde, and an attorney who answers to you.
Sources
- Law 108-05 of Real Estate Registration, PortalInmobiliarioRd
- How to read a Dominican Republic title certificate, Cana Law
- Real Estate Property jurisdiction, Arthur and Castillo Lawyers
- Real Estate Property Tax (IPI) 2026 guide, Punta Cana Villa
- The real cost of buying property in the Dominican Republic, Cana Law
- Understanding the CONFOTUR Law, ICLG
- Dominican Republic Permanent Residence by Investment, Henley and Partners
- Difference between Constancia Anotada and Certificado de Titulo, ASVEN
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