Property for sale in Dominican Republic 25 results

Yes, foreigners enjoy the exact same property ownership rights as Dominican citizens under local law. There are no restrictions on foreign nationals buying land, villas, or condos, and you do not need residency to own property. All properties are held via freehold ownership, meaning you own both the structure and the land outright with a clear certificate of title (Certificado de Título).

Total closing costs generally range between 4% and 5% of the property value. This includes a 3% government transfer tax (Impuesto de Transferencia) and roughly 1% to 1.5% in legal and notary fees. For ongoing holdings, the annual property tax (IPI) is a flat 1% levied only on the property’s government-appraised value that exceeds an inflation-adjusted threshold (approximately USD 182,000). If the property is valued below this threshold, your annual property tax is zero.

CONFOTUR is a powerful government incentive program designed to boost tourism real estate. If you purchase a property in a development approved under the CONFOTUR law (very common in elite gated communities and beach resorts), the buyer is 100% exempt from paying the 3% property transfer tax at closing. Furthermore, the property is 100% exempt from the 1% annual property tax (IPI) for up to 15 years, significantly maximizing your net rental yields.

The transaction begins with a formal Offer to Purchase, followed by a legally binding Promise of Sale (Promesa de Venta), where a 10% to 20% escrow deposit is made. Before signing the final Sale Contract (Contrato de Venta), your local real estate attorney must conduct strict due diligence. This includes verifying the Certificado de Título at the Title Registry Office to ensure the property is entirely free of liens, checking that all previous property taxes are fully settled, and confirming the seller has the sole legal right to transfer the deed.

Short-term rentals are highly popular, fully legal, and unrestricted across major tourism hubs like Punta Cana. If you rent out your property, your rental income is subject to Dominican tax regulations:

• Non-Resident Individuals: Subject to a standard 27% withholding tax on net rental income. However, if the property is located in a CONFOTUR-approved project, this rental income tax is entirely waived for up to 15 years.

• Deductions: Under the standard tax regime, property owners can deduct legitimate operational expenses, including local property management fees, maintenance costs, and HOA fees, to lower their net taxable income