Buying property in the Dominican Republic as a foreigner takes about 60 to 90 days from accepted offer to recorded deed, with closing costs running 5 to 8 percent of the purchase price — or just 2 to 4 percent if the property qualifies for Confotur, the country's tourist-zone tax incentive. You take direct freehold title in your own name, registered in the Jurisdicción Inmobiliaria under a Torrens-style system where the registered title itself is conclusive evidence of ownership. Settlement happens in either US dollars or Dominican pesos, and the transaction runs through a notario who authenticates the deed alongside your own attorney handling due diligence and registration.
Four things move the needle on a DR purchase. Confotur is the headline incentive: a 15-year exemption from the 3 percent transfer tax (ITBI) and the 1 percent annual property tax (IPI) on qualifying property in designated tourist zones. Deslinde is the country's cadastral demarcation process that confirms exact property boundaries, and an incomplete deslinde is the most common DR-specific title risk you'll face. The 2022 Hurricane Fiona aftermath still surfaces in condition reports and insurance gaps along the northern coast. And the 27 percent non-resident rental withholding is the highest of any major foreign-buyer destination — worth modeling carefully if rental income is part of your thesis.
Stage 1: scoping and pre-offer prep
Before the offer, lock down financing, pick an attorney, and verify Confotur status of the target property if it's relevant.
Budget. All-in cost varies substantially by Confotur status. On a non-Confotur transaction, the math is purchase price plus 5 to 8 percent in closing costs plus minimal-to-zero FX cost (USD-direct settlement is common) plus a contingency reserve — on a $300,000 USD purchase, total cash at closing typically lands at $315,000 USD to $325,000 USD. On a Confotur-qualifying transaction, the 3 percent ITBI exemption removes the dominant closing-cost component, dropping closing costs to 2 to 4 percent. The same $300,000 USD purchase drops to $306,000 USD to $312,000 USD.
Financing. Three paths. Cash purchase is dominant for most foreign buyers, particularly at Confotur entry tiers. Dominican bank financing is available to foreigners at moderate rates, typically 7 to 10 percent with 50 to 65 percent LTV.[Banco Central de la República Dominicana, mortgage market overview, 2026-04] Cross-border USD financing through specialized lenders is the third path.
Attorney. Dominican real estate transactions strongly favor a buyer-engaged attorney through due diligence, contract negotiation, and registration. Your attorney is distinct from the notario (the public officer who authenticates the deed). Look for verified Colegio de Abogados de la República Dominicana membership, foreign-buyer transaction experience, Confotur experience if the target is in a tourist zone, and English-language communication.
Cross-border money movement. USD wires from US banks to Dominican USD beneficiary accounts settle at minimal cost. For Canadians, Norbert's Gambit through a discount brokerage typically beats a Canadian bank wire — see /canadians/buying-property-abroad/.
Stage 2: the deslinde check (do this BEFORE the offer)
The DR has a specific title risk most foreign buyers walk past: deslinde, the cadastral de-marking process that surveys and registers exact property boundaries. Older Dominican titles often pre-date modern deslinde practice, which means the boundaries on the title may not match what's physically on the ground.
Incomplete deslinde is THE DR title risk. It shows up in older inland inventory, in parcels split from larger family holdings, and on some Sosúa/Cabarete legacy plots. The fix is not impossible — deslinde can be completed retroactively — but it's time, cost, and bureaucracy you don't want to discover after closing.
Before any offer, your attorney should pull the estudio de título (title study) from the Jurisdicción Inmobiliaria and confirm the property has been deslindado (de-marked) with current boundaries registered in the Torrens-style system. If the deslinde is incomplete, factor the remediation cost and timeline into the offer — or walk.[Jurisdicción Inmobiliaria Dominicana, title registry framework and deslinde, 2026-04]
Stage 3: the offer and the Promesa de Venta
A foreign-buyer offer is captured in an offer letter, then a binding Promesa de Venta (Promise of Sale) before the final Acto de Venta (Deed of Sale). The Promesa specifies the purchase price (USD typical for foreign-buyer transactions), closing date, deposit (typically 10 percent of purchase price), contingencies (clean title and complete deslinde, inspection, financing if applicable, due diligence period), default penalties (typically the deposit as the buyer-default penalty), and a Confotur status verification clause when applicable.
The deposit is held in escrow — typically your attorney's escrow account or an independent escrow service.[Dominican real estate practice, standard Promesa contract structure, 2026-04]
Stage 4: due diligence
Due diligence runs 30 to 60 days from Promesa signing, with five workstreams happening in parallel.
The first is title and chain-of-title verification (estudio de título), with deslinde confirmation. Your attorney runs a Title Registry search confirming the seller's clear title and surfacing any liens, encumbrances, or chain-of-title issues, AND confirming complete deslinde. The Jurisdicción Inmobiliaria operates a Torrens-style title system — registered title is conclusive evidence of ownership when deslinde is complete.
The second is Confotur status verification when applicable. Your attorney verifies the property's Confotur designation and exemption status with MITUR (Ministerio de Turismo). Confotur incentives are property-specific — they typically apply to qualifying developments rather than entire geographic zones — so verification confirms which incentives apply (ITBI exemption, IPI exemption, duration) and any conditions.[MITUR, Confotur framework verification, 2026-04]
The third is physical inspection by a credentialed inspector for structural, electrical, plumbing, and major-systems review. Tropical-climate items (termite, pest, septic, well-water if applicable) are essential. For Puerto Plata, Cabarete, Sosúa, and Las Terrenas, ask explicitly about Hurricane Fiona (September 2022) damage and remediation — some inventory still has unrepaired or under-disclosed storm impact in roof systems and drainage.
The fourth is property tax and HOA verification — confirming the seller is current on annual IPI (when applicable) and any HOA dues. The fifth is title insurance, which is optional. Available from US-based insurers (Stewart Title, First American), it's less commonly used than in markets without a Torrens-style registry, but useful for properties with any deslinde or chain-of-title complexity.
For properties with corporate-ownership structures (less common in DR than in Costa Rica or Panama, but available), additional due diligence on the corporate entity is needed.
Stage 5: closing preparation
In the two to three weeks before closing, several things happen at once. The notario prepares the Acto de Venta (deed) draft, pulling in the title-search results, your information, and the closing-cost numbers; you (or your attorney) review it. You arrange the funds transfer — USD wires to your attorney's escrow account or a US-based escrow company, with funds arriving 5 to 7 business days ahead of closing.
ITBI gets paid before registration when applicable. The 3 percent ITBI is paid through DGII; for Confotur-qualifying property, the exemption is documented and ITBI isn't paid. Insurance also gets put in place. Dominican homeowners' insurance is widely available, but for coastal properties hurricane coverage is essential — and a separate rider with significant deductibles. Post-Fiona, premiums on northern-coast property have moved up.
Stage 6: signing and closing day
Closing happens at the notario's office, or via apostilled power of attorney if you can't be present. Buyer and seller sign the Acto de Venta. The notario authenticates and your attorney submits to the Title Registry for registration. Funds disburse at signing — the notario confirms the wire receipt, pays out ITBI (if applicable), registry fees, the seller's net proceeds, and any pro-rated property tax or HOA dues. The deed is registered at the Title Registry over the following 30 to 90 days. Effective ownership begins at signing.
Stage 7: post-closing
A handful of items run in the 30 to 90 days after signing. The registry verifies and registers, returning the registered title (Certificado de Título) to you. Utilities transfer to your name: water (varies by municipality), electricity (Edenorte, Edesur, or Edeeste depending on region), and others. DGII updates IPI records when applicable; the Confotur exemption removes IPI for the exemption period.
A Dominican will is worth doing. Foreign buyers should consider executing one to cover the Dominican-situs property within the first year. Dominican succession law applies forced-heirship rules — children are typically entitled to a reserved share regardless of will provisions — so cross-border estate planning is essential, particularly for blended families or non-traditional inheritance plans.[Dominican Civil Code on succession and will formalities, 2026-04]
Last, get tax reporting set up. US buyers should notify their tax preparer; Canadian buyers should notify their preparer of T1135 reporting. See /dominican-republic/taxes-american-buyers/ and /dominican-republic/taxes-canadian-buyers/.
Closing cost line items
On a typical Dominican foreign-buyer transaction, the closing cost stack looks like this:
- ITBI (transfer tax): 3 percent of registered value. Paid to DGII. Confotur-exempt for qualifying property in designated tourist zones for 15 years.[DGII, ITBI framework, 2026-04]
- Title Registry registration fees: typically 0.5 to 1 percent of purchase price.
- Notary fees: typically 0.5 to 1 percent of purchase price.
- Buyer's attorney fees: typically 1 to 1.5 percent of purchase price.
- Title search and due diligence: typically included in the attorney fee or billed separately at $500 USD to $1,500 USD.
- Property inspection: $300 USD to $800 USD.
All-in closing cost typically lands at 5 to 8 percent of purchase price for non-Confotur transactions; 2 to 4 percent for Confotur-qualifying. The Confotur framework is materially favorable when applicable.
Holding-cost framework
Annual carrying costs on a Dominican property:
- IPI (annual property tax): 1 percent of property value above the exempt threshold (RD$ 9 million as of recent years). Confotur-exempt for qualifying property for 15 years.[DGII, IPI framework, 2026-04]
- Insurance: $400 USD to $1,500 USD annually depending on property type and hurricane coverage. Post-Fiona, coastal premiums have moved up.
- HOA dues (if applicable): variable by development.
- Utilities: ongoing operational costs.
- Income tax on rental income (if rented): 27 percent on gross rental income for non-residents — highest of the major foreign-buyer destinations.
What goes wrong (and how to avoid it)
Four failure modes recur across foreign-buyer Dominican transactions. Closing on property with incomplete deslinde is the biggest — the cadastral de-marking gap in older inventory means boundaries aren't definitively registered. Confirm with the estudio de título before deposit.
Confotur misrepresentation is the second. Some properties advertise Confotur status that doesn't actually apply, or that applies to limited components only. The Confotur designation is property-specific, so verify with MITUR through your attorney before underwriting on the preferences.
Skipping the buyer's attorney role is the third. The notario authenticates; the buyer's attorney represents. Buyers who try to economize lose buyer-specific protection.
The fourth is underestimating apostille and POA timing. If you're closing via power of attorney, the POA preparation, apostille, and shipping to DR all need to be done before closing.
Most buyers we work with subscribe to our /newsletter before they start their DR search — the monthly market read covers Confotur designation changes, deslinde practice updates, and regional pricing pulse.
For broader country context, see /dominican-republic/. For tax framework, see /dominican-republic/taxes-american-buyers/ (US persons) or /dominican-republic/taxes-canadian-buyers/ (Canadian persons).
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Dominican real estate transactions involve civil code, registration requirements, and notarial practice. Engage a Dominican attorney with cross-border practice and a Dominican notary public (notario) before signing.
Current as of 2026-08-04. We review legal content quarterly and update on rule changes. To report an error, contact us.