Investment property: Dominican Republic

Updated 5 October 2026

The Dominican Republic is the largest resort property market in the Caribbean.

Demand centres on tourist areas - Punta Cana, Cap Cana, La Romana, Las Terrenas - and the capital Santo Domingo. Foreigners buy property on the same terms as citizens without special permits, and title is registered in the state title registry. Resort prices are usually quoted in US dollars.

Where people buy and why

• Punta Cana and Bávaro - condos in complexes for tourist rentals, the largest market.
• Cap Cana and La Romana - gated resorts with villas and golf courses, the top segment.
• Santo Domingo - long-term rentals to company and embassy staff, year-round demand.
• Las Terrenas and the Samaná peninsula - small villas and condos, many European buyers.
• Puerto Plata and Sosúa in the north - more affordable prices and homes for retirees.

Purchase taxes and costs

Annual tax and tourism project incentives

Individuals pay an annual property tax (IPI) of 1% on the combined value of their property above an exempt threshold - in 2026 about RD$10.7 million, or roughly $175,100. Properties in tourism projects approved under tourism development Law 158-01 are exempt from transfer tax and annual property tax for 15 years. So we check the project's status before reservation.

How to check title

• The title certificate in the title registry and a cadastral plan with approved boundaries.
• No mortgages, liens or disputes on the property.
• A tax office certificate of no property tax arrears.
• For new builds, building permits, the project's status and a contract with a payment schedule.
• For tourism project properties, the incentive approval.

How the deal works

• A deposit or reservation agreement with inspection conditions.
• Legal due diligence and the sale contract.
• Payment by transfer, the 3% transfer tax and registration in the title registry.
• A new title certificate in your name.

Resale homes usually complete in 1-3 months; new builds follow the construction schedule.

Residence through property

Buying a home for $200,000 or more can support investor residence in the Dominican Republic, and retirees with a pension of $1,500 and passive income earners with $2,000 a month have separate programmes under Law 171-07. We plan the purchase and residence together so the deal documents fit the application.

Letting

Rental income is subject to income tax, and short-term tourist lets require registration and payment of taxes, some of which platforms withhold themselves. Demand in Punta Cana and on the coast is high but seasonal, so we calculate returns month by month including management.

Common buyer mistakes

• Buying without an approved cadastral plan and title certificate.
• Expecting tourism incentives from a project that never received them.
• Paying cash or into an intermediary's personal account.
• Projecting returns without the annual tax and management costs.

What we do

We choose a property for your goal: tourist rental, own home or residence. We check title, cadastre and project incentives with a local lawyer, calculate taxes and costs, open a dollar account at a Dominican bank, handle the deal and registration, and tie the purchase to residence.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account · All country programs

FAQ