Can Canadians and Americans Buy Property in the Dominican Republic?

If you’re a Canadian or American exploring the idea of buying property in the Dominican Republic, you’re not alone — and you’re asking the right question.

I asked it myself this question when I started looking into investing in Las Terrenas. What I found was a sea of vague information, mixed advice, and way too many high-pressure salespeople telling me to “lock it in now” before the price went up. No one could clearly explain how it actually works. So I did the research, connected with lawyers, developers, and expats, and now I help others do the same.

The short answer is: yes — Canadians and Americans can legally buy property in the Dominican Republic. But there are important details you need to know to do it right.

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Can Foreigners Own Property in the Dominican Republic?

Yes. The Dominican Republic allows 100% property ownership by foreigners. You do not need Dominican citizenship or residency.

You can legally own:

• Land
• Condominiums
• Villas
• Pre-construction units

You can hold title:

• In your personal name
• As joint ownership
• Under a corporation

Property rights for foreigners are protected under Dominican law. You do not need a local partner or Dominican residency.

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How the Buying Process Works

The process is legal and accessible — but it’s not always straightforward. There’s no MLS like in Canada or the U.S., and every developer seems to have their own way of doing things. Here’s a simplified overview of how the process typically works when buying pre-construction in the Dominican Republic:

Step 1: Find a Property

Properties are listed through developers, agents, and word of mouth — often scattered across websites and social media. There’s no centralized system, which makes it hard to know what’s legitimate or still available.

That’s where I come in — I help you filter through the noise and connect you with verified, trusted developers.

Step 2: Reserve the Unit

Once you’ve selected a project, you’ll usually sign a Reservation Agreement and pay a reservation fee (often $1,000–$5,000 USD). This temporarily holds your unit while paperwork is prepared.

⚠️ Reservation fees are often non-refundable, so it’s important to be confident in the developer before proceeding.

Step 3: Hire a Dominican Lawyer

While a lawyer isn’t always involved before the reservation, I strongly recommend bringing in a qualified, independent lawyer at this stage — or earlier if you’re unsure about the project.

Your lawyer will:

• Review the Promise of Sale
• Verify land title and developer ownership
• Ensure the project is legally registered
• Guide you through contracts and protect your deposit

❗️Avoid using a developer’s in-house lawyer — always hire your own. I can make recommendations for trusted, reputable, English-speaking lawyers.

Step 4: Sign the Promise of Sale & Pay Deposit

The Promise of Sale (Contrato de Venta) is the main legal agreement. It outlines:

• Purchase price
• Payment structure (usually staged)
• Delivery timeline
• Penalties for delay
• Your rights as a buyer

At this point, you’ll typically pay 10–30% of the purchase price, depending on the developer and payment schedule.

Step 5: Make Progress Payments (if applicable)

For pre-construction, payments are usually made in milestones (e.g., 30% during construction, 40% on delivery, etc.). These should be clearly outlined in your contract.

Step 6: Close & Register the Title

Once the full purchase price is paid and the unit is ready, your lawyer will handle the closing and register the property with the Title Registry (Registro de Títulos). You’ll then receive your Certificate of Title in your name (or your company’s name, if using a corporation).

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What Kind of Title Will You Receive?

You’ll receive a Certificate of Title — the Dominican equivalent of a land title. You want to make sure you’re purchasing titled property.

❌ Avoid:

• Derecho Posesorio (untitled land or squatter’s rights)
• Properties not yet legally subdivided or registered

Stick with clean, titled land unless your lawyer advises otherwise.

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Taxes, Fees, and CONFOTUR

Buying property in the Dominican Republic comes with fewer taxes than you might expect — and in some cases, none at all, thanks to a government incentive called CONFOTUR.

Here’s what you need to know:

What is CONFOTUR, and Why Should You Care?

CONFOTUR is the Tourism Incentive Law (Law 158-01). It’s a government program that encourages investment in tourism-focused developments by offering major tax breaks to buyers.

If you’re purchasing in a Confotur-approved development, you may qualify for:

• No transfer tax at closing
• No annual property tax (IPI) for up to 15 years

Many of the best-known resort-style and pre-construction projects in Punta Cana, Cap Cana, Las Terrenas, and other coastal areas are registered under CONFOTUR.

Not every development qualifies — but I’ll always let you know which ones do.

One-Time Closing Costs

• Transfer Tax:
  Typically 3% of the government-assessed value of the property. Waived if the property is part of a CONFOTUR-approved project.
• Legal Fees:
  Expect to pay 1% to 1.5% of the purchase price for a qualified Dominican lawyer to handle title search, contract review, and registration.
• Notary & Title Registration Fees:
  Usually modest and included in your legal fee structure.

Annual Property Taxes (IPI)

• 1% annual tax on the value of your property above RD$9.5 million (~$160,000 CAD / ~$120,000 USD)
• Calculated on the excess amount above that threshold

If your property is CONFOTUR-approved, you’re exempt from IPI tax for up to 15 years.

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What to Watch Out For

Here are some common (and costly) mistakes I see:

• Buying untitled or unregistered property
• Using the developer’s in-house lawyer
• Falling for high-pressure sales tactics
• Paying a deposit without a legally binding contract
• Assuming every project is “safe” because it’s advertised well

These are the exact reasons I started Own Dominican.

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How I Help Buyers Like You

I created Own Dominican after going through the process myself. I’ve since built relationships with vetted developers, independent lawyers, and expat investors. I help Canadians and Americans:

• Understand the buying process clearly
• Identify safe, reliable projects
• Get connected with English-speaking legal and real estate professionals
• Avoid the red flags and confusion that cause so many buyers to get burned