Frequently Asked Questions

Over time we hear a lot of the same questions about property ownership and specifically purchasing a property for sale in the Dominican Republic. To help answer these questions more rapidly, we have captured some of them here. If you have questions that we have not answered here, please contact us and we will be happy to get answers for you.

Where can I get some unbiased facts on the Dominican Republic?
For general travel tips and information we suggest Lonely Planet or DR1. For specific information on the Dominican Republic compiled by the US Government we suggest the CIA Factbook.

Can a non-Dominican individually own property in the Dominican Republic?
Yes. The Dominican government welcomes foreign ownership and has passed many laws over the years to both encourage and protect foreign investors.

I hear a lot about Punta Cana, Samana and La Romana but I do not hear much about the Cabrera area. Why is that?
Many of the largest developments in the Dominican Republic are reflected in those names so there are huge marketing and advertising dollars being spent to convince people to buy a vacation home there. Contrary to this, Cabrera remains very much a 'pure' Dominican town and culture without the thousands of tourists overwhelming the community.

Are you registered real estate agents in the Dominican Republic?
The Dominican Republic does not have the same legal structure within the real estate agency market as is found in, say, North America. It is not necessary to obtain a real estate license in the Dominican Republic. You should always deal with those who are established businesses with credentials and referernces of past customers to assure you are obtaining the best services.

Should I retain an attorney in the US or the Dominican Republic to aid in the purchase of my property?
We suggest you retain an attorney in the Dominican Republic with demonstrated experience in real estate transactions. Your US attorney may be able to guide you to one, there are referral systems in the legal community, or we can provide you a list of those we have found to be highly reputable and reliable. But you should definitely have an attorney to help protect your rights in any real estate transaction.

When I purchase real estate should I put it in my own name or in the name of a company?
Generally speaking this is a choice made based on two elements; liability and resale. A property contained within a corporation does provide you with the 'corporate shield' to protect you against unforeseen liability issues (such as if you rent your property). For resale, when your property is sold to another person you are able to transfer the company to them instead of actually transferring the real estate so the buyer saves the real estate transfer tax. If you do this, remember to consider this when negotiating!

When I do purchase real estate in the Dominican Republic what is the proof of ownership I obtain?
You receive a title, just like in your home country. The title is issued by the government and in the name of the entity (or person) owning the property.

Is it possible to obtain title insurance in the Dominican Republic?
Yes. Stewart Title, First American Title and others offer their services here. Additionally, the government of the Dominican Republic also insures any title issued through a law that was passed specifically to help assure investors that these titles are valid and backed by the full faith and confidence of the government.

As a buyer, are there real estate transfer taxes I need to consider?
If you are purchasing a corporate entity owning the property then you will incur no real estate transfer taxes. If you are purchasing from an individual, the transfer of real estate is subject to the payment of the following taxes. 4% of the purchase price plus 12% of that tax amount and some additional relatively minor processing fees.

Are there property taxes in the Dominican Republic?
Yes but they are either very low or non-existent along the north coast of the island. Property taxes will come in the future, tho, but for now you should consider them to be little or nothing.

Do I need to pay income taxes in the Dominican Republic?
Typically, no. The Dominican tax code only requires payment of taxes on income generated from within the Dominican Republic. Unless your property generates income here, there are no income taxes applicable.