The Dominican Republic welcomes millions of tourists each year and is the leading investment destination in the Caribbean, a country open to all cultures. There are no restrictions for foreign investors to own real estate. In fact, the ecosystem of laws and regulations offers a series of strategic advantages that surpass other Latin American countries. Therefore, both foreign individuals and legal entities can buy, sell, and own real estate.

As a buyer, you must pay the Transfer Tax, which is 3% of the value registered with the General Directorate of Taxes in the Dominican Republic or the purchase price indicated in the Sale Contract.

Law 158-01 and its amendments provide certain fiscal benefits and incentives to real estate projects, businesses, and commercial activities in the country's tourist areas for a period of 15 years. Any real estate project that benefits from the exemptions granted by this law will benefit the first buyers through the exemption of the 3% Transfer Tax for the registration and transfer of the title certificate to their name, as well as the 1% Real Estate Property Tax (IPI).

When purchasing a property in the Dominican Republic, you will need to pay an annual real estate property tax (IPI) of 1% on the value exceeding RD $9,520,861 (approximately US $175,000.00). If the combined value of all your real estate properties is below the established threshold, you are exempt from this tax. If it exceeds the threshold, you will pay on the difference. THIS APPLIES TO INDIVIDUALS/NATURAL PERSONS AND DOES NOT APPLY TO COMPANIES OR LEGAL ENTITIES.

The Dominican Republic is one of the Latin American countries with the lowest capital gains tax rates. Foreign individuals pay 27%, but with proper tax advice, this rate can potentially be reduced to as low as 8%.

The Certificate of Title is the document that validates your property ownership rights. This title is issued by the Title Registry and is the official document of the Dominican State that provides legal proof of your property's ownership.

The buyer is responsible for all expenses related to obtaining the property title (tax payments, legalizations, etc.).

If opting for a mortgage loan to purchase the property, the buyer must also pay the bank's fees and indicated expenses.

• Present two forms of identification (a valid passport as the primary document).
• Complete the “Know Your Customer” form.
• Provide documentation proving the authenticity of the funds used to purchase the property (employment letter or, for merchants, proof of business existence and operation).
• Bank account statements from the last three (3) months.
• Annual tax declarations, preferably for the last two (2) years.

The Dominican Republic grants special incentives to foreign individuals and Dominican nationals residing abroad who contribute to a company operating in the Dominican Republic. These incentives are aimed at foreign investors intending to make economic investments.

Investor Visa: For foreigners intending to make economic investments, with a minimum amount of US$200,000.00.

Retiree or Rentier Visa: For individuals who justify fixed monthly incomes as follows: USD$1,500.00 from pensions and USD$2,000.00 from rental income. Additionally, they are allowed to work in paid activities and declare these incomes in the country. In both cases, they receive residency as a foreign investor and the following benefits:

• Exemption from import taxes for motor vehicles.
• 50% exemption from the Real Estate Property Tax (IPI) when applicable.
• 50% exemption from Capital Gains Tax, provided the rentier is the majority shareholder of the company.

As a foreigner, you will have free access to Dominican commercial banking. No special requirements are needed other than those requested by the bank, provided you comply with the country's Anti-Money Laundering and Counter-Terrorism Financing Law "Law No. 155-17".

• Opening of savings and checking accounts (personal and commercial)
• Credit prequalification
• Real estate loans
• Various credit and investment portfolio products

• Personal and commercial savings and checking accounts
• Currency types: US dollars, Dominican pesos, and euros

• Demonstrate budget for the reservation and payment capacity, which can be up to 40% of your net income.
• Present tax payments for the last two (2) years.
• Provide six (6) months of bank account history.
• Proof of at least one year of employment, whether salaried, self-employed, or business owner (employment certification and/or financial statements, annual tax report).
• Identification documents (valid passport and ID).
• Financing up to 50% of the property value.
• Annual average interest rates of 7.85% (subject to change according to the economic and financial environment and the banking institution).