Non-Resident Ownership Rules
Can you — as a foreigner — own property in the Dominican Republic? Yes. Here's exactly what that means, what's permitted, and what structures to use.
The short answer
Foreign nationals have the same freehold property ownership rights as Dominican citizens. There are no restrictions on nationality, no limits on the number of properties you can own, and no mandatory local partner requirement. The DR actively encourages foreign investment.
Freehold title — what it means
When you buy DR property as an individual, you receive a certificado de título (title certificate) in your name. This is a freehold title — perpetual ownership with no expiry, no requirement to occupy or develop, and no automatic reversion to the state. It can be sold, inherited, mortgaged, or gifted. It is legally equivalent to the title held by a DR citizen.
Ownership structures available to foreigners
Individual ownership
Simplest. Full IPI exemption threshold applies. No corporate filings. Direct title.
Estate complexity if you die without a DR will. Potential personal liability exposure.
Dominican SRL (LLC equivalent)
Liability protection. Estate planning flexibility. Can have multiple owners/partners.
Loses the individual IPI exemption threshold — full 1% applies to total assessed value. Annual filings required.
Dominican SA (Corporation equivalent)
Useful for large developments or multiple properties. Share structure allows easy transfer.
More complex and expensive to maintain. Same IPI disadvantage as SRL.
Fideicomiso (Trust)
Common for estate planning. Can designate beneficiaries directly, bypassing probate. Used by developers for pre-construction sales.
More expensive to establish. Tax treatment depends on structure. Legal counsel essential.
The maritime zone restriction
The only significant ownership restriction in the DR applies to everyone equally — foreign and domestic. The 60-meter maritime zone from the mean high-tide line is public land that cannot be privately owned. No individual or corporation can hold freehold title to this strip. Properties with structures in this zone have a defective title. Always verify maritime zone boundaries before purchasing beachfront property.
Inheritance and estate planning
DR property follows DR succession law, not the law of your home country, unless you have a valid DR will (testamento). Without one, the property passes according to forced heirship rules that allocate fixed shares to children and spouses — regardless of what your home-country will says. We strongly recommend all foreign buyers execute a Dominican will at the time of purchase. Cost: approximately $300–500 USD.
Currency and repatriation
There are no restrictions on repatriating the proceeds of a property sale. You can receive payment in USD or DOP, convert freely, and wire funds abroad. The DR has no capital controls on real estate transactions. Gains from property sales are subject to a 27% capital gains tax, applied to the difference between the registered sale price and the adjusted cost basis. Proper structuring at purchase can reduce this exposure significantly.
Practical checklist for foreign buyers
- Confirm no maritime zone encroachment via professional survey
- Order a full title search before signing any contract
- Decide on ownership structure (individual vs. SRL vs. fideicomiso) before closing
- Execute a Dominican will at or before closing
- Verify CONFOTUR status if IPI exemption is a priority
- Use an escrow account for all deposits — never pay directly to seller
- Confirm DGII registration of your title within 90 days of closing
Get the structure right from the start
Choosing the wrong ownership structure costs more to fix later than to get right now. Our attorneys advise on structure, tax implications, and estate planning before you sign anything.