Buying Property in the Dominican Republic: The 2026 Guide for US and Canadian Buyers

A three-hour flight from New York, a two-percent-of-value annual tax bill on much of the market, and full freehold ownership in your own name with no residency required. For a growing number of North American buyers, the maths of owning in the Dominican Republic is starting to look better than a second home in Florida or the Carolinas.

That doesn't make it a simple purchase. The process runs on Dominican law, a different title system, and a tax incentive most first-time buyers have never heard of. This guide walks through the whole journey, from deciding where to buy to holding the title, written for buyers coming from the US and Canada.

Can foreigners buy property in the Dominican Republic?

Yes, and with fewer restrictions than most Caribbean markets. Foreign nationals have the same ownership rights as Dominican citizens. You can hold freehold title (full ownership, not a lease) directly in your own name, there's no residency requirement, and there's no separate foreign-buyer tax or surcharge.

That equal footing is unusual in the region, and it's a large part of why the Dominican Republic attracts more North American property capital than its neighbours. There are practical steps that protect an overseas buyer (a proper title search and a local attorney chief among them), but the legal right to own is not in question. Our guide to legal and due diligence covers the safeguards in detail.

New-build versus resale: why Propuno focuses on new construction

Propuno lists new construction only. That's a deliberate choice, and it matters for a foreign buyer.

New developments are where the country's tax incentive lives (more on CONFOTUR below), where build quality and management standards are most predictable, and where developer payment plans let you spread cost across the construction period rather than financing the whole sum up front. Off-plan and under-construction stock also tends to carry pre-completion pricing, so the entry point is lower. If you're weighing the trade-offs, our guide to buying off-plan explains how staged payments and completion timelines work.

Where North American buyers are buying

The Dominican Republic isn't one market, it's several, and the right region depends on whether you want rental income, a retirement base, or a lock-up-and-leave holiday home.

The eastern coast around Punta Cana is the entry point for most first-time buyers: the widest choice of direct flights from North America, the deepest new-build pipeline, and the strongest short-let rental demand. Cap Cana, the gated marina and golf community at its eastern tip, is the premium end, home to branded residences and villas. On the north coast and the Samaná peninsula, Las Terrenas draws lifestyle-led buyers who want an established, walkable beach town.

If you're not sure which fits, tell us your budget and how you plan to use the property, and we'll shortlist developments that match. Start the Property Finder and we'll do the filtering for you.

What it costs to buy: taxes, fees and the CONFOTUR advantage

Budget for three things beyond the purchase price: the transfer tax, closing costs, and the annual property tax you'll pay as an owner.

The property transfer tax is 3% of the government-appraised value, paid when title transfers into your name. Legal fees typically run around 1% to 1.5%, and there are smaller notary and registration costs on top. As a working figure, closing costs of roughly 4% to 5% of the purchase price are a sensible allowance. Our closing-costs guide breaks this down line by line.

Once you own, the annual property tax (known as IPI) is 1% per year, but only on value above a threshold that sits at roughly RD$10.7 million (about US$182,000) for 2026. Property below that is not taxed. The threshold is cumulative across everything you own personally, so it's a per-person allowance, not a per-property one.

Here's where new-build changes the picture. Under the CONFOTUR tourism incentive, qualifying new developments are exempt from both the 3% transfer tax and the annual IPI for up to 15 years. On a US$400,000 purchase that's US$12,000 saved at closing alone, before the annual saving. Eligibility is set per development, not guaranteed across the board, so it should always be confirmed for the specific project. Our full CONFOTUR guide explains what qualifies and how to verify it.

Paying for it: currency, financing and moving money

Most Dominican new-build is priced in US dollars, which removes exchange-rate guesswork for US buyers and gives Canadian buyers a single conversion to plan around. The Dominican peso has held a managed float against the dollar for over a decade, so dollar pricing stays stable.

Local mortgages are available to foreign buyers but tend to carry higher rates and larger deposits than North American buyers are used to, which is why many buy with cash or use a developer's staged payment plan during construction. Our guide to currency and financing covers the options, including how to move funds and what banks expect from an overseas applicant.

The step-by-step buying process

The mechanics differ from a US or Canadian closing, so it's worth knowing the shape of it before you start.

You agree terms and sign a reservation or promise of sale (the contrato de promesa de venta), usually with a deposit that takes the unit off the market. Your attorney then runs due diligence: confirming the seller's title at the Title Registry, checking the property has a clean, surveyed title (the deslinde), and confirming there are no liens or unpaid taxes. On a new development this includes checking the developer's permits and CONFOTUR status.

Funds are transferred, the deed of sale is signed before a notary, the transfer tax is paid, and the sale is filed with the Title Registry, which issues an updated Certificate of Title (Certificado de Título) in your name. On off-plan purchases, the title transfer happens on completion, with staged payments made during construction against the developer's schedule.

A local, independent attorney is not optional. Using the developer's or seller's lawyer for your own due diligence is the single most common mistake North American buyers make. Our legal and due diligence guide explains how to structure this properly

Thinking about a specific development? Speak to a Propuno adviser and we'll talk you through the process for that project.

What kind of return to expect

For buyers treating this as an investment as much as a home, coastal new-builds have supported gross rental yields commonly cited in the 6% to 9% range, underpinned by record tourism (the country drew over 11 million international visitors in 2025) and a four-hour flight time from Miami. Those figures are indicative market ranges from third-party data, not guarantees, and actual returns depend on the development, location and how the property is managed. Our rental yields guide and investor brief go deeper on the numbers.

Frequently Asked Questions

Can US citizens buy property in the Dominican Republic?

Yes. US citizens have the same property ownership rights as Dominican nationals, can hold freehold title directly in their own name, and are not required to have residency. There's no foreign-buyer surcharge. The practical requirements are the same as for any buyer: a valid passport, a local attorney to handle due diligence, and funds transferred through proper banking channels. Many US buyers purchase new-build under the CONFOTUR incentive to benefit from the transfer-tax and annual-tax exemptions.

How much money do you need to buy property in the Dominican Republic?

Entry-level new-build apartments in established regions start around US$150,000 to US$250,000, with beachfront condos and villas ranging well beyond that. On top of the purchase price, budget roughly 4% to 5% for closing costs (3% transfer tax plus legal and registration fees), though developments approved under CONFOTUR are exempt from the transfer tax, which reduces the upfront cost. Developer payment plans on off-plan stock let you spread the balance across the construction period rather than paying in full at reservation.

Is buying property in the Dominican Republic a good investment?

It can be, for the right buyer and property. The case rests on strong tourism-driven rental demand, dollar-denominated pricing, no annual property tax on much of the market, and up to 15 years of CONFOTUR tax relief on qualifying new builds. Coastal yields are commonly cited in the 6% to 9% range. The risks are the ones common to any overseas purchase: doing proper due diligence, buying from a credible developer, and understanding that yield and appreciation figures are indicative, not promised. Our investor brief sets out the full case.

Do you have to pay property tax in the Dominican Republic?

Only above a threshold. The annual property tax (IPI) is 1% of appraised value, but it applies only to the portion above roughly RD$10.7 million (about US$182,000) for 2026, and that allowance is cumulative across all property you own personally. Property below the threshold pays nothing. New developments approved under CONFOTUR are exempt from IPI entirely for up to 15 years. There's no difference in rate between Dominican nationals and foreign owners.

Ready to start?

Buying in the Dominican Republic rewards buyers who understand three things: your ownership rights are secure and equal to a citizen's, the real savings sit in new-build CONFOTUR stock, and independent local legal advice is non-negotiable. Get those right and the rest of the process is straightforward.

Tell us your budget, preferred region and how you plan to use the property, and we'll hand-pick verified new developments that fit. Start the Property Finder, or speak to a Propuno adviser to talk through your options.

This guide is general information, not legal or tax advice. Tax thresholds and CONFOTUR eligibility change and must be confirmed for your specific purchase and development.