Dominican House for Sale – Part 9: Buying a Home in the Dominican Republic as a Foreigner

Dominican House for Sale – Part 9: Buying a Home in the Dominican Republic as a Foreigner

As interest in the Caribbean real estate market continues to grow, more international buyers are turning their attention to the Dominican Republic—and for good reason. With its year-round sunshine, affordable property prices, and straightforward purchasing laws for foreigners, it’s no surprise that so many are asking: Can I buy a home in the Dominican Republic as a non-citizen?

In this ninth part of our series on Dominican houses for sale, we take a deep dive into how foreigners can legally and successfully buy a home in the Dominican Republic. We’ll focus on one of the most sought-after areas for foreign investment—Cabarete—and walk you through every step, from legal rights and residency to financing, taxes, and tips on finding the best deals.

Whether you’re seeking a tropical vacation home, a rental income property, or a full-time residence, this guide has everything you need to know before making your move.

Why Cabarete Is the Perfect Place to Start Your Dominican Property Journey

Cabarete, a lively beach town on the Dominican Republic’s north coast, is a magnet for digital nomads, surfers, retirees, and real estate investors. Unlike the more tourist-heavy regions of Punta Cana, Cabarete offers a laid-back lifestyle combined with an active social scene and stunning natural surroundings. Think beachfront cafes, yoga studios, kiteboarding, and sunset horseback rides—yet all within a community where English is widely spoken and foreigners are welcomed.

Cabarete’s gated communities, condos, and villas offer everything from budget-friendly units to multimillion-dollar luxury estates. This makes it ideal for international buyers at any investment level.

Let’s explore what it takes to own property here as a foreigner—and why Cabarete continues to top the list for buyers worldwide.

Can Foreigners Buy Property in the Dominican Republic?

Yes. Foreigners have the same legal rights as Dominican citizens when it comes to purchasing property. There are no restrictions on foreign ownership. You can own land, homes, condos, and commercial properties with full title and legal protection.

In fact, the Dominican Republic is one of the most open real estate markets in the Caribbean for international buyers. Here are some highlights:

• No residency required to purchase property

• 100% ownership rights allowed

• Property can be titled in your personal name or under a Dominican corporation

• Foreigners can inherit, sell, or lease property freely

• Financing is available in select cases for non-residents

Whether you’re from the U.S., Canada, Europe, or Latin America, you have full access to invest in Dominican houses for sale without needing citizenship or permanent residency.

Step-by-Step Guide to Buying Property as a Foreigner

Buying a home in the Dominican Republic is straightforward—but it’s important to follow each step carefully to ensure your investment is protected. Here’s how it works:

1. Choose a Trusted Local Real Estate Agent

Your first move should be to connect with a licensed, reputable agent who understands the local market. A knowledgeable agent will guide you through available listings, help you evaluate properties, and coordinate with attorneys, notaries, and government offices. For areas like Cabarete, it’s crucial to work with someone who knows every gated community, understands rental potential, and can recommend reliable professionals.

2. Identify Your Ideal Property

Are you looking for:

• A beachfront condo under $200,000?

• A private villa with a pool in a gated community?

• A luxury home with ocean views?

• An income-generating vacation rental?

Cabarete has them all. Once you narrow your goals, your agent will present options tailored to your needs and budget.

3. Make an Offer and Sign a Promise of Sale

Once you find the right property, you’ll negotiate the purchase price and terms with the seller. If both parties agree, a Promise of Sale (Contrato de Promesa de Venta) is signed. This outlines the price, payment schedule, closing date, and any contingencies. At this stage, a deposit—typically 10%—is paid by the buyer.

This contract is legally binding and usually gives you time (30–90 days) to finalize due diligence and complete payment.

4. Conduct Due Diligence

Your Dominican attorney will now carry out thorough checks:

• Confirm the title is clean and properly registered

• Verify the seller is the legal owner

• Ensure property taxes are paid

• Confirm there are no liens, encumbrances, or legal issues

• Review any HOA rules (if applicable)

Due diligence also includes a visit to the land registry office and verification of property boundaries and building permits.

5. Finalize the Sale and Register the Title

Once due diligence is complete and final payment is made, the Deed of Sale (Contrato de Venta) is signed. This document is notarized, filed at the local land registry, and registered under your name or corporate entity. At this point, you become the official legal owner.

The registration process can take 30–90 days. Once complete, you receive the Certificate of Title (Título de Propiedad)—proof of your ownership.

Legal Considerations for Foreign Buyers

The Dominican legal system is based on civil law, and all real estate transactions are conducted in Spanish. That’s why hiring an experienced, bilingual attorney is essential. Key legal considerations include:

• Property Transfer Tax: 3% of the assessed value of the property (not necessarily the purchase price).

• Notary and Legal Fees: Usually between 1.5% to 2.5% of the purchase price.

• Title Registration: Buyer is responsible for registering the property under their name.

You can own property:

• In your personal name

• Through a Dominican corporation (beneficial for tax planning or rental properties)

• Via a trust structure (often used for estate planning)

Foreign buyers should also have a valid passport and be prepared to open a local bank account if needed.

Residency and Tax Benefits for Foreign Buyers

You do not need residency to buy property in the Dominican Republic. However, many buyers pursue residency or permanent residency status for additional benefits, including:

• Easier long-term stays

• Simplified banking

• Local tax advantages

The Confotur Law offers generous tax exemptions to buyers in government-approved tourism developments, including:

• 15-year exemption from property tax

• No transfer tax on the initial purchase

• Exemption from capital gains tax upon resale

Many gated communities and condos in Cabarete qualify under Confotur, especially new developments. This can save buyers thousands of dollars and increase long-term profitability.

Financing Options for Foreign Buyers

Most foreign buyers purchase Dominican properties in cash, but financing options do exist. Here’s what to know:

• Seller Financing: Some property owners offer financing directly, especially on pre-construction units or high-end homes. This can provide more flexibility with terms.

• International Financing: Buyers with international portfolios may use personal lines of credit or refinance assets in their home country.

If financing is important to you, discuss this with your agent early in the process.

What Types of Properties Are Best for Foreign Buyers?

Cabarete offers a wide variety of properties perfect for foreigners:

1. Beachfront Condos

• Easy to rent, manage, and maintain

• Ocean views and walkable locations

• Prices start around $150,000

2. Villas in Gated Communities

• Ideal for full-time residents or families

• Private pools, yards, and parking

• Secure, landscaped neighborhoods like Casa Linda and ProCab

• Prices from $250,000–$800,000+

3. Pre-Construction Units

• Lower prices and potential appreciation

• Payment plans often available

• Ideal for investors seeking ROI

4. Luxury Estates

• Oceanfront mansions in Sea Horse Ranch or Haciendas El Choco

• High-end finishes and privacy

• Prices $1.2 million and up

Common Mistakes Foreign Buyers Should Avoid

To ensure your investment goes smoothly, avoid these common pitfalls:

• Skipping due diligence: Always hire a trusted attorney to verify the title.

• Not budgeting for closing costs: Legal fees, taxes, and notary costs add about 4%–5% to the purchase price.

• Choosing the wrong location: Work with a local expert who understands each community’s pros and cons.

• Buying without visiting: Virtual tours are helpful, but it’s best to see the property in person.

• Assuming all properties can be rented: Check local zoning and HOA rules for rental restrictions.

Why Cabarete Continues to Attract Foreign Buyers

Cabarete remains a top destination for foreign real estate buyers because it offers:

• A welcoming expat community

• Year-round tourism and rental demand

• Stable property values and high rental yields

• A low cost of living with high quality of life

• Legal transparency and full ownership rights for foreigners

With beachfront condos, gated family homes, and luxury estates all within reach, it’s no wonder Cabarete is considered one of the best places to buy a home in the Dominican Republic.

Blue Sail Realty: Your Trusted Guide for Foreign Property Buyers

At Blue Sail Realty, we specialize in helping foreign buyers purchase Dominican properties with confidence. Whether you’re new to international real estate or an experienced investor, we provide personalized service, local insight, and full support throughout the entire process.

We help you:

• Find the perfect property based on your lifestyle and goals

• Navigate legal requirements and tax strategies

• Coordinate with vetted attorneys and title experts

• Understand local neighborhoods and investment potential

• Buy safely, securely, and stress-free

Final Thoughts: Buying a Home in the Dominican Republic as a Foreigner Is Easier Than You Think

With full property rights, affordable prices, and a high-quality lifestyle, the Dominican Republic is a top choice for international buyers—and Cabarete is at the heart of it all. Whether you’re dreaming of a beachfront retreat, a rental income property, or a permanent relocation, buying a home in the Dominican Republic is a smart move when done right.

Ready to explore your options? The time is now to make your move and discover your dream home in paradise.