Buying Real Estate in The Dominican Republic – The Ultimate Buyers Guide

Introduction:

Buying Real Estate in The Dominican Republic, – The Ultimate buyers Guide: If you are thinking about buying real estate in the Dominican Republic, congratulations, you’ve come to the right place. The process of buying land and owning property in the Dominican Republic in the right hands is simple and straight forward, however, in the wrong hands and with poor advice and zero direction, there can be many hidden pitfalls that are best avoided.

The purpose of this article is to help get you on the right path and to help you make wise choices in terms of making a real estate investment in the Dominican Republic. To follow is a comprehensive guide to help you find the property of your dreams so that you can begin living the kind of fun, free and liberating lifestyle you so richly deserve.

Why Invest in the Dominican Republic?

Take it from us, the Dominican Republic is a great place to live. Situated just over two hours from Miami International Airport and with 7 International airports, it’s a pretty easy place to get to and from. It’s a very diverse country, and being the second largest island in the Caribbean (48,442 km²), there’s no shortage of places to go to or things to do.

The Dominican Republic is also a thriving tourist destination which saw 11,192,042 visitors arrive to the country in 2024, of which 8,535,742 came by air and 2,656,300 by cruise line. The Dominican Republic’s Gross Domestic Product  (GDP) was U$356 billion in 2024 which was an increase of 2.8 percent from 2023 so economically it’s doing pretty well, and given anticipated forecasts, it’s a great place in which to live and invest if done correctly.

“Risk Comes from not Knowing What You’re Doing” – Warren Buffet

Is The Dominican Republic the right destination for you?

The Dominican Republic isn’t for everyone, and so it’s important to understand the history, the culture and the way of life first and foremost. Research is key, in alignment with your needs, requirements and ultimate goals. Begin with the end in mind. Smart investment starts by expanding your local knowledge, and there can be no better introduction to that than spending time on the ground in a variety of different locations.

“Prior preparation prevents poor performance” – James Baker

Start with the end in mind, what are your goals and what is the outcome you want from your new life in The Dominican Republic?

• Take time to understand the Dominican people, their culture & way of life
• Establish your goals, needs and requirements, what kind of lifestyle are you looking for?
• Embrace the prospect of learning a new language, in this case Spanish
• Take the time to enjoy and have an understanding of the different locations and resorts that might be of interest to you beyond all inclusive hotels
• If you’re planning to retire, what might be your hobbies & interests and which area might suit that best?
• Perhaps you would like to volunteer or have a business idea and so you might want to choose your location with that in mind
• Speak with and create a network of fellow investors and experienced expats that already live and have property investments in the Dominican Republic

Defining Your Budget and Search Criteria

• Have a clear idea of your budget, and be sure to include fixed and variable costs in your planning. Making sure you have the means to not only purchase your property, but that you can cover living costs comfortably without putting a strain on resources. Investment properties that look for a return on rental income in the Dominican Republic should have a proven track record, in addition to which gross and net return should be clearly defined and take into account general overhead and maintenance. Assuming a property will yield a certain return on verbal guarantees can often disappoint and fall short.
• What kind of property are you looking for, how many rooms? How big? Price range? A condominium in Cabarete or a villa in Sosua for example or perhaps a surf lodge or rental property in Encuentro? Think the process out, know the pros and cons of each. It’s also important to know kind of amenities are close by and what you will need, for example: hospitals, pharmacies, schools, supermarkets, banks, beaches, recreation, community and of course international airports.

Finding the Perfect Property in The Dominican Republic

Having a clear idea of your budget, defining your search criteria, your desired location and required amenities are key components in helping you find the perfect home. A good property in the right location will appraise well, rent well, and when the time comes, sell quickly. Important points to consider are: Security, proximity to the beach and local amenities the rising and setting of the sun in relation to the property, the number of steps and stairs, air circulation, and a comfortable, spacious outdoor living area….and perhaps the most important of all, is the area / property prone to flooding.

With no defined MLS system in place at this time within the Dominican Republic, the process of finding the right property can be time consuming which is why we would always recommend you using a professional realtor with a good reputation to help you on your way.

 

Gated Communities Versus Non Gated Communities in The Dominican Republic

A gated community is a secure residential area that can offer lots for purchase, new builds, or resale properties. The gated community charges a Home Owners Association or HOA fee which can vary in price and cover a multitude of benefits. For the most part, security, water supply, back up generator, refuse collection and maintenance of roads and public areas are the norm although the variety of available amenities can vary.

Buying a non gated property in the Dominican Republic is generally done by locals or ex pats who have a good knowledge of the way of life, the language, and customs & culture of the country. The obvious advantage is of course that there are no HOA fees to consider although security, 24 hour power, water supply and refuse collection can often come at a cost when done independently.

For the most part we strongly recommend that anyone thinking of investing in property in The Dominican Republic look to some form of gated community unless they have extensive knowledge of living in the country. Also, it’s always important to consider how your investment will appraise and resell when the time comes so location is key.

Understanding The Real Estate Market in the Dominican Republic

Please check out the following links for an in depth view of the buying process and an overview of what can and does go wrong, and what you can do to avoid it:

• What is the process for buying real estate in the Dominican Republic
• What are the potential pitfalls and scams when buying property in The Dominican Republic, and what are the measures that can be taken to avoid them completely
• Which areas offer the best opportunities in terms of ROI (return on investment), amenities, lifestyle and cost of living in line with your budget.

Buying Pre-Construction Property in The Dominican Republic

Pre-construction with financing opportunities can often sound too good to be true, and in some cases they are. It’s important to proceed with caution and have a good understanding of the reputation of the developer and who it is exactly you are dealing with. Here are a few important points for your consideration.

• Who is the developer and what is the developers history, is this their first project? (if not check out their previous developments)
• Does the developer own the property that is being developed and is the property clean and clear in terms of ownership and title?
• How is the project being financed and by who?
• Check for references online and do some local networking for reliable feedback regarding the developer
• If you plan to go it alone, proceed with caution, it is essential to have a good knowledge of the language, local laws and regulations, construction, a good handle on your budget, and the ability to find, manage and direct a competent constructions team. You should make time to be onsite for the majority of the process and expect the unexpected
• Seek advice from a reputable real estate agent and where necessary use a reputable lawyer to verify contracts
• There are some good local developers here in the Dominican Republic, but we cannot stress enough the importance of you working with a competent and professional company that have a proven track record.

Dominican Republic Real Estate Agents

For the most part, real estate agents in The Dominican Republic don’t have the best reputations, and for good reason. This is predominantly due to the lack of regulation within the industry which allows basically anyone to promote and sell property throughout the country. In effect someone could arrive to the Dominican Republic and be working in real estate the same day without having any knowledge of real estate laws or procedures.

Getting involved with the wrong people can often end badly and so we urge you the click the link above so that you are aware of the potential pitfalls when buying property in The Dominican Republic. There are in fact many professional real estate agencies here, beneath is a punch list to help steer you in the right direction.

• Does your real estate agent have any local qualifications and a good understanding of the procedures and legalities of the real estate market in The Dominican Republic?
• How long has your real estate agent lived in The Dominican Republic?
• Is your real estate agent a legal resident?
• Does your real estate agent speak Spanish fluently (both spoken and written) and do they have the capability to understand legal documentation?
• Does your real estate agent own property in The Dominican Republic?
• Check for references online and look for feedback in and around the area, this should apply to real estate agents, lawyers and also developers
• Don’t agree to offers that require non refundable deposits or promise unqualified ROI on investments, if in doubt seek legal advice

FYI – Our team at DR Property Guys have received diplomas through INFI (Instituto Nacional de Formacion Inmobiliaria) and Remax Real Estate Management.

Frequently Asked Questions:

Q: As a foreigner, can I buy real estate in the Dominican Republic?
A: Yes, as a foreigner you can buy property in the Dominican Republic without any restrictions. Click the link above for a full explanation of the buying protocols in the Dominican Republic

Q: Can I get good medical care and health insurance in the Dominican Republic?
A: There is a public healthcare system in the Dominican Republic however standards can vary throughout the country. It is normal practice for expats to purchase health insurance and seek medical attention privately. A good standard platinum plan can cost around U$200 per month and give a good level of coverage with lower cost plans also available. The quality of healthcare in the Dominican Republic has improved dramatically over the years. Many of the physicians are North American trained and speak fluent English. Medical tourism is on the up and up where procedures can often cost 50-70% less of those offered in Europe or the United States.

Q: How can I apply for residency?
A: The residency process begins in your home country by contacting the Dominican Embassy / Consulate where you can apply for a residency visa. The applicant needs to be in good health, with a clean police record, and be solvent, typically showing income of between U$1,500 – U$2,000 per month. It is not possible to work in the Dominican Republic without residency.

Q: Is it safe to drive in the Dominican Republic?
A: Click here for an in depth overview with regard to driving in the Dominican Republic

Q: Do you pay property taxes in the Dominican Republic
A: An annual property tax of 1% is paid on real estate over and above the threshold of RD$10.19 million pesos, or roughly U$160,000. Property owners over the age of 65 with just one residence are exempt of tax.

 

DR Property Guys are real estate specialists located on the north coast with over 50 years experience of living and doing business in the Dominican Republic. For more information or for any questions you might have about buying real estate in the Dominican Republic, or anything else for that matter, you can reach us at info@drpropertyguys.com or on the following phone numbers:

Tay: 809 756 7611
Phil: 809 707 3598

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