The buying guide

Buying property in Cap Cana, without the fog

Foreigners buy Dominican property with the same rights as citizens, and the process is more orderly than most people expect. Here is the whole path — reservation to registered title — and the tax rules that actually move the numbers.

The process

Five steps, start to keys

Choose the unit and reserve it

A reservation agreement and a deposit take the unit off the market while the paperwork is prepared. At this stage you should already have the full price list, the payment schedule and the building's tax status in writing.
Bring in your own lawyer

An independent Dominican real-estate lawyer checks the title, the developer's permits and the contract before you sign anything binding. This costs a fraction of what it protects. We can point you to lawyers other buyers have used — you choose, and they answer to you.
Sign the promise of sale

The promise of sale (contrato de promesa de venta) is the binding contract — price, payment schedule, delivery date, penalties and what happens if either side walks. It's signed before a notary.
Pay in stages while it's built

Pre-construction purchases are paid in tranches — typically a portion at signing, a portion during construction, and the balance at delivery. The exact split is in your contract; treat any percentages from marketing decks as indicative only.
Take delivery and register the title

At delivery you inspect the unit, settle the final payment, and the deed (título) is registered in your name — or your company's — at the Registro de Títulos. From that point it's yours in the fullest legal sense.

Taxes

The two taxes that matter — and the law that can waive them

At purchase

3% transfer tax

Registering a property normally costs 3% of its value, once, at closing. On a USD 650,000 unit that's USD 19,500 — the single biggest closing cost.

Every year

1% property tax (IPI)

Properties above a government-set threshold pay roughly 1% of the excess value annually. It's assessed per person, not per property — your lawyer will run your exact case.

The exemption

CONFOTUR (Law 158-01)

Government-certified tourism projects can pass both exemptions to buyers: no transfer tax, and no IPI for up to 15 years. Whether a specific building is certified, in process, or not applying is a fact you should see in writing — the full CONFOTUR guide goes deeper.

Where Reef & Golf stands: its CONFOTUR certification is in process, not yet granted. If granted, buyers save the 3% transfer tax and up to 15 years of IPI. Our advice is boring and consistent: budget as if the exemption didn't exist, and let it be good news if it lands. See the Reef & Golf project page for the current status.

Worth knowing

The fine print people skip

Foreign buyers, same rights

Law 16-95 guarantees foreign investors the same treatment as Dominicans: you can hold freehold title in your own name, buy through a company, and repatriate sale proceeds or rental profit without restriction. Transactions in Cap Cana are commonly denominated in US dollars.

Pre-construction is patient money

Buying off-plan gets you the lowest entry price, but your money is committed for the construction period, and reselling before delivery usually requires the developer's consent. Buy pre-construction because you want the unit at that price — not because you plan to flip it before the keys exist.

Rental projections are the developer's, not ours

Every pre-construction project in the Caribbean comes with a rental model. Read them as the developer's best case: check the nightly rate against what comparable units actually list for, and ask what the management contract costs. We'll happily walk through any model with you, line by line.

Residency, if you want it

A property investment of USD 200,000 or more can qualify you for Dominican residency under the investor track (Law 171-07) — a genuine option if you plan to spend real time here. An immigration lawyer handles it; it's a separate process from the purchase itself.

Quick answers

Asked most often

Can foreigners really own property outright in the Dominican Republic?

Yes — freehold, registered title, same rights as citizens, no local partner required. You can hold it personally or through a company.

What are the closing costs?

Plan for the 3% transfer tax (unless a CONFOTUR exemption applies), plus legal fees — commonly around 1% — and minor notary and registration charges. Your lawyer quotes the exact package before you commit.

Can I finance the purchase locally?

Dominican banks do lend to foreign buyers, but terms are stiffer than in the US or Europe, and most international buyers in this segment close in cash or use the developer's staged payment plan as their financing. For pre-construction, the payment schedule itself spreads the cost over the build.

Is a lawyer really necessary if the developer has everything prepared?

Yes. The developer's lawyer works for the developer. Title verification, permit checks and contract review by someone who answers only to you is the cheapest insurance in the whole transaction.

What happens if the project is delayed?

Delivery dates and delay penalties belong in the promise of sale. Before signing, check what the contract says happens — to your payments and your exit rights — if delivery slips. If the contract is silent on this, that's your answer about the developer.

Have a contract or price list in hand?

Send it over. We'll tell you what looks standard, what doesn't, and which questions to ask before you sign anything.

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