FAQs

Buying property in Punta Cana can be handled 100% remotely through an independent attorney via a Power of Attorney (POA). The purchasing process follows four main stages:

Step 1: Reservation Agreement (Contrato de Reserva)

Once you select a property, you submit a formal reservation form along with a deposit—typically $1,000 to $5,000 USD—to take the unit off the market and lock in the purchase price.

Step 2: Legal Due Diligence & Promise of Sale (Promesa de Compraventa)

An independent real estate attorney conducts legal due diligence on the property (verifying title status, tax clearings, environmental permits, and developer credentials). Once verified, you sign the Promesa de Compraventa, which legally binds the buyer and developer, and pay the remaining initial down payment (usually 10% to 20% minus the initial reservation fee).

Step 3: Construction Installments / Payment Schedule

For pre-construction properties, you make structured payments during the construction period (e.g., 30% to 40% spread across monthly or quarterly installments over 12 to 24 months). The remaining balance (typically 50%) is due upon completion and delivery.

Step 4: Final Closing, Title Transfer, and Delivery

Upon completion, you perform a final walkthrough (in person or via video inspection), pay the final balance, sign the definitive contract (Contrato Definitivo), and your attorney submits the transfer documents to the Title Registry to issue the deed in your name.

Transparency is key when buying overseas real estate. In the Dominican Republic, standard closing costs and property tax guidelines include:

Upfront Closing Costs (Standard / Non-CONFOTUR):

• 3% Title Transfer Tax: Calculated on the government-appraised value of the property. (Waived under CONFOTUR).
• 1% to 1.5% Legal & Notary Fees: Covers legal due diligence, drafting contracts, and registering titles through your independent real estate attorney.
• ~0.5% Administrative & Miscellaneous Fees: Covers stamps, registry fees, and tax authority processing.

Ongoing Property Taxes (IPI):

• Properties held by individuals are subject to an annual 1% IPI property tax applied only to the total cumulative value of real estate assets that exceeds the national exemption threshold set by the Internal Revenue Directorate (DGII).
• For properties under this exemption threshold, no annual property tax is due. Properties with CONFOTUR certification are exempt regardless of property value.

Bank Mortgages & Developer Financing:

• Dominican Bank Financing: Dominican commercial banks offer mortgages to non-resident foreign buyers (from the US, Canada, Colombia, etc.) up to 50%–70% LTV with terms up to 20 years. Approval requires submitting foreign tax returns, credit reports, and proof of income.
• Developer Direct Payment Plans: During construction, most developers offer interest-free payment schedules over the build duration without requiring formal credit checks or mortgage applications.

Vacation Rentals (Airbnb & Short-Term Rentals):

• High ROI Demand: Punta Cana is an active year-round vacation market driven by international tourism and modern infrastructure.
• Rental Support: Most modern residential projects in Punta Cana are specifically designed for vacation rentals, offering lock-off layouts, resort-style amenities, and dedicated on-site property management companies to handle listings, check-ins, cleaning, and maintenance hands-free.
• Income Currency: Vacation rental income in Punta Cana is predominantly priced and earned in US Dollars (USD).

The CONFOTUR Law (Law 158-01 for Tourism Incentive) is a tax exemption incentive created by the Dominican government to stimulate real estate and infrastructure development in designated tourism zones, including Punta Cana, Bávaro, and Cap Cana.

When you purchase a pre-construction or newly built property in a project with CONFOTUR certification, you receive major tax savings:

• 0% Property Transfer Tax at Closing: You are completely exempt from paying the standard 3% Title Transfer Tax (Impuesto de Transferencia Inmobiliaria) on the property value.
• 0% Annual Property Tax (IPI) for up to 15 Years: You are 100% exempt from the annual 1% Real Estate Property Tax (Impuesto al Patrimonio Inmobiliario – IPI) for the duration approved for the development (up to 15 years from initial project approval).

Example Savings on a $250,000 USD Purchase:

• Transfer Tax Savings: ~$7,500 USD saved upfront at closing.
• Annual IPI Tax Savings: ~$2,500 USD saved per year for up to 15 years.

Note: CONFOTUR benefits apply to the property itself and automatically transfer to the next owner if you decide to sell before the exemption period expires.

Yes. Under Law 173-98, foreign individuals and international corporations enjoy the exact same constitutional rights and ownership guarantees as Dominican citizens when acquiring real estate in the country.

There are no restrictions on foreign ownership in the Dominican Republic, and you do not need a local partner, a Dominican entity, or permanent residency status to purchase property.

Key Takeaways for International Buyers:

• Identification: You only need a valid passport and a secondary form of identification (such as a driver’s license) to sign purchase agreements and hold property titles in your personal name.
• Direct Ownership: Titles are issued directly to you by the Dominican Title Registry Office (Registro de Títulos) under the Torrens Title System, ensuring guaranteed fee-simple ownership.
• Corporate Ownership: You may also hold property through a local Dominican company (SRL) or a foreign entity (e.g., a foreign LLC) if preferred for estate planning or asset protection.