Most buyers compare listing prices. Informed buyers compare what the purchase costs in total. Before you reserve a unit in Punta Cana, Cap Cana, Bávaro or Macao, it helps to know what sits on top of the price, what repeats every year and which of those lines can shrink. Percentages vary by transaction, so treat what follows as typical orders of magnitude, not a quote.
You buy with the same rights as a Dominican citizen
A foreigner can buy property in the Dominican Republic with the same rights as a Dominican citizen. You do not need residency, a special visa or a local company. The title is registered in your name (or in your company’s or trust’s name, if your estate planning recommends it) before the Title Registry, under Law 108-05 on Real Estate Registration.
The one real requirement is documenting the source of your funds with the banking system, an international anti-money-laundering standard that applies in any serious country. With a valid passport and documented funds, the path is open.
One-time costs
Transfer tax: 3 percent of the property’s value
In a standard purchase, moving the title into your name costs a tax of 3 percent of the property’s value. On a US$200,000 property, that is US$6,000. In projects approved under CONFOTUR (Law 158-01), this tax is exempt.
Legal fees: typically 1 to 1.5 percent
This covers due diligence, contract review and closing support. It is the best-spent money in the transaction, as long as the lawyer works for you and not for the seller. They verify the Certificate of Title, liens and encumbrances before you commit.
Furniture and equipment
In pre-construction, many units are delivered unfurnished. If your goal is rental income, budget the furniture package from the start, not as a surprise at the end.
Costs that repeat every year
- Condo maintenance (HOA). It varies by project and amenities. Ask for the exact fee per square meter and what it includes before signing.
- Rental management. If you rent the unit, professional management typically charges between 20 and 30 percent of income, depending on the model and services.
- Utilities, insurance and reserve. Electricity, internet, unit insurance and an annual reserve for furniture replacement.
Where the savings are
CONFOTUR is the biggest lever on your numbers. Besides the exempt transfer tax, your property is exempt from the annual property tax (IPI) for 15 years, which improves the net cash flow of a rental investment every single year.
The benefit belongs to the project, not to the seller’s promise. Approval is an official, verifiable resolution, and part of due diligence is confirming that it exists, is current and covers the unit you are buying. A brochure that says CONFOTUR is not a document; a resolution is.
How payments work
For a finished property, a typical closing takes 30 to 60 days. In pre-construction, you pay an initial percentage plus installments during construction, and the cycle runs from the reservation to the project’s delivery date. All payments go through formal banking channels, never in cash. In many projects, your payments go into a trust (fideicomiso) managed by an independent fiduciary that releases funds to the developer based on construction progress. It is one of the most important protections to look for.
The iCONIC rule
Before our clients reserve any unit, we build the complete cost table for that specific unit. If a number cannot be verified, we ask for it in writing. What is not in writing does not exist.
Checklist before you reserve
- Get the transfer tax treatment in writing, with or without CONFOTUR.
- Ask for the CONFOTUR resolution and confirm it covers your unit.
- Get the HOA fee per square meter and a list of what it covers.
- Budget the furniture package if the unit is delivered unfurnished.
- Confirm that payments go through formal banking channels or a trust.
- Hire your own lawyer to verify the title before you sign.
This article is for informational and educational purposes. It does not constitute legal, tax or investment advice. Laws, taxes and market conditions can change; verify every figure as applied to your case with independent advisors before making decisions.
