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The Step-by-Step Guide to Buying Commercial Property in the Dominican Republic as a Foreigner

The Dominican Republic’s real estate market has gained steady momentum over the past decade, and in 2023 and early 2024, it hit new highs. With a mix of beachfront villas, city condos, and mountain retreats, the country offers a range of investment options at prices still well below those in North America and Western Europe.

Foreign interest is at an all-time high. According to the Central Bank of the Dominican Republic, the real estate sector attracted over $1.6 billion USD in foreign direct investment in 2023 alone—a 12% increase from the previous year. Property transactions in tourist-heavy areas like Punta Cana, Santo Domingo, and Las Terrenas grew by 18% year-over-year, driven by a mix of lifestyle buyers and investors seeking rental income.

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Why It’s Attractive to Foreign Investors?

The Dominican Republic isn’t just a popular vacation spot, it’s become a serious contender for real estate investment in the Caribbean. Its mix of low barriers to entry, strong tourism-driven rental demand, and a stable economic outlook makes it especially appealing to non-citizens looking to diversify their portfolios or secure a second home abroad. Here’s why more international buyers are choosing to invest here:

• Affordability: Properties remain competitively priced compared to similar Caribbean destinations.
• Rental income potential: High tourism demand means strong short-term rental returns, especially near beaches.
• Lax ownership rules: Foreigners can own property outright with no need for local partners or special permits.
• Growing economy: Infrastructure investments and steady GDP growth support long-term property value.
• Residency options: Real estate investment can fast-track residency for non-citizens.

This guide is designed to help non-citizens understand how to enter the Dominican real estate market legally, safely, and profitably. Whether you’re buying a vacation home or building a portfolio, we’ll walk through the types of property available, what areas are hot, how the buying process works, and what to watch out for.

Understand the Market Landscape

Investing in real estate starts with understanding what’s on offer, where the opportunities lie, and how much you can expect to gain. The Dominican Republic has a diverse property market that includes not only residential units but also several commercial asset classes. Each has its dynamics, costs, and investment potential.

Commercial Real Estate Types

The Dominican Republic offers a range of commercial property options, each catering to different types of investors and business strategies:

• Retail spaces: These include storefronts, shopping plazas, and standalone buildings. High-traffic tourist zones like Bávaro and downtown Santo Domingo see strong demand from local businesses and international brands. For example, a 1,200 sq ft retail unit near BlueMall in Santo Domingo may rent for around USD 3,000 per month due to foot traffic and visibility.
• Office buildings: Mostly concentrated in Santo Domingo and Santiago. There’s steady demand from legal firms, financial services, and multinational companies. Class A office space in the Naco or Piantini districts typically leases at USD 18 to 25 per square meter per month.
• Industrial and logistics: Growth in e-commerce and trade has boosted demand for warehousing and distribution centers near ports and highways. The Duarte Highway corridor and areas near the Caucedo Port are key. Investors can find warehouse space starting at USD 400,000 for medium-sized lots, with rental yields around 7 to 9 percent annually.

Tip: If you are new to commercial real estate, start with mixed-use properties that allow flexibility between commercial and residential leasing. These are common in Santo Domingo and tourist zones and reduce vacancy risk.

Key Locations for Investment

Not all areas offer the same potential for return or stability. Whether you’re targeting short-term income through rentals or long-term growth, choosing the right location is critical. The Dominican Republic’s top markets each serve different investment goals, from tourism-driven hotspots to urban centers with strong commercial activity.

• Santo Domingo: The capital remains the business and administrative center. Strong demand for office and retail space, especially in upscale neighborhoods like Bella Vista and Piantini. Higher entry costs but consistent returns.
• Punta Cana and Bávaro: These areas are heavily tourism-driven. Ideal for retail shops, vacation rental hubs, and boutique hotel investments. A 2-story commercial lot near the beach, with ground-floor retail and upper-level apartments, can yield 8 to 10 percent per year.
• Santiago: A rising second-tier city with growing industry, healthcare, and education sectors. More affordable entry points, with office and retail demand steadily climbing. Investors targeting long-term growth often favor this market.

Prices, Demand Trends, and ROI Potential

Understanding the numbers behind the market is key to making smart investment decisions. While prices vary by location and property type, certain patterns have emerged that give investors a clearer picture of what to expect in terms of costs, rental demand, and return on investment.

• Average commercial property prices:
  • Santo Domingo (prime zones): USD 2,000 to 3,500 per sq meter;
  • Punta Cana retail: USD 1,800 to 2,800 per square meter;
  • Santiago office: USD 1,200 to 2,000 per square meter.

• Demand trends:
  • Retail remains strong in tourist-heavy areas;
  • Office space sees steady demand in urban centers;
  • Logistics and warehousing are expanding, especially post-COVID.
    
• Return on Investment (ROI):
  • Retail near tourist zones: 8 to 12 percent;
  • Office in business districts: 6 to 9 percent;
  • Warehousing/logistics: 7 to 10 percent.

Tip: Work with a local real estate attorney and a licensed commercial broker who can provide market comps and due diligence. Many foreign investors overlook zoning laws and local tax codes, which can affect both ROI and resale value.

Legal Framework for Foreigners

Buying real estate in a foreign country always comes with questions about rights, risks, and legal processes. In the Dominican Republic, the legal environment is surprisingly friendly to non-citizens. Still, there are a few details foreign buyers need to understand to avoid complications and protect their investments.

Can Foreigners Buy Property?

Yes. Foreigners can buy, sell, and own property in the Dominican Republic with the same legal rights as Dominican citizens. There are no restrictions on nationality or residency status when it comes to real estate ownership.

Ownership is recorded through the Title Registry Office, and properties are typically held in fee simple meaning full legal ownership with no time limits or special conditions. Foreigners don’t need a local partner or a special permit to purchase.

Tip: Always request a copy of the property title and check it against the official land registry (Registro de Títulos). Work with a local attorney who can verify the title is clean and free of liens or ownership disputes.

Legal Rights of Foreign Property Owners

Once a foreigner owns a property, their legal rights are equal to those of Dominican nationals. Owners can:

• Rent out the property for short- or long-term leases;
• Sell at any time without restrictions;
• Pass ownership on to heirs;
• Use the property as a primary residence or vacation home.

Foreign owners are also protected by Dominican property laws and can pursue legal action in the event of disputes, fraud, or breach of contract.

Tip: Include a clear purchase agreement outlining all terms of the sale, especially if buying through a developer or with staged payments. This protects you if delivery is delayed or promised amenities fall through.

Special Considerations

While the general legal environment is open, there are some specific rules and considerations worth noting:

• Border restrictions: Foreigners cannot own land within 1 km of the country’s borders (e.g., near Haiti). If you’re buying land in the west or southwest of the country, verify your property’s location carefully.
• Inheritance laws: The Dominican Republic follows forced heirship rules under its Civil Code. This means a portion of your estate may be legally reserved for heirs such as children or spouses, even if your will says otherwise. To avoid issues, foreign investors often use a Dominican corporation or trust structure to hold property.
• Corporate ownership: Foreigners may choose to buy property through a Dominican company (SRL or EIRL). This can offer tax advantages and make inheritance planning simpler, especially for investors managing multiple properties.

Tip: If you’re planning to pass the property on to heirs or include it in a long-term investment plan, consult a local estate attorney. They can help you structure ownership in a way that minimizes legal risks and tax burdens.

Define Your Investment Goals

Before entering the Dominican Republic’s property market, it’s essential to understand what you want to achieve. The commercial real estate sector offers several paths, but each one serves a different purpose. Clarifying your objectives early helps you avoid mismatches between property type, location, and financial outcome.

Clarify your purpose

Investors typically fall into one of three categories: those seeking rental income, those needing space for their own business, and those focused on long-term capital appreciation.

For example, an investor from Canada might buy a retail space near Playa Los Corales in Bávaro to lease to a surf shop or minimarket targeting tourists. The area has high foot traffic and short-term lease turnover, making it ideal for income-focused strategies.

In contrast, a European entrepreneur might purchase a small hotel or wellness center lot in Las Terrenas for their business use. This type of investment is less about quick cash flow and more about personal control and long-term brand building.

Someone looking for long-term appreciation might acquire a half-acre plot outside Santiago along the Circunvalación Norte, anticipating city growth in that direction. While returns may take years to materialize, land prices in these fringe areas have steadily climbed as development pushes outward.

Set your budget and financial limits

Understanding your financial boundaries will narrow your search and help you evaluate deals objectively. Commercial real estate in the Dominican Republic varies widely in price, with smaller office units in secondary cities starting around USD 80,000, while premium retail units in Santo Domingo can reach upwards of USD 500,000 or more.

For example, a New York–based investor with a USD 150,000 budget might consider a 50-square-meter office in central Santiago, close to universities and clinics, offering steady demand from medical or academic professionals. That same amount would not stretch far in Piantini, Santo Domingo, where prices per square meter are often double.

Investors also need to budget for legal fees, title transfer costs, and potential renovations. A buyer who finds a 2-story commercial building for USD 220,000 in central Puerto Plata may discover that updating plumbing, wiring, and signage for modern tenants adds another USD 40,000 to the total outlay.

Determine the type of commercial property that fits your needs

Each type of commercial property offers different advantages. Retail is best for visibility and cash flow, office space suits professional clients, while industrial and warehousing are tied to logistics and trade.

For instance, a Miami-based investor recently purchased a 3-unit strip mall in Punta Cana, catering to tour operators and scooter rental shops. The cash flow began almost immediately, with seasonal peaks tied to the high tourist months of December through April.

Alternatively, a retiree from Spain bought a small medical office near Hospital Metropolitano de Santiago (HOMS), leasing it to a dentist on a 5-year contract. The property yields consistent monthly income with minimal management required.

An investor focused on e-commerce logistics might opt for a small warehouse outside Boca Chica, near the port and highway links. While the location isn’t glamorous, demand for storage and last-mile delivery hubs is growing, especially from local online retailers.

Make an Offer and Negotiate

Once you’ve found a property that fits your investment goals, the next step is making an offer. In the Dominican Republic, the process is relatively straightforward but still requires careful attention to detail. Understanding how to structure your offer and what terms are open to negotiation will help you secure a deal on favorable terms.

Steps to submitting an offer

The offer process usually begins with a written proposal, often called a Letter of Intent or Offer to Purchase. This document outlines your proposed price, payment terms, deposit amount, and any specific conditions. While not legally binding, it serves as a starting point for negotiations.

For example, a buyer interested in a retail space in Santo Domingo may submit a formal offer of USD 250,000 with a 10 percent deposit, contingent on completing a clean title review and structural inspection. The seller can accept, reject, or counter with different terms.

Once both parties agree, a Promise of Sale contract is drafted. This preliminary agreement is binding and outlines the full terms, including timelines, penalties for default, and closing conditions. The final sale is formalized with a signed deed (Contrato de Venta) and title transfer.

Common negotiation points

Several elements of the deal can be negotiated beyond just the purchase price. These typically include:

• Repairs or renovations. A buyer may request the seller to fix issues found during inspection, such as electrical problems or water damage. For instance, a buyer might agree to the asking price of a small office in Santiago on the condition that the seller replaces the outdated air conditioning system.
• Inclusions and exclusions. Furniture, signage, or security systems are sometimes negotiable. A buyer purchasing a furnished commercial unit in Punta Cana may ask for all existing equipment to be included in the price.
• Payment schedule and timeline. Foreign buyers often negotiate staggered payments or delayed closings. For example, a buyer purchasing a mixed-use building in La Romana might request a 90-day closing period to allow time for transferring funds internationally.
• Price flexibility. In many cases, especially for properties that have been on the market for a while, sellers expect negotiations. A buyer might offer USD 180,000 for a property listed at USD 200,000, citing recent comps or needed repairs.

Role of your attorney during this phase

Your attorney plays a central role in drafting, reviewing, and negotiating the terms of all documents. They ensure the offer protects your interests and complies with local laws. Attorneys also handle due diligence, including verifying the title, checking for unpaid taxes, and confirming zoning compliance.

For example, a buyer looking at a warehouse near the Duarte Highway may rely on their attorney to uncover a pending legal dispute tied to the property’s boundaries. This discovery can lead to renegotiation or backing out of the deal entirely before any money changes hands.

The attorney also oversees the escrow process and coordinates with the seller’s legal team, ensuring all contractual steps are met before closing.

Finalize the Deal

Once the offer is accepted and terms are agreed upon, the process moves into the formal legal stage. This phase involves signing key contracts, making a down payment, and preparing for the official closing. Timelines and procedures are generally straightforward, but attention to legal and financial details is essential to avoid costly delays or misunderstandings.

Drafting and signing the Promise of Sale (Contrato de Opción)

The Promise of Sale, or Contrato de Opción, is the first binding agreement between buyer and seller. It outlines all agreed terms, including the purchase price, payment schedule, responsibilities of each party, and the final closing date. This contract is drafted by your attorney and must be signed in front of a notary.

The agreement typically includes clauses covering legal penalties if either party backs out without justification. For instance, a buyer who fails to close without cause may forfeit the down payment, while a seller who breaches the deal may be required to return the deposit plus compensation.

Tip: Make sure the contract includes contingencies for title verification and property condition. If a problem surfaces before closing, you want a legal path to renegotiate or exit the deal.

Down payment (usually 10%)

At the time of signing the Promise of Sale, the buyer provides a down payment—most commonly 10 percent of the total price. This amount is either held in escrow or transferred directly to the seller, depending on the agreement.

For example, a buyer purchasing a retail unit for USD 220,000 in Punta Cana would typically pay a USD 22,000 deposit upon signing. This secures the property and officially takes it off the market.

Tip: Always transfer the deposit through a verified escrow service or attorney-managed account. Avoid direct transfers to the seller unless your attorney has verified that the process is secure.

Closing process: timelines, documents, and fees

The final closing typically occurs 30 to 90 days after signing the Promise of Sale, depending on the complexity of the transaction and the buyer’s financing arrangements. At closing, both parties sign the final Contrato de Venta, and the property title is transferred and registered with the Title Registry Office.

Documents usually required at this stage include:

• Final signed purchase contract.
• Property title (original).
• Seller’s ID and buyer’s passport or residency card.
• Tax clearance certificate (Certificación de No Adeudo).
• Payment proof and bank statements, if applicable.

Associated fees during closing may include:

• Transfer tax: 3 percent of the property’s registered value.
• Legal fees: typically 1 to 1.5 percent of the sale price.
• Notary and registration fees vary by province.

Tip: Confirm all utilities and property taxes are current before closing. Your attorney should request clearance certificates to avoid inheriting unpaid bills or debts tied to the property.

Title Transfer and Registration

After closing, the final step in securing your ownership is transferring the title and registering it with the Dominican government. This is the legal process that officially makes you the recognized owner of the property. It involves completing the sale, notarizing the contract, and submitting documentation to the appropriate authorities.

Final payment and signing the Act of Sale (Contrato de Venta)

The Contrato de Venta, or Act of Sale, is the final, definitive contract that transfers ownership from seller to buyer. This document is signed once all due diligence is complete balance of the purchase price is paid.

For example, if the total price of a commercial unit in Santo Domingo is USD 300,000 and the buyer has already paid a USD 30,000 deposit, the remaining USD 270,000 must be paid before signing the Act of Sale. This contract replaces the earlier Promise of Sale and finalizes the transaction.

Tip: Ensure the final payment is processed through a traceable method, such as a certified bank transfer. Keep proof of all transactions for registration.

Title registration with the Title Registry Office (Registro de Títulos)

Once the Act of Sale is signed and notarized, your attorney submits it along with other required documents to the Title Registry Office in the jurisdiction where the property is located. This step makes your ownership public and legally protected.

Registration usually takes 30 to 60 days, depending on the registry’s backlog. Once the process is complete, you receive an official title certificate in your name, proving ownership.

Tip: Your attorney should verify that the title is issued without annotations or claims. Any existing encumbrances must be cleared before registration.

Notary’s role and official stamp

A Dominican notary public plays a crucial role in validating the transaction. The notary ensures that all parties understand and agree to the terms of the Act of Sale, confirms the identities of both buyer and seller, and applies the official notarial stamp that makes the contract legally enforceable.

Only notarized and registered sales are legally valid. Attempting to buy property through informal agreements, without a notary, carries legal risks and no protection under Dominican law.

Tip: Choose a notary with experience in commercial real estate transactions. They ensure every legal requirement is met and prevent delays in registration.

Taxes and Ongoing Responsibilities

Owning property in the Dominican Republic involves more than just the purchase. Buyers should be aware of the taxes and obligations that come with ownership. These costs and responsibilities affect your long-term return and should be factored into your investment planning.

Taxes on purchase

When transferring property, buyers are required to pay a transfer tax. This is approximately 3 percent of the property’s registered value. It is paid during the registration process, and proof of payment is required to complete the title transfer.

For example, a commercial space with a registered value of USD 200,000 would incur a transfer tax of around USD 6,000. This tax is separate from legal and notary fees.

Annual property taxes

Owners must also pay annual property taxes, known as the IPI (Impuesto al Patrimonio Inmobiliario). Properties valued under a certain threshold may be exempt, but most commercial assets fall above this limit.

The annual tax is typically 1 percent of the value exceeding the exempt amount. For instance, if your property is worth USD 300,000 and the exempt threshold is USD 150,000, you would pay 1 percent on the remaining USD 150,000—about USD 1,500 annually.

Ownership responsibilities

Once the property is in your name, it becomes your responsibility to maintain it. This includes structural upkeep, utility payments, and building insurance.

If you are leasing the property, you are also responsible for managing tenants, collecting rent, and addressing repairs or legal issues. Many foreign investors hire local property managers to handle day-to-day operations, especially if they do not live in the country full-time.

Tips and Common Pitfalls When Buying Property in the Dominican Republic

Investing in Dominican real estate is accessible, but like any foreign market, it comes with risks. Understanding the common mistakes can save you time and money.

Conclusion

Investing in commercial real estate in the Dominican Republic offers real opportunity, but it requires a clear understanding of the process, legal protections, and market dynamics.

To recap:

• Define your investment goals and select the right property type.
• Understand the legal framework and your rights as a foreign buyer.
• Make a formal offer, negotiate carefully, and finalize the deal through proper contracts.
• Transfer the title legally and register it with the Title Registry Office.
• Stay on top of taxes and ownership responsibilities to protect your investment.

The Dominican Republic remains one of the Caribbean’s most promising real estate markets. With growing infrastructure, strong tourism, and an open legal system for foreign buyers, it continues to attract international investors seeking both income and long-term value.

Still, buying in a foreign country can be complex. That’s why working with experienced local professionals is essential. The agents at Atlantique Sud specialize in helping non-residents navigate the Dominican market with confidence. From property search to title registration, they offer guidance every step of the way, grounded in experience, transparency, and a deep understanding of local regulations.

For anyone considering a commercial investment in the Dominican Republic, now is a strong time to act. With the right support and a smart strategy, this market offers both immediate returns and lasting potential.