Foreigners are allowed to purchase property in the Dominican Republic. As a foreigner, you must fulfill the same requirements as Dominicans, and you will need to obtain a tax identification number (Registro Nacional del Contribuyente (RNC)) to convey property in your favor.
Before the closing date, all parties of the transaction should review and approve the documents to be executed, review any power of attorney, if applicable, and obtain the title research of the property. Once the closing date is agreed upon, buyer and seller should sign and exchange the following documents:
Purchase and Sale Agreement: Buyer and seller must sign a purchase and sale agreement before a Public Notary who will authenticate the signature of each one. This agreement should contain the legal description of the property, the purchase price and other specific conditions of the purchase.
Original of the Title Certificate and Survey Plan: Seller must deliver the original of the title certificate (Duplicado del Dueño) of the subject property and its survey plan.
Copy of Identification Documents: The corresponding Title Registry where the property is located will request copy of the passport (foreigners) or Dominican ID card (Cédula de identidad y electoral) Transfer Tax to convey and record the property in favor of the buyer is approximately 3% of the property market value established by the Internal Revenue Department (DGII) or the purchased price indicated in the purchase and sale agreement. This tax is paid by the buyer before the deposit of the documents at the Title Registry for the transfer of the Title. Payment of minor expenses such as Internal Revenue stamps and receipts.
After payment of taxes, the buyer or its representative has to deposit, for recordation at the corresponding Title Registry the following documents:
- Original of the Purchase and Sale Agreement;
- Title Certificate of the property (Duplicado del Dueño);
- Original documents evidencing tax payment;
- Copy of Buyer’s and Seller’s identification card (Cédula de Identidad y Electoral or passport), and If applicable, any document authorizing the Title Registry to cancel any mortgage affecting the property.
For the Issuance of the Title Certificate:
The Title Registry Office will review that all requirements and documents are fulfilled and completed to proceed with the recordation of the new sale. The Title Registry will cancel the submitted Title Certificate and issue a new Title Certificate in favor of the Buyer. The time from the filing of the documents to issue the new Title Certificate may vary from time to time, depending on the amount of work that the Title Registry Office has at that moment. Once issued the new Title Certificate in its favor, Buyer may (with its personal ID) retire it or may grant a Power authorizing his attorney to pick it up on his behalf.
The entire process, from the sign of the purchase and sale agreement, may take aproximately 4 months.
- Transfer Tax. To convey and record the property in favor of the buyer, it is required the payment of 3% of the property value established by the Internal Revenue Department (DGII) or the purchased price indicated in the purchase and sale agreement, the greater of these two values. This tax is paid by the buyer before the recordation of the documents at the Title Registry.
- Payment of minor expenses such as Internal Revenue stamps and other receipts.
Foreign currencies fluctuate from day to day according to the market. You can check the exchange rates directly with commercial banks and exchange offices, and the Central Bank also publishes this information on a daily basis (business days). See www.bancentral.gov.do/tasas_cambio/TMC4001.PDF