Question 1

What is the difference between a lot and raw land in the Dominican Republic?

Accepted Answer

A "lot" typically refers to a defined parcel within a residential subdivision, gated community, or commercial development that comes with road access, surveyed boundaries, and proximity to utilities. "Raw land" or "land" is a broader category that includes undeveloped parcels that may require additional infrastructure work before building. Lots are generally more building-ready, while raw land may offer more flexibility in terms of size and use but requires more upfront investment in access roads, water, and electricity.

Question 2

What should I verify before buying a lot in the Dominican Republic?

Accepted Answer

Before purchasing a lot, confirm that the property has a valid Certificate of Title, a current deslinde (boundary survey with GPS coordinates), and that all property taxes are current. Verify the zoning classification with the local municipality to ensure your intended use is permitted, and confirm access to utilities including water, electricity, and road access. If you plan to build, factor in the cost and timeline for obtaining building permits from the municipality and the Ministry of Housing and Buildings (MIVED).

Question 3

What are the building requirements after purchasing a lot?

Accepted Answer

Building on a lot in the Dominican Republic requires a municipal permit from the local government, construction plans signed by an architect or engineer registered with CODIA, and a final building license from the Ministry of Housing and Buildings (MIVED). Larger projects may also require an environmental impact assessment. The permit process typically takes several months, and construction costs in the Dominican Republic are generally well below North American and European levels, making custom builds an attractive option for lot buyers.

Question 4

Can foreigners buy property in the Dominican Republic?

Accepted Answer

Yes. The Dominican Republic grants foreigners the same property ownership rights as Dominican citizens. You can purchase land, condos, villas, or commercial properties in your own name with full fee-simple title — no special permits, local partners, or government approval required. For a step-by-step walkthrough of the buying process, see our guide to buying property in the DR.

Question 5

Do I need to be a resident to buy property in the Dominican Republic?

Accepted Answer

No. There is no residency or visa requirement to purchase property. You can buy real estate on a tourist visa, and the process typically takes 30 to 60 days from offer to title registration. In fact, owning property can actually help you qualify for Dominican residency if you choose to apply later. Our buying guide covers the full process.

Question 6

What are the closing costs when buying property in the Dominican Republic?

Accepted Answer

Budget approximately 3.5% to 5% of the purchase price in total closing costs. The largest component is the 3% property transfer tax, assessed on the government-appraised value. Legal fees for title search, documentation, and attorney services typically add 1% to 1.5%. There is no VAT on residential property transfers. Properties in CONFOTUR-approved projects may be exempt from the transfer tax entirely.

Question 7

What is CONFOTUR, and how does it reduce property taxes?

Accepted Answer

CONFOTUR (Law 158-01) is a Dominican government incentive program that grants up to 15 years of tax exemptions for properties in approved tourism developments. Qualifying buyers are exempt from the 3% property transfer tax at closing and the 1% annual property tax (IPI) for the duration of the benefit period. The exemption is tied to the development project, not the buyer. Learn more in our detailed CONFOTUR guide.

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