From May 1, 2025, the contract must specify exactly what was paid, how, and when. If it says "transfer," vouchers must exist. If it says "check," a copy must be provided; cash payments are only accepted if the amount does not exceed half a million.
SANTO DOMINGO. – Brenda was preparing a longaniza stew for dinner in her small apartment in New Jersey when the phone rang. It was César, her cousin. As soon as she saw the name, she smiled: “This one’s sure to come with another lesson.”
– Cousin… listen, last night when I got off the bus, I remembered something important that I don't want to leave hanging: the payment methods. That's now the law in the Dominican Republic, since May 2025. If you buy without following that, you could get into trouble… or worse, they might not register the transfer of the apartment.
Brenda turned down the heat on the stove and sat down.
"Oh my God, César, what is it now? Don't scare me."
-Relax. We'll get together on Saturday and I'll explain it to you properly. How about 6 o'clock at El Maleconcito, the one on Dyckman? I'll explain it over mangú, a steak, and a beer, the way it should be.
Brenda burst out laughing.
"Okay. See you there. But don't come at me with more taxes because I've already made an emotional budget."
No, it's not a tax. It's a procedure. But we'll talk on Saturday... and listen carefully, you told me several agents have made you offers. Don't pay a reservation in cash or through Zelle, not even if they beg you. I'll tell you why later. Bye!.
And she hung up. Brenda didn't sleep well; the phrase haunted her: "They didn't register the transfer." That seemed serious. And she was determined: that house in the Dominican Republic was going to happen, no matter what.
The dinner that cleared up the payment methods mess
Dyckman's Maleconcito at 6:00 pm was still clear, although the atmosphere seemed like a piece of Santo Domingo embedded in Manhattan: bachata in the background, plates of sancocho and white rice, the aroma of fish soup, the tostones sizzling.
César arrived wearing a leather jacket, a scarf, and with that air of someone who always has an opinion ready.
Brenda greeted him with a tight hug.
– Tell me, professor, what is it that you're going to confuse me with now?
– Just relax, sit down and order something. Nothing you explain when you're hungry ever turns out well.
They ordered their classic recipe: mangú with fried white cheese for her; mofongo with churrasco for him.
When the waiter walked away, César opened his folder (of course he had a folder).
First, since May 1, 2025 , in the Dominican Republic, all real estate transactions must clearly demonstrate the method of payment. Otherwise, the General Directorate of Internal Taxes will not register the transfer and the process will be stalled.
Brenda's eyes widened.
"What do you mean, 'prove'? Look, I'm not like your students, speak plainly to me."
César began to list with his hand, as if he were in front of a jury:
1. No cash for large amounts
– If the property costs more than RD$500,000, the payment must be made by banking means: transfer, certified check, cashier's check or remittance letter.
– What if I pay a down payment in cash because it's convenient for me?
– No! They can reject the title transfer and you don't want that, believe me.
2. Everything must match: contract = receipts
– The DGII now checks that the contract states exactly what was paid, how, and when. If the contract says "transfer," there must be vouchers. If it says "check," there must be a copy.
Brenda noted: Keep all the papers.
3. No "I'll give you a better price in the contract"
Listen carefully, sellers sometimes try to declare less, supposedly to pay less ITBIS (VAT) or less capital gains tax. DON'T GET INVOLVED IN THAT . If the DGII (General Directorate of Internal Revenue) detects discrepancies, they won't register the transfer and you'll be left without the title.
Brenda: Absolutely not. I want my papers clean.
4. If you use US currency, you must be able to prove it
– Because the DGII (Dominican Republic's tax authority) might ask for it… and the IRS too if you're audited. Keep all of that, because it's proof that it's your money.
– Oh, but everything is such a mess, César.
– Cousin, buying a home has always been a hassle, it's just that people used to realize it too late. Now at least I'm warning you.
5. The most important part
– If the seller refuses to provide receipts or insists on “informal” payments, you leave. You stand up and leave. Because if you pay and they don't provide documentation, the DGII (Dominican Republic's tax authority) won't transfer anything to you. And you're not in the mood for excuses.
Brenda took a deep breath and rolled her eyes.
"So, what should I do? Give me the basics, so I don't mess this up. Let me write this down."
The easiest payment methods are:
✔ Always pay by bank transfer or certified check.
✔ Avoid cash. If they try to pressure you or try to trick you, that's a red flag.
✔ Demand receipts for every payment. For everything!
✔ Make sure the contract clearly states how you're paying.
✔ Keep digital and physical copies of everything.
✔ Since you live outside the Dominican Republic, use the same name on your Dominican and US bank accounts (document consistency).
✔ Before signing, verify and make sure the seller is willing to have everything notarized.
Brenda closed her notebook. She looked at César with a mixture of gratitude and weariness.
"Cousin, look, if you do this the right way, you'll buy your house without any drama. And you'll enjoy it. But if you take the easy way out, I swear you'll regret it."
– Okay, I'm listening and I'll take your advice. You're a pain... but a useful one.
In the end they toasted with a passion fruit drink, while outside, Manhattan continued with its gray winter sky.
Brenda, though a little overwhelmed, felt one step closer to Santo Domingo. And above all, closer to her dream home.
Her cell phone rang and she answered: Hello! -wait César, it's Teresa, my friend- tell me Teresa, how are you?
Brenda, I'm calling because a friend who sells and rents houses is offering me an apartment in Gascue. I think you might be interested; I'm going to see it tomorrow.
– Wow! And you're in Santo Domingo? That's great, look, call me tomorrow morning, I'm in the middle of something right now, greetings over there.
And he continued his conversation with his cousin César, laughing and sharing anecdotes from when they were children.
