In my more than twenty years advising on international real estate transactions, I've identified a pattern that repeats itself with surprising frequency: the foreign investor arrives in the Dominican Republic with capital, enthusiasm, and a property already chosen. But they arrive without an answer to the most important question no one asked them before signing: In whose name will you buy? In Dominican law, that decision isn't an administrative detail—it's a legal decision with tax, property, and inheritance consequences that extend far beyond closing day.
The starting point: in the Dominican Republic, foreigners can buy freely
The Dominican Republic does not impose restrictions on foreign ownership of real estate. Individuals and legal entities of any nationality can acquire, possess, and transfer real estate in Dominican territory under the same conditions as Dominican citizens. That is the starting point. But the absence of restrictions does not mean the absence of consequences. And it is precisely there that the decision many make without advice begins.
Foreign investors essentially have two options: to purchase property personally—as an individual—or to purchase through a company, whether an entity incorporated in their country of origin or a company established in the Dominican Republic. Each route produces distinct legal effects in three dimensions that no investor can afford to ignore: tax, property, and inheritance.
In Dominican law, that decision is not an administrative detail — it is a decision that defines how you tax, protect, and transfer your investment.
The fiscal dimension: not everything that seems like an advantage, is
The Property Tax, known as IPI and regulated by Law 18-88, is one of the primary factors that differentiates the two tax regimes. Individuals are subject to IPI only on the portion of their real estate assets exceeding the exemption threshold, which the DGII (General Directorate of Internal Revenue) set at RD$10,695,494 for 2026—an amount that is adjusted annually for inflation. Below this threshold, individuals do not pay IPI. Legal entities, on the other hand, are not subject to IPI but rather to the asset tax, which applies to the total value of their assets without any minimum exemption.
This means that for an investor acquiring a moderately valued property, buying in their own name can represent a real tax advantage. But for an investor with multiple properties or high-value assets, a corporate structure can offer more efficient tax planning. The tax implications depend on each investor's specific profile—and that calculation should be done before signing, not after.
The asset dimension: what a foreign company can and cannot do
A common question among investors is whether a company incorporated abroad can purchase property directly in the Dominican Republic. The answer is yes—and the process is simpler than many realize. If the foreign company will not be conducting business in the Dominican Republic and only intends to own the property, it does not need to establish a domicile in the country or obtain a Commercial Registry. The Dominican Republic's Internal Revenue Service (DGII) has established that, when processing the transfer tax payment, the Valuation Unit internally assigns the company a Taxpayer Identification Number (RNC) as a foreign holding company, without requiring any additional documentation.
This structure—the foreign holding company—offers the investor a separation between their personal assets and the acquired property, which can be relevant in terms of civil liability. However, this separation has limits that Dominican law clearly imposes, and which no contract can circumvent.
In Dominican law, that decision is not an administrative detail — it is the difference between protecting your assets and unknowingly exposing them.
The succession dimension: what no one sees coming
In my professional experience, this is the most overlooked and potentially most costly consequence. When a foreigner acquires real estate in the Dominican Republic in their personal name and dies, that property becomes subject exclusively to Dominican law, regardless of what their will stipulates in their country of origin. This is established in Article 3 of the Civil Code, under the principle of lex rei sitae: real estate is governed by the law of the place where it is located.
What does this mean in practice? The Dominican Civil Code mandates a reserved inheritance portion for the children and ascendants of the deceased. Any foreign testamentary provision that violates this reserved portion will be ineffective with respect to assets located in the Dominican Republic. An investment structured through a corporation, however, does not die with its owner—the shares are transferred according to the corporation's rules and the investment plan established by the investor during their lifetime.
The question you should ask yourself before signing
There's no single answer to the question of how to buy. The right answer exists for each investor profile, depending on their objectives, their tax situation in their home country, the value and number of properties they plan to acquire, whether they're buying to resell quickly, and their long-term wealth plan. What is universal, however, is the timing of this decision: before signing the contract, not after.
Do you own more than one property in the Dominican Republic, or are you planning to acquire more? Have you checked whether your foreign will truly protects your assets in this country? Do you know if the structure you used to purchase your property today is the best way to protect your future heirs?
In Dominican law, that decision is not an administrative detail — the specialized legal advice you obtained before signing is what will determine if your investment is truly protected.
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