DR Property Due Diligence Checklist

Get the Investment Score, rental projections, and market comparison before making any decisions.

Confirm the exact neighborhood, proximity to beach, airport access, and community type. Google Maps street view can help.

Compare price per square meter against similar properties. Evalua reports include value ratio vs. market average.

Short-term rental (condos near beach), long-term rental (homes in residential areas), or personal use. Each has different ROI profiles.

Include closing costs (3-5%), furnishing, and first-year operating expenses. Use the transaction cost calculator.

Must be independent from the seller and the real estate agent. Verify they are registered with the Colegio de Abogados. Budget $1,500-$3,000 for legal fees.

Request the original title certificate from the Registro de Títulos. This is the only legal proof of ownership in the DR.

Your attorney should verify: no liens, no encumbrances, no pending lawsuits, and that the seller is the actual registered owner.

Confirm the surveyed boundaries match the physical property. An outdated or missing deslinde is a red flag.

Verify with the local ayuntamiento (city hall) that the construction has proper permits and no outstanding violations.

Some coastal and forest areas have building restrictions. Verify with Medio Ambiente (Ministry of Environment).

Ask for the CONFOTUR resolution number and verify it directly with the CTC (Consejo de Turismo y Competitividad).

Benefits run up to 15 years from the resolution date, not your purchase date. Calculate how many years of exemptions remain.

Model the actual dollar savings: transfer tax (3%), annual IPI (1%), and rental income tax exemption over the remaining period.

CONFOTUR exemptions go to the buyer purchasing directly from the certified project — Ley 158-01 excludes later transfers to third-party acquirers. On a resale, budget for the full 3% transfer tax and annual IPI unless your attorney confirms otherwise in writing.

Use actual market data (Evalúa's market model, updated May 2026) — not the developer's projections. Factor in seasonality and realistic occupancy (35–60% depending on management, location, and quality).

Include: property management ($150/mo + ~20% commission), utilities, HOA, insurance, maintenance reserve (1.5–2% of value), and tax obligations.

Dominican mortgage rates are 9-14%. Foreign buyer financing options are limited — most purchases are cash. Factor in currency exchange.

Check price per square meter vs. comparable sales. Evalua reports include this automatically.

DR rental income tax is 27% on net income (or 1.5% flat on gross). You may also owe taxes in your home country. Consult a cross-border tax advisor.

Photos can be misleading. Walk the property, check construction quality, plumbing, electrical, and structural integrity.

The DR has a rainy season (May-November). Check for water damage, drainage issues, and roof condition.

Confirm: water (CAASD/local), electricity (EDENORTE), internet availability, road access, and backup systems (inverter, cistern).

If in a development: review HOA bylaws, monthly fees, reserve fund, maintenance quality, and management company reputation.

The promise of sale should include: price, payment schedule, penalties for non-compliance, and closing timeline (typically 30-60 days).

Standard deposit is 10% of purchase price. Should be held in escrow by the attorney or a neutral third party — never directly to the seller.

Both parties sign the Acto de Venta before a Dominican notary. The notary authenticates signatures and the document.

Transfer tax is 3% of assessed value (exempt if CONFOTUR). Your attorney files with the Registro de Títulos. Timeline: 30-90 days for new certificate.