Legal · Property ownership structure How should you hold the title?
Personal name, a Dominican SRL, a foreign corporation, or a fideicomiso — each changes your liability, taxes on rental and resale, inheritance, and cost. Tell us about the purchase and we'll rank the fit.
Don’t forget succession
Forced heirship applies to DR real estate regardless of your home-country will: a reserved portion (la legítima) goes to children and a surviving spouse. Holding through an SRL or fideicomiso can convert "inheriting real estate" into "transferring shares" — decide before you buy.
Side by side
4 structures| Personal ★ | SRL | Foreign | Fideicomiso | |
|---|---|---|---|---|
| Liability shield | ✕ | ✓ | ✓ | ~ |
| Avoids forced heirship | ✕ | ~ | ~ | ✓ |
| Resale via share transfer | ✕ | ✓ | ~ | ✕ |
| Privacy | ✕ | ~ | ✓ | ✓ |
| Rental tax | Indiv. | 27% | unsettled* | 189-11 |
| Setup cost | Low | Medium | High | High |
| Ongoing cost | None | Annual | High | Trustee |
Questions people ask about this
Should I buy DR property in my own name or through a company?
It depends on how many properties you hold, whether you rent, your nationality, and your estate plans. A single vacation home is usually simplest in personal name; multiple properties or a need for liability protection point to a Dominican SRL; a foreign corporation mainly suits privacy, larger holdings or existing company structures. Use the tool above to see your fit.
Why is rental income taxed differently inside an SRL vs a foreign company?
A Dominican SRL/EIRL pays 27% on net rental income, but some advisors hold that a foreign entity is taxed like an individual on DR rental instead. That treatment is unsettled — non-resident owners generally see 27% withheld on rental payments — so confirm it with a DR tax advisor before choosing a structure for it. The catch: US persons owning through a foreign corporation face heavy annual IRS reporting (Forms 5471, 8938, 3520) that often erases the benefit.
What is forced heirship and does it affect me?
Dominican forced heirship reserves a portion of an estate (la legítima) for children and a surviving spouse, and it applies to DR real estate regardless of your home-country will. Holding through an SRL or fideicomiso can convert "inheriting the property" into "transferring shares" — a decision best made before you buy.
Is a US or common-law trust recognized in the DR?
No. Common-law trusts are not recognized. The local equivalent is the fideicomiso under Law 189-11, which requires a licensed fiduciary. For estate planning or asset segregation, that is the vehicle to use.
Can I change the structure later?
Yes, but transfers between structures can trigger transfer tax and other costs, so it is far cheaper to choose well at purchase. That is exactly what this tool is for — confirm the final choice with a DR attorney and your home-country accountant.