Buying Property in Cap Cana as a Foreigner: How It Works

Yes. Foreigners can generally buy property in Cap Cana on the same terms as Dominican citizens, and you don't need to be a resident. The process has five stages: choosing the property, checking the title and its legal status, reserving and signing the purchase agreement, closing and paying the transfer tax, and registering the title in your name.

Can foreigners buy property in the Dominican Republic?

The short answer is yes. Under current law, the Dominican Foreign Investment Law (Law 16-95) generally gives foreign investors the same rights and obligations as Dominican nationals, and that includes owning real estate. Confirm the details with your attorney for your specific situation: the general rule can have nuances depending on the type of property and how you buy it.

In practice, you don't need Dominican residency or a Dominican ID card to buy. A passport is usually enough. Residency is a separate process with its own requirements, and we cover it in our guide to Dominican Republic residency for retirees and investors.

The process follows the same basic logic as a purchase back home but differs in the details: who certifies the title, which document proves the land is properly surveyed, which tax is due on transfer, and where the deed is recorded. Cap Cana also has its own community rules, worth reading before you commit.

One more thing for US buyers: don't assume the mechanics you know are built in. Escrow accounts and title insurance are not automatic parts of a Dominican purchase. Ask your attorney which protections are available and how your funds will be held at each stage.

Pre-construction or resale?

This is the first decision, and it shapes almost everything that follows.

Pre-construction

You buy off-plan or while the building is going up, directly from the developer. You pay in installments during construction and take delivery when the unit is finished. What you are really buying is a commitment: that the developer will deliver what was promised, at the agreed quality and on the agreed terms.

That is why due diligence focuses on the developer's track record, the project's permits, the status of the land, and what the contract says if something is delayed or changes. We go deeper in our pre-construction due diligence checklist.

Resale

You buy a finished unit from its current owner. You can see exactly what you are getting, and the unit usually already has its own individual title certificate. The checks shift: the seller must be the person named on the title, there should be no recorded liens, HOA dues should be paid up, and the physical condition should match the listing.

The Cap Cana projects we currently work on, including Bonita Beach, ABYA and L'atelier, close directly with their developers, and each project page has the current details.

What should you check before any money changes hands?

Due diligence is the least visible part of the process and the one that protects you most. In the Dominican Republic it comes down to three questions: who owns the property, what is recorded against it, and whether the land is properly defined.

The title

Under current law, the Real Estate Registry Law (Law 108-05) provides that ownership is evidenced by a title certificate issued by the Title Registry (Registro de Títulos). Confirm this with your attorney. The first step is making sure that certificate exists, that it is in the name of the seller or the developer, and that its details match the property being offered.

Legal status

The Title Registry can issue a certificate of legal status showing whether the property has mortgages, liens, attachments, or other recorded encumbrances. It is dated, so request one early and get an updated one close to closing. Things can change in between.

The survey (deslinde)

A deslinde is the technical and legal process that precisely defines a parcel's boundaries and records it as an individual lot. A property without an approved deslinde can hold a valid title and still run into problems when you try to sell, subdivide, or finance it later. For condos, your attorney should also review how the condominium regime has been set up and on what terms individual unit titles will be issued.

Add to that building permits, the property's tax status and, for pre-construction, the developer's history. The legal review is done by an independent attorney; our job is to make sure its findings reach you before you sign, not after.

From reservation to recorded title

Names vary by contract, but the sequence looks like this.

Reservation

You sign a reservation agreement and pay a deposit to take the unit off the market while the contract is drafted. Before you pay, get in writing when that deposit is refundable and when it is not.

Purchase agreement and payment schedule

The purchase agreement, known locally as a promesa de compraventa, sets the terms: price, unit, specifications, payment schedule, estimated delivery date, penalties, and what happens if either side defaults. In a pre-construction deal, it is the single most important document.

For new construction, payments are typically tied to construction milestones, with a final balance due at delivery. Every payment should be documented and sent to the account named in the contract, never to an account you received through any other channel.

You will also be asked for documentation about yourself and the source of your funds. Under current anti-money-laundering law (Law 155-17), developers, notaries, and banks must know their clients. Confirm the specifics with your attorney, and have your paperwork ready to avoid delays.

Closing and transfer tax

Closing is when the property actually becomes yours. On a resale, it coincides with paying the purchase price; on a pre-construction purchase, with delivery and the final balance. You sign the final deed of sale, with signatures certified by a notary.

Then, under current law, the real estate transfer tax must be paid to the Dominican tax authority (DGII). Confirm this with your attorney. We don't quote rates or how the tax is calculated here: that depends on the rules in force at the time of purchase, the property's assessed value, and whether the project has an incentive status. Have your attorney calculate it from the actual figures and give you a written breakdown of other closing costs: legal and notary fees, registration fees and, where applicable, survey costs.

Registration

With the tax paid, the file goes to the Title Registry to record the transfer and issue a title certificate in the buyer's name. That certificate is your proof of ownership. Until it is issued, the transaction isn't finished.

Personal name or company? And what is CONFOTUR?

Holding the property

You can buy in your own name, jointly with others, or through a company, Dominican or foreign. Each option has different consequences for taxes, estate planning, rental management, and an eventual sale, both in the Dominican Republic and in the US. Dominican companies are governed by the Commercial Companies Law (Law 479-08); confirm the details with your attorney.

There is no one-size-fits-all answer. Your attorney and a tax advisor who knows both Dominican and US rules should make that call, and deciding before you sign the purchase agreement is far simpler than restructuring afterward.

CONFOTUR (Law 158-01)

The Tourism Development Incentive Law (Law 158-01) created an incentive program for tourism projects in designated areas of the country, administered by the Tourism Promotion Council (CONFOTUR). Under current law, a project that has been classified under the program may pass certain tax benefits on to its buyers, within the scope and conditions set by its classification. Confirm this with your attorney.

The key point: CONFOTUR status belongs to a specific project, not to an area. Being in Cap Cana does not mean a development has it. To find out, ask for the project's classification resolution, check that it is current and that it covers the phase and type of unit you are buying, and have your attorney confirm which benefits apply and under what requirements.

Can you buy without traveling to the Dominican Republic?

Yes, and many buyers do. Most steps can be handled remotely through a power of attorney signed in the US in favor of your attorney or someone you trust, apostilled so it is valid in the Dominican Republic. Payments are made by international wire to the accounts named in the contract.

That said, we recommend visiting at least once before committing significant capital: seeing the destination and the project changes the quality of the decision.

What a family office does at each step

Mercanus Finance does not stop at brokering a sale. We are a real estate family office that supports the entire investment through our real estate investment practice:

• Before you choose: market and product analysis, and which option fits your goals.
• During due diligence: coordinating the review with our external legal alliance and gathering the developer's documentation.
• On structure: laying out the options so your attorney and tax advisor can decide.
• At closing: coordinating the reservation, purchase agreement, payments, and registration with the developer.
• After closing: property management, if the home will be rented or needs looking after while you are away.

Get independent legal and tax advice

Nothing in this article is legal or tax advice, and Mercanus Finance does not provide it. Before you sign anything, work with an independent attorney in the Dominican Republic and a tax advisor who understands your obligations at home.

We work with an external legal alliance that reviews titles, contracts, and structures on the transactions we support, and we coordinate with them, or with the attorney you choose, so every decision is made with the review already done. If you are considering a purchase in Cap Cana, get in touch and we will start with your situation.