Investing in the Dominican Republic from Madrid or Barcelona is perfectly feasible without traveling. What changes isn't the process—it's the logistics.
Investing in the Dominican Republic from Spain does not require residency, a special permit, or a local company: Dominican law does not restrict the purchase of real estate by foreigners. The transaction can be completed remotely by granting a power of attorney at the Dominican consulate in Spain, which allows a local attorney to sign on your behalf. The three key differences compared to buying property in Spain are the logistics of funding the purchase (an international transfer in U.S. dollars, with proof of funds), the tax implications between the two countries, and the fact that title due diligence is conducted under Dominican Law 108-05 rather than before a Spanish notary. This guide outlines the steps in the order in which they actually occur.
Is it possible to invest in the Dominican Republic without traveling there?
| Stage | Long-distance? | How to |
|---|---|---|
| Project Selection | Yes | Video calls, floor plans, virtual tours |
| Title Due Diligence | Yes | Your lawyer in the Dominican Republic will handle it |
| Unit Reserve | Yes | Transfer and Digitally Signed Contract |
| Signing of the Purchase Agreement | Yes | With consular authority |
| Payment of the ITBI and Registration | Yes | Your lawyer will handle it |
| Delivery and Receipt of the Unit | Best experienced in person | Or through a trusted representative |
A visit isn't required, but it's recommended at least once—preferably before making a reservation or at check-in. Seeing the area on a Saturday afternoon is something a rendering simply can't replace.
Step 1: Consular Authority
This is the document that makes everything else possible. It is issued by the Dominican consulate in Spain (there are consulates in Madrid and other cities) and authorizes your attorney in the Dominican Republic to sign documents and handle matters on your behalf.
It is advisable to draft it with a Dominican attorney before going to the consulate, so that it includes exactly the necessary powers of attorney: to sign a contract, pay taxes, apply for title registration, and open an account if necessary. A power of attorney that is too limited will require you to repeat the process.
We detail the general legal process—which applies to any foreign buyer—in the guide to buying property as a nonresident.
Step 2: Due diligence—which is not the Spanish kind
In Spain, you are accustomed to the “nota simple” from the Property Registry and the involvement of a notary. In the Dominican Republic, the functional equivalent is the certification of the property’s legal status, issued by the corresponding Title Registry under the system established by Law 108-05.
What you need to verify is the same as always: that the seller is the owner, that there are no mortgages, liens, or objections, and that the property description matches. The legal framework and procedures are set forth in the Real Estate Registry.
During the presale phase, the focus shifts: since the unit doesn't exist yet, the master deed is verified, and, above all, the management trust established under Law 189-11, which protects your contributions. We explain this in the article on real estate trusts.
Step 3: Transfer the money to invest in the Dominican Republic
When investing in the Dominican Republic, this is where most transactions get stalled—and almost always for the same reason: failing to prepare the proof of funds' origin in advance.
- Currency. The investment-oriented new-construction market is priced in U.S. dollars. From Spain, this involves converting euros to dollars and the associated costs.
- International transfer. Your Spanish bank will ask for documentation regarding the destination of the funds. Have the contract and the recipient's information ready.
- Proof of origin. Both the sending and receiving banks follow anti-money laundering regulations. Prepare the documentation that proves where the money comes from.
- Declaration of Foreign Investments. Spain has reporting requirements for residents who hold assets and rights outside the country. Check with your advisor: the thresholds and forms change, and it’s best not to wing it.
If you plan to finance part of the purchase through a Dominican bank, the terms for non-residents and the formula for calculating the monthly payment are explained in “How to Calculate a Mortgage Loan in the Dominican Republic.”
Step 4: Taxes in Both Countries
When investing in the Dominican Republic, the purchase is subject to a 3% ITBI tax based on the value determined by the DGII’s appraisal, unless the project qualifies under the Confotur Law, which exempts it from that tax and from real estate wealth tax for 15 years. Verify this in the MITUR registry.
In Spain, as a tax resident, you have reporting and tax obligations regarding income earned abroad. Spain and the Dominican Republic have a double taxation treaty, but how it applies to your specific case depends on your personal circumstances and the type of income.
Do not make tax decisions based on this article or any other. Talk to a Spanish tax advisor who is familiar with foreign investments before signing anything. This is the area where improvising can cost you the most.
Step 5: What Happens After You Make a Purchase
If your goal in investing in the Dominican Republic is to generate rental income, you’ll need a local operator: no one can manage guests from a different time zone. The time difference between Spain and the Dominican Republic is five or six hours, depending on the time of year, which makes it impossible to handle issues in real time.
It is important to establish from the outset who manages the portfolio, how it is settled, and how often reports are submitted. The portfolio overview and the areas where we operate are focused on investments in Punta Cana.
Frequently Asked Questions
Can a Spanish citizen invest in the Dominican Republic?
Yes. Dominican law does not restrict the purchase of real estate by foreigners nor does it require prior residency. The process is the same as for any nonresident buyer.
Do I need to travel to complete the purchase?
No. With a power of attorney issued at the Dominican Consulate in Spain, your lawyer can sign documents and handle matters on your behalf. Even so, it is advisable to visit the area at least once.
What currency is used for purchases?
In the investment-oriented new-construction market, the U.S. dollar is the standard currency. It is advisable to factor the cost of converting from euros into the budget.
Do I have to report my property in the Dominican Republic to the Spanish tax authorities?
Spain has reporting requirements for residents with assets abroad, and the thresholds and forms are subject to change. Consult a Spanish tax advisor before making a purchase, not after.
Is there a double taxation treaty between Spain and the Dominican Republic?
Yes, both countries have a double taxation treaty. How it applies to your situation depends on your specific tax circumstances and the type of income, so you should have an advisor review it.
At Garrigó Real Estate, we guide buyers from Spain through the entire process: coordination with your attorney, power of attorney, due diligence, and closing.
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