Buying Property in the Dominican Republic: Personal Name or Company?

Short answer. A foreigner can hold Dominican real estate in their own name; no company is required. For one home or one rental, personal ownership is usually simpler, and below an annual threshold it can cost less property tax than a company. A Dominican company (SRL) starts to make sense with several properties, outside co-investors or a deliberate succession plan. This is general information; a Dominican attorney and your home-country tax adviser decide the individual case.

Do you need a company to buy property in the Dominican Republic?

No. Foreign individuals and foreign companies have the same ownership rights as Dominican citizens, with no residency requirement and no local partner (Guzmán Ariza). The title is issued in your own name. The only physical limit applies to everyone: the first 60 metres inland from the high-tide line are public.

Buyers who ask about a company usually have heard one of three arguments: liability protection, easier inheritance, or a cheaper resale. Each has some truth, and each comes with a cost that brochures leave out. A Cabarete and Sosúa brokerage says that more than 90% of its own buyers choose personal ownership (DR Properties). That is one agency's client mix, not a statistic for the market, but it matches the general advice: personal name is the default, a company is the exception that needs a reason.

If you are still at the stage of choosing where to buy, our buying guide for the Dominican Republic covers ownership rights, closing costs and the purchase process in short form.

How does the annual property tax differ between a person and a company?

The difference is real and it is mostly arithmetic. Individuals pay the IPI, 1% per year on the combined government-assessed value of all their Dominican real estate above an exempt amount. For 2026 that amount is RD$10,695,494 (Arthur & Castillo). It is reset every January, and it applies to your whole portfolio, not to each property. Two apartments of RD$7 million each do not get two exemptions.

A company pays no IPI. It owes a 1% tax on its total assets instead, with no exempt amount (Arthur & Castillo).

Here is a worked example. It assumes the government-assessed value equals the purchase price, which is not always true, and an exchange rate of about 59 pesos per US dollar, the mid-September 2026 level reported by Infobae.

Assessed value	In pesos (at 59)	Individual: 1% above RD$10,695,494	Company: 1% of full value
US$150,000	RD$8,850,000	RD$0	RD$88,500 (about US$1,500)
US$250,000	RD$14,750,000	RD$40,545 (about US$690)	RD$147,500 (about US$2,500)
US$400,000	RD$23,600,000	RD$129,045 (about US$2,190)	RD$236,000 (about US$4,000)

The second row, step by step: RD$14,750,000 minus RD$10,695,494 leaves RD$4,054,506, and 1% of that is RD$40,545. A company on the same property pays 1% of the full RD$14,750,000.

Two more details tilt the comparison further. An individual aged 65 or older whose only property is a single home is exempt from IPI (Guzmán Ariza); a company never qualifies. And the individual threshold is shared: a second Dominican property uses up exemption that the first one had to itself. For an owner with several units, the gap between the two structures narrows quickly.

What does an SRL cost to set up and run?

An SRL (sociedad de responsabilidad limitada) needs at least two shareholders and allows up to 50 (Biz Latin Hub). A single buyer therefore needs a second person on paper; a spouse or family member commonly fills that role (Sienna Terrenas).

On capital, the sources disagree with each other. The Biz Latin Hub guide says there is no statutory minimum capital and a minimum of RD$100 per share, while its own FAQ names DOP 100,000 as the minimum capital. Ask the attorney who drafts the bylaws which figure applies today. The same guide estimates two to four weeks for incorporation, including registration with the tax authority and a company tax ID (RNC). The one-time cost depends on the attorney, and no verifiable figure was available for this article, so ask for a written quote.

The recurring cost is easier to predict. A company files annual tax returns, and a dormant company must file too (DR Properties). Corporate income tax is 27% in general (Biz Latin Hub). You also need accounting, and a buyer of the company's shares later has to examine the company as well as the property.

Moving a property from your personal name into a company after the purchase triggers a transfer and legal costs (Sienna Terrenas). If a company is likely, set it up before the deposit.

Does a company help with inheritance?

Sometimes, and not automatically. Dominican law governs the inheritance of Dominican real estate whatever the owner's nationality, so a will written in Miami or Toronto does not by itself control the property. A Dominican court has to validate it first (Caribbean Counsel). Dominican succession law also reserves a minimum share for close family, the legítima, which can collide with a home-country estate plan that leaves everything to a spouse.

Two tools exist. Law 544-14 lets a foreign owner elect, in the will, the law of their country of habitual residence (Guzmán Ariza). One Punta Cana firm points out that Dominican courts have not applied that election uniformly and that the question has not been settled at the highest level (Caribbean Counsel). The second tool is the company: heirs inherit shares instead of a deed, which several brokerages describe as tidier (Sienna Terrenas).

Neither tool is a form you sign at the notary. Both need an estate attorney who knows how the registry and the courts treat them. If succession is your main reason to consider an SRL, start the conversation there, not with the incorporation fee.

What changes when you sell?

On resale, the structure changes the tax picture in two places.

Transfer tax. Selling a deed triggers the 3% transfer tax, which the buyer normally pays. Selling the company's shares instead does not involve a title transfer, so the new buyer does not pay it. A brokerage points out that this only helps when the company is properly maintained, free of liabilities and used for nothing else (DR Properties). How the gain on a share sale is taxed is a question for a tax attorney. "The shares avoid all tax" is a claim to verify, not to rely on.

Capital gains. Since the tax reform of June 2026 (Law 30-26), an individual pays a flat 10% on the gain, not on the sale price (KPMG). A company whose exclusive purpose is holding real estate without trading it can also qualify for 10%, while a company engaged in real estate commercially stays at the general 27% (Siempre al Día). That line between commercial and non-commercial is new and untested, so a rental business run through an SRL should ask its attorney how it will be classified. Older articles that quote 25% for individuals are out of date.

Which structure fits which buyer?

Situation	Usually fits	Reason
One home or one rental, one owner or a couple	Personal name	No setup, no annual filings, a shared IPI exemption of about RD$10.7 million
Retiring here with a single home	Personal name	Owners aged 65 or older with one home are exempt from IPI
Several properties or a real rental business	SRL, after modelling the tax	Liability separation and one set of books; asset tax of 1% on full value
Co-investors who are not spouses	SRL	Shares make ownership percentages simple
Estate-planning priority	Depends	Needs an estate attorney, with or without a company

Whatever you choose, the US or Canadian reporting duties that come with owning a foreign company or foreign real estate are a separate question for your own tax adviser. This article does not cover them.

If you want to see what the numbers look like for a specific property, browse the current listings or contact Instyle and ask for the assessed value with the details.

Frequently asked questions

Can a foreigner buy property in the Dominican Republic in a personal name?

Yes. Foreigners hold the same property rights as Dominican citizens, and no residency, local partner or special permit is required. The title is issued in the buyer's own name.

Do I need two people to form an SRL?

Yes. An SRL requires a minimum of two shareholders and allows up to 50. Many single buyers use a family member as the second shareholder, but the arrangement should be reviewed by a corporate attorney.

Is a company cheaper than personal ownership for property tax?

Usually not for one moderately priced property. A company pays 1% on the full assessed value every year, while an individual pays 1% only on the value above about RD$10.7 million across all Dominican property. The picture shifts with the number of properties and the rental income.

Can I transfer my property into a company after I buy?

Yes, but it is a new transfer with its own legal costs. It is cheaper to decide before the deposit.

Does an SRL remove forced heirship?

Not automatically. Heirs would inherit shares, which can simplify succession, and Law 544-14 allows a foreign owner to elect their home law in a will. Dominican courts have not applied that election uniformly, so both routes need an estate attorney.

Sources

1. Guzmán Ariza, "Introduction to the Legal Framework: Ownership of Real Estate": https://drlawyer.com/introduction-to-the-legal-framework/
2. Guzmán Ariza, "Buying Real Estate in the Dominican Republic": https://drlawyer.com/buying-real-estate-in-the-dominican-republic/
3. Arthur & Castillo, "Dominican Real Estate Property Tax" (IPI 2026 threshold, company asset tax): https://aclaw.com/dominican-real-estate-property-tax/
4. DR Properties, "Should You Buy Dominican Republic Real Estate in Your Personal Name or in a Corporation": https://www.drproperties.ca/should-you-buy-dominican-republic-real-estate-in-your-personal-name-or-in-a-corporation/
5. Sienna Terrenas, "Personal Name vs Dominican Company": https://www.sienna.do/blog/personal-name-vs-company
6. Biz Latin Hub, "Company Formation in the Dominican Republic": https://www.bizlatinhub.com/steps-incorporate-company-dominican-republic/
7. Caribbean Counsel, "Inheritance of Dominican Property by Foreign Heirs": https://www.caribbeancounseldr.com/blog/foreign-heirs-dominican-property/
8. KPMG, "Dominican Republic: Changes to tax code concerning income tax, real estate, inheritance and gift tax": https://kpmg.com/us/en/taxnewsflash/news/2026/07/dominican-republic-tax-code-changes.html
9. Siempre al Día, "Ganancia de capital en venta de inmuebles RD: Ley 30-26": https://siemprealdia.co/republica-dominicana/impuestos/ganancia-de-capital-en-venta-de-inmuebles/
10. Infobae, USD/DOP exchange rate, September 16, 2026: https://www.infobae.com/noticias/2026/09/16/precio-del-dolar-hoy-en-republica-dominicana-cotizacion-de-cierre-del-16-de-septiembre/

Last reviewed: October 1, 2026