As everywhere in the world, financing real estate in the Dominican Republic has many nuances, and the DR is no exception. Here is a Q&A to help you navigate financing in the Dominican Republic and (finally) get your slice of paradise.

During my 15-year career in Caribbean real estate, I have answered almost every real estate-related question already! Below are the most common questions.

1. Can a foreigner request financing in the Dominican Republic?
   Yes, it is possible and generally straightforward for foreigners to obtain financing for property in the DR.
2. What are the most common requirements to finance real estate in the DR?
   Most banks and financial institutions have their own procedures, but requirements are basically the same.

Identification documents:

• Copy of passport (minimum 6 months validity)
• Identification document of the country of origin and of your spouse, if married
• Information on immigration status issued by competent authority (e.g., passport entry stamps)
• Completed and signed mortgage application form and due diligence

Evidence of Income for Customers Residing Abroad:

• Income Tax Declaration or last year’s tax declaration

Economic situation:

• Credit score 700 or above
• Trans-Union Credit Bureau Report (30 days validity)

If you reside in the US or Puerto Rico, or have American nationality (even as a second nationality):

• Form-Authorization consultation International Bureau for debtor and/or surety, signed by the parties
• 2 International Bureau Reports (2 months validity)

3. What steps are needed to finance real estate in the DR?
   Steps depend on the type of property. If the property is under construction, the bank usually becomes involved only after completion. For resale properties, banks are involved earlier.

• If it is a resale property
• If it is a property currently under construction

Financing a resale property
Financing a resale property can be straightforward. Once you find a property, sign a purchase agreement and include a condition allowing cancellation without penalty if financing is not obtained.

For resale properties, most banks finance 80–85% of the assessed value in touristic areas. For properties outside tourist zones, financing is typically up to 70%.

Steps when financing a resale property:

1. Due diligence of property and buyer by the bank, including proof of income, financial statements, and more.
2. Appraisal of the property by the bank.
3. Tripartite agreement drafted and signed by bank, buyer, and seller.
4. Bank manages the formalization of the agreement, contracts, and transfers. No lawyer is needed as the bank handles property transfer.

Financing a property under construction
The procedure is similar but takes longer. The bank becomes involved only after the property is completed. During construction, buyers make payments to the developer based on agreed milestones, often 50–60% during construction, with the remainder financed post-completion.

Which banks should I work with?
Local banks are now more open to financing foreigners. Some, like Scotiabank or La Nacional, do not require residency. Others are stricter. Financing is generally easier for clients from the USA and Canada; Europe is more challenging. Major banks often have offices or connections in the US and Canada for easier client verification.

Smaller financing amounts are also possible. Banks can adapt to your situation, but the process may take time, so be patient.

Looking for more information? Contact me at:

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