As everywhere in the world, financing real estate in the Dominican Republic has many facets, and the Dominican Republic is no exception. Here, we answer the most common questions about financing and finally getting your slice of paradise. During my 15-year career in Caribbean real estate, I have answered almost every real estate question imaginable!

1. Can a foreigner request financing in the Dominican Republic?

Yes, it is possible and quite straightforward for foreigners to obtain financing for a 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 rules, but they are mostly similar. Common requirements include:

• Identification documents: Copy of passport (minimum 6 months validity), ID of your country of origin and spouse (if married), and immigration status proof (passport entry stamps).
• Completed and signed mortgage loan application form and due diligence documents.

Evidence of income for customers residing abroad:

• Income Tax Declaration or last year’s tax declaration.

Economic situation:

• Credit score of 700 or above.
• TransUnion Credit Bureau Report (30 days validity).

If you reside in the US or Puerto Rico, or have American nationality:

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

3. What steps do you need to take to finance real estate in the DR?

Steps depend on the type of property: Banks do not usually get involved in financing properties under construction until they are completed. This is different for resale properties. Steps include:

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

Financing a resale property

Financing a resale property is straightforward. Once you find a property, sign a purchase agreement with a condition allowing you to cancel without penalty if financing fails. Most banks finance 80–85% of the assessed value, or 70% if outside touristic areas. Steps:

1. Due diligence of property and buyer (proof of income, financial statements, etc.).
2. Property appraisal by the bank.
3. Tripartite agreement drafted and signed by bank, buyer, and seller.
4. Bank handles all formalities: contracts, transfers, etc., eliminating the need for a lawyer.

Financing an under-construction property

For under-construction properties, the process is similar but longer. Payments are made directly to the developer during construction (usually 50–60% upfront, balance financed by a bank). The bank only becomes involved once construction is complete.

4. Which banks should I work with?

Local banks are now open to financing foreigners, though requirements vary. Banks like Scotiabank and La Nacional may not require residency. Financing is easiest for clients from the USA and Canada, while Europeans may face more difficulty. Major banks have offices or connections abroad to simplify documentation. The process may be slow, so plan accordingly. For more information, contact me @Adriaan Smit – Sun Life Realty or via WhatsApp: +1.829.975.79.25.

Adriaan Smit – Real Estate and Financial Advisor