One of the major benefits of investing in real estate in the Dominican Republic is the ability to take advantage of developer financing and payment plans for pre-construction projects.
Most developers with pre-construction projects have an in-house financing option for investors. These payment plans typically involve a down payment—around 10% to 30% of the purchase price—followed by scheduled installments (monthly or quarterly) throughout the construction period (usually 20% to 40% of the price) and a final lump sum payment or remaining balance upon delivery of the unit. Additionally, the payment plans often are interest-free.
This approach allows investors to spread out payments, reducing the need for a substantial upfront capital investment to secure a property. Another key benefit of developer financing is not having to deal with extensive loan applications and credit score requirements.
Further, once the project is completed and ready for delivery, investors can secure a mortgage to cover the final lump-sum payment. The Dominican Republic is one of the few countries that offers mortgages to foreign buyers, including those without residency or citizenship status. In some cases, the developers have existing relationships with local banks.
Loan-to-value ratios generally range from 60% to 80%, depending on the bank, residency status, and credit profile. Mortgage interest rates range from 8% to 13% for up to 25 years.
Securing a mortgage for the final payment allows investors to maintain liquidity and invest in other real estate or investment opportunities.
These financing options make it easier and more affordable for foreign investors to buy property in the Dominican Republic, helping them grow their investments while managing their cash flow.
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Maria Abreu is the CEO and Managing Attorney of Abreu & Associates, a law firm practicing exclusively in Dominican Republic Immigration and Nationality law. She is also the founder of Retire and Invest DR. This organization hosts conference events for foreigners interested in living, retiring, and investing in the DR. You can contact Maria at: mabreu@abreuimmigration.com.