There are no restrictions on foreigners purchasing real property in the Dominican Republic. Formerly, Decree 2543 of March 22, 1945, and its amendments required that foreigners obtain prior Presidential approval except in certain cases.
Decree 21-98 of January 8, 1998, abolished this regulation and established it as the only requirement that the Title Registry Offices keep a record, for statistical purposes, of all purchases made by foreigners.
There are no restrictions on foreigners inheriting title to real property in the Dominican Republic. Inheritance taxes have been recently lowered to 3% of the appraised value of the estate. If the beneficiary resides outside the Dominican Republic, inheritance taxes are subject to a 50% surcharge, raising the tax rate to 4.5%.
Inheritance of real estate is governed by Dominican law which provides for forced heirship: part of the inheritance must go to certain heirs by law.
For example, a foreigner with a child must reserve 50% of the estate to that child despite the existence of a will or of the law of his country of residence. To avoid the application of Dominican rules of inheritance to the estate, it is advisable for foreigners to hold real estate indirectly through a holding company.