Technical article
Colombia, Ecuador and the Dominican Republic: What a Foreign Buyer Holds and What the Family Reserves
The sources say each country reserves part of the estate, and the share differs.
Imagine a widower from Florida with three children. He wants to leave a house in Colombia, Ecuador or the Dominican Republic to just one of them, the child who lives nearby. Can he? The sources say each country reserves part of the estate, and the share differs.
What a foreign buyer holds
In Colombia, foreigners and Colombians face the same rules to buy. The exception is vacant-origin land in border areas. Ownership passes only on registration at the Public Registry. This is from Colombia's investment agency (tier A, July 2025). One law firm adds that foreign money comes in through the exchange market and is declared, or the right to send sale proceeds home may be lost (tier C).
In Ecuador, a Chambers guide for 2026 (tier B) gives foreign buyers national treatment. The exceptions are border and national-security zones, and farmland, which needs prior approval from the agrarian authority. Ownership passes on inscription at the Property Registry.
In the Dominican Republic, a Multilaw guide (tier B, July 2025) says foreigners have the same rights as nationals, personally or through a company. A title registry issues a Certificate of Title that shows the owner and any claims on the property.
What the family reserves
| Country | Part set aside by law | Source |
|---|---|---|
| Colombia | Half the estate goes to descendants, or to parents and grandparents if there are no descendants. The other half is free. The article read does not list the spouse; marital-property rules also apply. This has applied since 1 January 2019. | Civil Code, Senate site (A) |
| Ecuador | With descendants: half is reserved, a quarter is to favour descendants, a quarter is free. A spouse in need has a quarter. One 2026 university thesis gives these shares, and it proposes changing them. | University thesis (B) |
| Dominican Republic | One child: half is reserved. Two: two thirds. Three or more: three quarters. | Law-firm article (C) |
Sources differ on Colombia. A press article (tier U) still describes a three-part split of 50%, 25% and 25%, and includes the spouse. The Civil Code text, as changed in 2018, has the two halves. The Ecuador reading comes from a thesis that itself proposes changing the rules, so a reader may find it differs in places. The Dominican figures are derived from the limits on gifts in Civil Code article 913, as a law firm explains them.
A 2026 column (tier U) says a foreign will that breaks the reserve has no effect on Dominican property, which follows Dominican law.
What heirs pay
| Country | Tax on the heirs | Source |
|---|---|---|
| Colombia | No inheritance tax as such. Heirs pay 15% occasional-gains tax on inheritances, legacies and donations. | Tax-firm summary (B) |
| Ecuador | 0% to 35% on a progressive table, paid by heirs. The first US$76,558 is at 0%. | Secondary site quoting the tax table (U) |
| Dominican Republic | 3% on the net estate. A sworn declaration is due within 90 days of death. Late surcharges run 10% a month, rising to 50%. | Tax office (A) |
On the Dominican Republic, the tax office says an extension of up to 105 days is possible if asked for before day 90. It adds that real estate follows the territory, so a house there is counted there.
When the family sells
Sellers pay too. In Colombia, one law firm says occasional-gains tax is 15% on the gain on a home held two years or more (35% if sold sooner, per one guide), measured from the inflation-adjusted cost, with 1% withheld at closing. In Ecuador, Chambers says the land-value tax is generally 10% of the profit in an asset deal, while a news summary gave 0.5% to 2%, and the rate varies by canton. In the Dominican Republic, a non-resident individual is generally taxed at 27% of the taxable gain. The buyer may owe it jointly if the tax office is not notified within 15 days before the final contract (tier B).
You could
You could ask a local notary what the reserve would mean for your own children. You could also list who counts as a reserved heir in your case, and whether one child would receive the house or a share of its value. And you could compare the tax each heir would pay with the cost of selling.
Have you set up a home in one of these countries for children living elsewhere? What did you learn along the way? Share it here. Someone may benefit from your story.
Figures are estimates for planning, based on public data. Date read: October 2026.
Sources
- Invest in Colombia (ProColombia), real estate chapter, July 2025 (A)
- Código Civil de Colombia, Senado de la República (A)
- DGII, Dominican tax office, succession tax page (A)
- Chambers Real Estate 2026, Ecuador (B)
- PwC Worldwide Tax Summaries, Colombia and Dominican Republic (B)
- Multilaw guide, Dominican Republic, July 2025 (B)
- University of Cuenca thesis, March 2026 (B)
- Nexo Legal, Colombia, 2026 (C)
- Carlos Felipe Law Firm (C)
- El Cronista (U)
- Rio Times, 2026 (U)
- ecuadorlegalonline (U)
- El Inmobiliario column, April 2026 (U)
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