All real estate transactions in the Dominican Republic are governed by the DGII. Understanding these costs upfront allows you to budget accurately and avoid surprises at closing.
Transfer Tax
3%
Of the property's assessed value
Annual Property Tax (IPI)
1%
On value above RD$9.5M (~US$160K)
Notary Fees
0.25–1%
Of the transaction value
Title Registration
RD$2,000+
Paid to the Registro de TÃtulos
Capital Gains Tax
When selling, a 27% capital gains tax applies to net profit. Many sellers structure transactions through corporations to reduce this liability. Always consult a local tax attorney.
IPI Exemptions
Properties used as the owner's primary residence and valued below the threshold are fully exempt. Newly built properties may also qualify for a 20-year exemption under Law 158-01.
Foreign Ownership
Foreign nationals have the same property rights as Dominican citizens. No restrictions exist on purchasing real estate. Transactions can be made in USD or DOP.