2026 at a glance
- Transfer tax: 3%, paid by the buyer at closing.
- Legal fees: commonly around 1–1.5% of the price.
- Typical total closing costs: roughly 4–5% of the purchase price.
- Annual property tax (IPI): 1% of the value above RD$10,695,494 for individuals in 2026.
- When you sell: a flat 10% tax on the gain for individuals under Law 30-26.
What you'll pay when you buy
Property transfer tax: 3%
The biggest closing cost is the Dominican property transfer tax of 3%, paid to the tax authority (DGII) before the title can be registered in your name. It's normally the buyer's cost. The value it's charged on is set under DGII rules and can be based on DGII's own assessment of the property, so don't assume it's always exactly 3% of your contract price. Your attorney will calculate it for your deal.
Properties in approved CONFOTUR tourism projects can be exempt from the transfer tax on qualifying purchases.
Legal and notary fees
Attorney fees for a purchase on the North Coast commonly run around 1–1.5% of the price, sometimes with a minimum fee on smaller deals. This usually covers title and lien checks, reviewing or drafting the Promise of Sale and Deed of Sale, notarization, and handling registration. Get a written quote that spells out exactly what's included.
Registration and other closing costs
Expect smaller amounts for registry fees, certifications, courier and administrative costs. Depending on the property, you may also pay for a survey, an independent inspection, an appraisal, or bank fees if you're financing.
A worked example
Here's what a straightforward US$250,000 resale condo in Sosúa might cost to close. These are illustrative figures only; your attorney will give you the real numbers.
| Item | Basis | Approx. cost |
|---|---|---|
| Transfer tax | 3% of US$250,000 | US$7,500 |
| Legal & notary fees | ~1–1.5% | US$2,500–3,750 |
| Registration, certifications, admin | Varies | US$500–1,000 |
| Inspection (recommended) | Varies | US$300–800 |
| Total on top of price | ~4.3–5.2% | US$10,800–13,050 |
What you'll pay every year
IPI annual property tax
The Impuesto al Patrimonio Inmobiliario (IPI) is the Dominican annual property tax. For individuals in 2026, it's 1% of the amount by which your total taxable Dominican real estate exceeds RD$10,695,494. DGII adjusts that threshold every year.
Two things surprise people. First, the threshold applies to everything you own in the country combined, not to each property separately. Second, many North Coast condos and smaller villas fall below the threshold and owe no IPI at all.
Example: if DGII values your only Dominican property at RD$15,000,000, the taxable portion is RD$4,304,506, and the annual IPI is about RD$43,045. It's paid in two installments, in March and September.
There are exemptions, including rules for owners over 65 with a single residential property and for approved CONFOTUR properties. Your attorney can confirm what applies to you.
Running costs
These aren't taxes, but they belong in your budget:
- HOA or condo fees in gated communities and condo buildings. Ask what they actually cover.
- Electricity, which is expensive here, plus maintenance on inverters, batteries or a generator.
- Property insurance, priced by construction, location and hurricane exposure. Get a real quote before you close.
- Maintenance: pool care, gardening, AC servicing and the effects of salt air and humidity.
- Property management, if you'll rent the property out while you're away.
What you'll pay when you sell: the 2026 change
Law 30-26, in effect since June 2026, replaced the old treatment of real estate gains for individuals with a flat 10% tax on the gain, meaning the sale price minus your adjusted purchase cost, not the full sale price. It's a final tax, paid within six months of the transfer rather than through your annual return.
The law also includes exemptions, for example when proceeds from selling a primary residence are reinvested in another primary residence, and for certain sellers over 65. Some implementation details are still being set out by DGII, so talk to a tax advisor before you sell. If you're a foreign owner, your home country may tax the gain too.
How to keep costs predictable
- Ask your attorney for a written estimate of all closing costs before you sign the Promise of Sale.
- Check that the seller's IPI and HOA fees are fully paid, so you don't inherit their debts.
- If a property is sold as CONFOTUR, ask to see the approval before you count on the savings.
- Budget in the currency you earn, since taxes are assessed in Dominican pesos.
New to buying here? Start with how the buying process works for foreigners.
Frequently asked questions
What is the property transfer tax in the Dominican Republic?
The transfer tax is 3%, normally paid by the buyer before the title is registered. The value it applies to is determined under DGII rules, so your attorney should calculate the exact amount for your purchase.
How much are total closing costs in the Dominican Republic?
Most buyers should budget roughly 4–5% of the purchase price, covering the 3% transfer tax, legal and notary fees, and registration costs.
How much is property tax in the Dominican Republic in 2026?
For individuals, the annual IPI property tax is 1% of the amount by which their total taxable Dominican real estate exceeds RD$10,695,494 in 2026. Many condos and smaller homes fall below the threshold and owe nothing.
Who pays closing costs, the buyer or the seller?
The buyer normally pays the transfer tax and their own legal fees. The seller pays their own attorney and any tax on their gain. Everything is negotiable and should be written into the contract.
Is there capital gains tax when I sell property in the Dominican Republic?
Yes. Since June 2026, Law 30-26 applies a flat 10% final tax to individuals' gains on real estate sales, with some exemptions. Confirm the details with a tax advisor before selling.
This page is general information for buyers, current to the best of our knowledge as of September 2026. It is not legal, tax, immigration or financial advice. Dominican laws, tax thresholds and procedures change, so confirm the details of your own purchase with an independent Dominican attorney and a qualified tax advisor.