Buying Property in the Dominican Republic: Taxes and Closing Costs (2026)

One of the main costs when buying property is the real estate transfer tax.

Under Law 30-26, this tax has changed:

• 2026: 2%
• 2027: 1%
• From 2028: Eliminated

Depending on the property you’re buying, this may be one of the biggest closing costs.

Read more: Dominican Republic Introduces New Tax Law: Law 30-26

Property owners may also have to pay IPI (Impuesto al Patrimonio Inmobiliario), the annual property tax in the Dominican Republic.

Whether you pay IPI depends on factors such as:

• The taxable value of the property.
• The exemption threshold established by the government.
• Whether the property qualifies for a tax exemption.

Read more: What is IPI?

Many new construction projects qualify for CONFOTUR incentives.

Depending on the project and the applicable legislation, these benefits may include exemptions from:

• Real estate transfer tax.
• Annual Property Tax (IPI).

Not every development qualifies, so always ask the developer whether the project has official CONFOTUR approval.

Read more: What is the CONFOTUR Law?

Most buyers hire a local lawyer to handle the purchase.

A lawyer will usually:

• Review the title.
• Check for debts or liens.
• Prepare the purchase documents.
• Register the transfer.
• Guide you through the closing process.

Legal fees vary depending on the lawyer and the complexity of the transaction, so it’s always a good idea to request a quote in advance. Anything over $1500 USD would be considered expensive. But also not something you would like to cut corners on.

If you’re financing your purchase through a bank, additional costs may apply, including:

• Property appraisal.
• Mortgage registration fees.
• Bank administration fees.
• Insurance requirements.

These costs vary by lender.

• Security.
• Common area maintenance.
• Landscaping.
• Swimming pools.
• Elevators.
• Shared amenities.

Depending on the transaction, you may also encounter:

• Property valuation fees.
• Document translation costs.
• Power of Attorney fees (if buying remotely).
• International bank transfer fees.

Not every purchase includes these costs, but they’re worth keeping in mind when planning your budget. And to ask about them up-front.

Before signing a purchase agreement, it’s a good idea to ask:

• Does this property qualify for CONFOTUR?
• Will I have to pay the transfer tax?
• Does IPI apply to this property?
• Are there monthly HOA fees?
• What are the lawyer’s fees?
• Are there any additional closing costs?

Having these answers upfront can help you avoid unexpected expenses later.

If you’re buying pre-construction, ask the developer about the project’s permits as well. Some projects start selling before all approvals have been issued.

At a minimum, ask whether the project has:

• A valid Construction License (Licencia de Construcción) issued by MIVHED.
• The required municipal approvals, including land use and project approval from the local municipality.
• Any required environmental approvals, if applicable.
• Any additional approvals required for projects in tourism or protected areas. 
  

  If you’re unsure, ask your lawyer to verify that all required permits have been issued before making a significant payment.

If you’d like to learn more, these guides explain each topic in more detail:

• What is the DGII?
• What is IPI?
• What is the CONFOTUR Law?
• Dominican Republic Introduces New Tax Law: Law 30-26