Dominican Republic closing costs (2026): the taxes and fees buyers pay

The costs at a glance

The 3% transfer tax

It's the biggest cost. It's set by Law 288-04, as amended by Law 173-07, and the 2026 tax reform (Law 30-26) didn't change it. The DGII, the Dominican tax agency, applies it to the higher of the contract price and the value in its own table, and adds a RD$20 charge.

The law doesn't say who pays it, but by custom the buyer does, unless the contract says otherwise. It must be paid within six months of signing the sale. Since July 1, 2026, the late charge is 3% for each month, capped at 100% of the tax.

Only some low-cost homes are exempt, with caps far below what nearly any home costs in areas like Punta Cana.

When you pay it on a pre-construction purchase

While the building goes up, what you sign is a promise of sale, which doesn't transfer ownership. The 3% is paid with the final deed of sale, once your unit has its own title, which usually coincides with delivery. The Title Registry won't record the sale without the receipt for this tax.

One detail worth knowing: since the DGII charges on the higher value, if its appraisal at the time of transfer is above the price you agreed years earlier, you pay 3% on the appraisal.

Legal fees

The lawyer who drafts and notarizes the contracts, checks the title and handles the transfer usually charges 1% to 1.5% of the price, depending on complexity, plus ITBIS on the service. The official charges are small: RD$100 per notarial act, RD$50 per notarized contract and RD$20 for the duplicate title, among others. In a typical file they add up to about RD$1,000.

The DGII takes up to three business days for its part, and the Title Registry about 35 business days to issue the title in your name.

If you buy with a mortgage

Recording the mortgage carries its own tax, which Law 30-26 is phasing out: 2% of the loan if recorded in 2026, 1% in 2027 and nothing from 2028. Small mortgages with banks are exempt.

Since the rate depends on the year the mortgage is recorded, a pre-construction purchase delivered in 2028 or later would no longer pay it, unless the law changes. The appraisal and the insurance the bank requires are separate.

What you don't pay: ITBIS

The sale of a home carries no ITBIS, the Dominican sales tax. The DGII confirmed it to a developer in 2024: transferring real estate doesn't trigger the tax. Construction services do carry it, which matters if you hire someone to build a villa on your own land.

The yearly tax: IPI

The real estate property tax (IPI) is 1% a year, but only on the amount above RD$10,695,494 in 2026, adding up all the properties in your name in the country. Dominicans and foreigners pay it the same way, in two installments, in March and September. Many owners of a single condo pay nothing because they don't reach that amount.

If you later rent or sell

• Rentals. If you don't live in the Dominican Republic, the tax is 27% of what you collect, as a single, final payment. If you live there, the withholding is 15% since July 1, 2026.
• Vacation rentals. Residential rent is exempt from ITBIS, but the DGII charges 18% on tourist villas and apartments.
• Selling. Since June 18, 2026, an individual's capital gain is taxed at 10%, as a single payment. The regulation that will say how that gain is calculated hasn't come out yet. Many English-language guides still say 27%, which is the figure from before the reform.

An example with a $150,000 home

Paid in cash, with a DGII appraisal equal to the price:

If you buy with Instadigs, the commission we give back on a project like this, 3% to 6% of the price, is a similar amount. It's credited to your property after the down payment (how the commission works).