Closing Costs When Buying Property in the Dominican Republic (2026)

The asking price is never the full cost of a purchase. This guide lists the costs a buyer pays in the Dominican Republic in 2026, with a worked example and a note on Law 30-26. Last updated: 21 October 2026. Check tax amounts with your lawyer on the day of the transaction.

What are the closing costs in 2026?

If you buy in a CONFOTUR-approved project, the purchase may be exempt from transfer tax. Read our CONFOTUR guide before you count on it.

How is the transfer tax calculated?

The DGII applies 3% to the higher of two values: the price stated in the deed, or the DGII's own valuation of the property. If the DGII values the property above the price you paid, the tax is based on its valuation.

Three rules to remember:

• Deadline. The tax is due within six months of the sale. After that, surcharges and interest apply.
• Currency. It is paid in Dominican pesos.
• Needed for registration. Without this payment, the Registro de Títulos will not register the sale, and the title stays in the seller's name.

Never declare a price below the real one. You risk a tax reassessment. When you resell, you will also pay more capital gains tax, because your official purchase price will be lower.

Worked example: a property bought for US$300,000

Assumptions: the DGII valuation does not exceed the price, and the project is not CONFOTUR-approved.

With a US$150,000 mortgage registered in 2026, the 2% mortgage tax would add US$3,000. If the reduction announced for 2027 is confirmed, it would be 1%, or US$1,500.

These figures are a sample calculation. They do not describe a real property and do not replace a quote from your lawyer.

Law 30-26: what changes and what is still unclear

Box: Law 30-26, still being clarified (as of 21 October 2026)

Law 30-26, enacted in June 2026, reforms several taxes. Here is what the sources we consulted say:

• 3% transfer tax. Several legal analyses say it was neither amended nor repealed. Another source claims the opposite: a cut in 2027 and abolition in 2028. We use 3%, the rate published by the DGII, until there is official clarification.
• 2% tax on "other real estate transactions". According to secondary sources, Article 59 lowers it to 1% in 2027 and abolishes it in 2028. It applies, among other things, to mortgage registration.
• Seller's capital gains. Property sales by individuals would be taxed at 10% of the gain. The draft regulation is open for public comment until 11 November 2026. This mainly affects sellers: see our guide to selling your property.
• CONFOTUR. The law bans combining several tax incentive regimes. Its exact scope is still to be defined.

The DGII has published an implementation calendar for the law. These points are uncertain: have a lawyer confirm them before you decide.

Who pays what, buyer or seller?

Usually, the buyer pays the transfer tax and their own lawyer. The seller settles any unpaid taxes on the property and the tax on their capital gain. The agency commission is set out in writing in the listing agreement: ask who pays it before you make an offer.

The contract can split costs differently. Review that clause with your lawyer before you sign the promise of sale.

What costs come after the purchase?

• IPI (annual property tax). In 2026, an individual pays 1% a year on the value of their properties above RD$10,695,494. The threshold is updated every year. It is paid in two instalments, in March and September.
• HOA fees (cuota de mantenimiento) for a condo or a villa in a gated community. See our condo guide.
• Electricity, water, internet, insurance and upkeep, depending on the property.

How the agency helps

Before you make an offer, Adriana tells you what she knows about the file: title status, CONFOTUR approval and HOA fees. Your lawyer then works out the exact costs. To compare asking prices, see our market page, which is dated and based on our listings.

Questions about a property? Message us on WhatsApp at +1 809 258 6052.

Frequently asked questions

How much should I budget for closing costs in Las Terrenas?

Without an exemption, allow at least 4% to 4.5% of the price: 3% transfer tax and 1% to 1.5% for your lawyer. Add registry, notary and translation costs, and the mortgage tax if you borrow.

Is the transfer tax still 3% in 2026?

Yes, according to the DGII. Law 30-26 created some doubt because one source reports a cut, but most analyses say otherwise. Check the rate with your lawyer on the day of the sale.

Can I declare a lower price to pay less tax?

No. The DGII uses its own valuation if it is higher. Under-declaring exposes you to a reassessment and increases the capital gains tax when you resell.

Who pays the transfer tax?

Usually the buyer. The contract can split it differently: ask your lawyer to review that clause.