Closing costs and taxes when you buy in the DR
June 13, 2026
Beyond the purchase price, a foreign buyer in the Dominican Republic should budget for a handful of closing costs. The largest is the 3% transfer tax (impuesto de transferencia), calculated on the higher of the purchase price or the tax authority's appraised value, and paid before the title transfers.
On top of that, legal fees typically run around 1–1.5% of the price, plus smaller registry and document charges. As a rule of thumb, plan for roughly 4–5% of the price in total closing costs. A CONFOTUR-approved project can waive the transfer tax and bring that figure down.
The main yearly tax is the IPI: 1% on the portion of a property's value above an exemption threshold that the tax authority adjusts annually. Qualifying CONFOTUR units can be exempt from the IPI for up to 15 years, and certain primary-residence and age-based reliefs exist.
There is no separate annual 'foreigner' surcharge. Get in touch for a cost estimate tailored to a specific purchase.