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Guide 02

Taxes and costs one-off and ongoing.

Property purchase costs in the Dominican Republic fall into two groups: one-off transaction costs and recurring annual costs. The rates below apply in 2026.

In brief: you should add approximately 4.25% to the property price in transaction costs, or approximately 1.25% for a project with CONFOTUR certification. Annual costs include property tax, community fees, utilities and insurance.

5 min read 2026 rates Dominican market

Overview

What you pay once and what recurs every year

Purchase costs One-off transaction costs
Property transfer tax ITI, calculated on the higher of the purchase price or the DGII valuation Paid by the buyer when title is transferred
3%
Title transfer costs Notarial services, deed and entry in the title register Paid by the buyer in stages during the transaction
1,25%
Mortgage registration Only when purchasing with bank financing When the loan agreement is signed
2%
Recommended budget approx. 4.25% of the price
Recurring costs Property ownership costs
Property tax (IPI) Only on the value above the threshold of approximately USD 182,000 (RD$10.7 million) Two instalments a year: 11 March and 11 September
1%
Community fees Pool, common areas, security and sometimes water Monthly, paid to the property manager
2,5-4 USD/m²
Utilities Electricity and internet around USD 60, with the remainder based on usage Monthly
from USD 60
Property insurance Policy covering the apartment and its contents Annually
approx. USD 500
Rental management Management company commission calculated on rental income. We describe the management models in Guide 03 Deducted from income, usually monthly
15-30%
IPI due dates 11 March and 11 September

Glossary

What these abbreviations mean

Dominican documents and contracts use Spanish abbreviations. Below is a brief explanation of each one; you will see the same terms in developer statements and legal documents.

ITI Impuesto de Transferencia Inmobiliaria
A one-off property transfer tax of 3%, calculated on the higher of the transaction price or the official valuation. It is paid when title is transferred.
IPI Impuesto al Patrimonio Inmobiliario
An annual property tax of 1%, calculated only on the value above the exemption threshold. It is paid in two instalments, on 11 March and 11 September.
DGII Dirección General de Impuestos Internos
The Dominican tax authority. It maintains the property valuation register, and taxes are based on this valuation when it exceeds the contract price.
CONFOTUR Tourism Development Act 158-01
A certificate granted to investments in tourism development areas. It exempts the buyer from ITI and annual IPI for up to 15 years.
ITBIS Impuesto sobre Transferencia de Bienes
The Dominican equivalent of VAT, at 18%. It does not apply to the property itself, but to transaction-related services such as legal support, notarial services and rental management.
ISR Impuesto sobre la Renta
Income tax. It applies to rental income and, when a property is sold, to capital gains at a rate of 27%.
HOA Community management fee
A monthly contribution for maintaining common areas, including security, pool, landscaping and cleaning. It is calculated per square metre or per unit.
RD$ Dominican peso
The national currency. Tax thresholds are stated in pesos, while prices in property developments are usually quoted in US dollars.

Example

Cost calculator

USD

Enter your own price and the amounts on the right will update immediately. The example assumes an apartment in a development purchased without a loan. The official DGII valuation may differ from the transaction price, so treat the result as an estimate. Optional fees for an independent lawyer are not included.

3% transfer tax (ITI) based on the price or DGII valuation
7 500 USD
Title transfer costs assumed at 1.25%
3 125 USD
Annual property tax (IPI) 1% of the amount above the threshold
680 USD / rok
Total transaction costs 10 625 USD 4.25% of the property price

Jak działa próg IPI: podatek liczy się tylko od kwoty powyżej progu 182 000 USD. Dla nieruchomości za 250 000 USD podstawą jest 68 000 USD, a 1% z tego daje 680 USD rocznie.

The biggest saving

CONFOTUR can eliminate the two largest costs

Projects with CONFOTUR certification, granted to investments in tourism development areas, are exempt from the 3% property transfer tax and annual IPI for up to 15 years from the certification date.

The exemption applies equally to Dominican and international buyers. The project status, not the buyer’s nationality, is what matters. We always verify the status in the developer’s documents before reservation.

3% ITI tax on transfer of title
0%
Annual IPI exemption for up to 15 years
0%
Transaction costs instead of approximately 4.25%
1,25%
On sale 27%

Capital gains tax calculated on the difference between the sale price and the indexed purchase price.

IPI return once a year

Even when exempt, it is important to keep up with DGII obligations, usually handled by a local lawyer or accountant.

International buyers no surcharge

Foreign buyers pay the same rates as Dominican citizens. There is no additional tax for international purchasers.

Rates and thresholds are current for 2026 (IPI exemption threshold: RD$10,695,494, approximately USD 182,000, indexed annually). This material is for information only; final amounts are confirmed by the lawyer handling the transaction.

Read more

More guides

The property purchase process, step by step 01 4 min Read The property purchase process, step by step Seven stages from consultation to property handover. Read guide Short-term rentals 03 4 min Read Short-term rentals Management models, seasonality and realistic occupancy. Read guide Residency and stays 04 5 min Read Residency and stays Legalising your stay as a property owner. Read guide
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We will calculate the costs for a specific property

We will verify the project’s CONFOTUR status and prepare a complete breakdown of purchase and ownership costs.

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