Closing Costs in the Dominican Republic, Fully Explained (2026)

Most buyers focus entirely on the sticker price and get surprised at the closing table. In the Dominican Republic, your true all-in cost is the purchase price plus roughly 4–5% in one-time closing costs — sometimes far less if the property qualifies for a CONFOTUR exemption. This guide breaks down every line so there are no surprises.

The 3% transfer tax (Impuesto de Transferencia)

This is the largest single closing cost. The government charges a 3% property-transfer tax to record the sale and issue a new title in your name. One important nuance: the 3% is calculated on the higher of the agreed purchase price or the property's official appraised value as assessed by the tax authority (DGII). On most market-rate transactions the appraised value is at or below the price, but it is worth confirming during due diligence so the number does not surprise you.

The transfer tax is typically paid by the buyer, and it is due at the time the title transfer is filed — not spread out. Budget for it as cash you need available at closing.

Attorney's fees — the most important money you spend

Because the DR does not use title-insurance companies, your attorney performs the role that an escrow company, title insurer, and closing agent would split in the US. Expect fees of roughly 1% to 1.5% of the purchase price, sometimes with a minimum on lower-priced properties. For that fee your attorney should:

• Run a full title search at the Title Registry to confirm clean ownership and no liens.
• Verify boundaries, that property taxes are current, and that there are no encumbrances.
• Draft or review the Promise of Sale and the final Deed of Sale.
• Hold deposits in escrow and manage the closing and the title filing.

Notary and registration costs

The Deed of Sale must be notarized, and Dominican notaries are attorneys who charge for authenticating the document — commonly a fraction of a percent of the price. On top of that, filing the transfer at the Title Registry carries registration fees and stamp duties. Together these usually land somewhere around 0.25% to 1%, depending on the property value and the professionals involved.

Annual costs you should plan for

Closing costs are one-time, but two recurring costs matter for your budget:

• IPI property tax: an annual 1% tax, but only on the portion of a property’s value above the exemption threshold (which is adjusted periodically). Many modestly priced homes fall entirely under the threshold and owe nothing; higher-value properties pay 1% on the excess. Always confirm the current threshold for the year you buy.
• HOA / condo fees: if you buy in a gated community or condo building, monthly maintenance fees fund security, landscaping, pools and amenities. These vary widely — confirm the exact figure before you commit, especially for a rental-investment underwrite.

The CONFOTUR exemption — how to pay much less

If your property is part of a project approved under the CONFOTUR tourism-incentive law, the benefits are significant: the 3% transfer tax can be waived, and the annual IPI property tax can be exempt for a number of years. For a buyer, that can erase the bulk of closing costs and reduce holding costs for years.

The catch is that the exemption attaches to the project, not to you personally — so verifying a development's CONFOTUR status is part of due diligence. We check CONFOTUR eligibility on qualifying listings precisely because it can swing the all-in math so much.

A worked example

Here is what the numbers look like on a US$250,000 condo bought for personal use, paid in cash, on a standard (non-CONFOTUR) transaction:

Now run the same property as part of a CONFOTUR-approved development: the $7,500 transfer tax can disappear, and the annual IPI may be exempt for years — turning an ~4.75% closing cost into something far smaller. That single factor is why two similar-looking condos can have very different true costs.

Who pays what?

As a rule of thumb in the DR: the buyer pays the transfer tax, their own attorney, and the notary/registration costs. The seller typically covers any capital-gains tax owed on their gain and the real-estate agent's commission. These are customary, not absolute — anything can be negotiated and written into the Promise of Sale, which is exactly why that contract matters.

Bottom line

For a standard purchase, budget 4–5% on top of the price and you will be covered. The two levers that change the picture most are CONFOTUR status (which can slash costs) and your choice of attorney (which protects the entire investment). Confirm both early and there are no surprises at the table.