What taxes are paid when buying property in the Dominican Republic

The Dominican Republic offers a relatively favorable tax environment for property buyers with additional benefits available in certain projects

Property Transfer Tax

A 3 percent transfer tax is applied when purchasing a property This tax is calculated based on the government assessed value and is paid during the registration of ownership It is the main cost associated with acquiring a property

Annual Property Tax IPI

The annual property tax known as IPI is 1 percent per year on the value exceeding a non taxable threshold This tax generally applies to higher value properties and investment assets

CONFOTUR Tax Incentives

Many new developments qualify under the CONFOTUR program which provides 0 percent property transfer tax and 0 percent annual IPI tax for a period between 10 and 15 years This significantly reduces costs and increases investment returns

Additional Costs

Additional transaction costs may include legal fees notary services and administrative fees These costs typically range between 1 percent and 2 percent of the property value

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