Real Estate Transfer Tax
Rate
3%
of the sale price or appraisal value (whichever is higher)
Who Pays
The buyer (generally)
- Paid once at the time of transfer
- Must be paid before registering the property
- Calculated on the higher value between sale price and appraisal
- Paid at the DGII (tax authority)
Exemptions: Properties through a trust (Fideicomiso, Law 189-11), first-time low-cost housing, and transfers by inheritance.
IPI - Real Estate Property Tax (Impuesto al Patrimonio Inmobiliario)
Annual Rate
1%
on the value exceeding the exempt amount
Exempt Amount (2024)
RD$9,860,649
Adjusted annually for inflation
The IPI is an annual tax applied to the total real estate holdings of an individual.
Calculation Example:
| Total property value: | RD$15,000,000 |
| Less: Exempt amount: | - RD$9,860,649 |
| Taxable base: | RD$5,139,351 |
| IPI to pay (1%): | RD$51,394 |
Payment Dates:
First Installment
March 11
Second Installment
September 11
IPI Exemptions: Primary residence with value below the exempt amount, agricultural properties, low-cost housing land, free-zone properties.
Capital Gains Tax
Rate
27%
on the profit obtained
Who Pays
The seller
- Sale of properties by companies or corporations
- Sale of properties that are not the primary residence
- Sale within the first 5 years (habitual activity)
Exemption: The sale of a primary residence by an individual is generally exempt, as long as it is not a habitual activity.
Other Costs and Taxes
Municipal Taxes
Fees for waste collection, public beautification services, etc.
Registration Fees
Title Registry (Registro de Titulos) fees. Varies by jurisdiction.
Notary Fees
Notary fees for legalization and preparation of the sale deed.
Legal Fees
Generally between 1% and 2% of the property value.
Summary of Costs When Buying
| Item | Percentage/Amount | When |
|---|---|---|
| Transfer Tax | 3% | At purchase |
| Legal and Notary Fees | 1% - 2% | At purchase |
| Title Registration | Variable | At purchase |
| IPI (if applicable) | 1% annually | Every year |
Tip
Budget an additional 5% to 8% on top of the purchase price to cover all costs.