Question 1

What does it actually cost to sell property in the Dominican Republic?

Accepted Answer

For most sellers the three biggest line items are the agent commission (typically 5–7% of the final sale price), the seller's attorney fee, and capital gains tax (27% of the profit). Outstanding mortgage balance is settled at closing too. Unlike the buyer side, the seller does not pay the 3% transfer tax — that is the buyer's responsibility under DR law.

Question 2

How is agent commission calculated?

Accepted Answer

Standard real estate commission in the Dominican Republic ranges from 5% to 7% of the final sale price, sometimes split between a listing agent and a buyer's agent. Higher-end properties in Samaná and luxury beachfront sometimes negotiate down to 4–5%, while smaller or harder-to-sell listings can carry 7–8%. The commission is paid at closing from the sale proceeds.

Question 3

How is capital gains tax calculated when I sell?

Accepted Answer

The Dominican Republic taxes capital gains at 27% of the profit, calculated as: final sale price − original purchase price − documented improvements − deductible selling costs (commission, legal fees). The DGII publishes an annual inflation adjustment factor that can further reduce the taxable gain — this calculator uses the simple formula without indexation, so your actual tax may be lower. Always work with a DR accountant before closing.

Question 4

Can I deduct renovations and improvements from the capital gains tax?

Accepted Answer

Yes — documented capital improvements (renovations, additions, kitchen rebuilds, etc.) reduce your taxable gain, and this calculator subtracts the amount you enter. In practice DGII requires notarized invoices and supplier receipts to accept these deductions, and many sellers do not keep them. Only enter improvements you can document; if you cannot, leave the field at zero for a conservative (higher) tax estimate.

Question 5

Are CONFOTUR-certified properties exempt from capital gains?

Accepted Answer

CONFOTUR (Law 158-01) grants broad tax exemptions to certified tourism properties, generally including capital gains tax during the exemption period (typically 15 years). Whether your specific sale qualifies depends on the resolution scope, your role (original buyer vs. resale), and remaining exemption time. Toggle the CONFOTUR option to see the no-tax scenario, but always verify with your attorney before closing.

Question 6

What if I have an outstanding mortgage?

Accepted Answer

Your remaining mortgage balance is paid off directly from the sale proceeds at closing — it does not affect the agent commission, legal fees, or capital gains calculation (those are based on the final sale price). Enter your current payoff balance (principal plus any accrued interest and prepayment penalties) to see the true cash you'll walk away with.

Question 7

Why doesn't the seller pay the 3% transfer tax?

Accepted Answer

In the Dominican Republic, the 3% Impuesto de Transferencia is a buyer-side closing cost paid to DGII upon registering the new title. The seller has no obligation to pay it — the opposite of many other countries. Make sure your sale agreement clearly assigns this cost to the buyer to avoid disputes at closing.

What you actually walk away with.

Standard sale

CONFOTUR-exempt

Download your proceeds statement as a PDF.

Frequently asked questions