What it costs to close.
Beyond the sticker price, a DR purchase carries transfer tax, legal, notary, and title fees — roughly 5% of value. Under CONFOTUR the transfer tax is waived, cutting that to about 1.5%. Here's the full line-item picture.
- Transfer tax62.2%$8,550
- Legal / attorney20.7%$2,850
- Notary10.4%$1,425
- Title registration4.1%$570
- Title search2.5%$350
Without CONFOTUR
With CONFOTUR
Questions people ask about this
How much does it cost to buy property in the Dominican Republic?
Total buyer closing costs typically range from 3.5% to 5% of the purchase price. This includes the 3% transfer tax (Impuesto de Transferencia), legal fees (~1%), notary fees (~0.5%), and title registration (~0.2%). CONFOTUR-certified properties eliminate the 3% transfer tax, reducing total closing costs to roughly 1.5–2%.
What is the transfer tax (Impuesto de Transferencia) in the DR?
The transfer tax is 3% of the government-assessed property value, paid by the buyer at closing. It is the single largest closing cost. Properties certified under the CONFOTUR tourism incentive program are fully exempt from this tax, saving buyers thousands of dollars.
Do I need a lawyer to buy property in the DR?
Yes, hiring an independent attorney is essential and standard practice. Your lawyer handles due diligence (title search, lien verification, boundary survey), drafts or reviews the Promesa de Venta (purchase agreement), and represents you at closing. Budget approximately 1% of the purchase price for legal fees. Never use the seller's attorney — always hire your own.
What is CONFOTUR and how does it reduce buying costs?
CONFOTUR (Consejo de Fomento Turístico) is a Dominican government incentive program under Law 158-01 that grants tax exemptions to qualifying tourism-related properties. Eligible buyers are exempt from the 3% transfer tax at purchase and the annual 1% IPI property tax for up to 15 years. On a $400,000 property, this can save over $40,000 over the exemption period.
Is the transfer tax based on my purchase price or the assessed value?
The 3% transfer tax is legally assessed on the government-appraised (cadastral) value, which can differ from your agreed purchase price — sometimes lower. This calculator estimates it against your purchase price as a conservative planning figure; your attorney will confirm the assessed value at closing.
Are closing costs different for foreigners vs. Dominican residents?
No. The Dominican Republic grants foreign nationals the same property rights and tax obligations as citizens. The transfer tax, legal fees, notary fees, and registration costs are identical regardless of nationality. The only difference is that DR residents may have an easier time obtaining local financing with lower down payment requirements.
Do I need a deslinde (boundary survey)?
A deslinde is a certified survey confirming exact property boundaries, required for villas, houses, and land parcels (roughly $500). Condos and apartments usually don't need one, since unit boundaries are defined by the condominium plan. Select the property type above and the calculator adds it only when it applies.