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Transaction Cost Tool

Transaction Cost Calculator

Know exactly what you’ll pay before you buy. This calculator gives you an itemized breakdown of every closing cost when purchasing property in the Dominican Republic — transfer tax, legal fees, notary, registration, and more. Toggle CONFOTUR to see how much you can save on qualifying properties.

Using reference rate: 1 USD = 58 DOP
CONFOTUR-certified properties are exempt from the 3% transfer tax and annual IPI property tax for up to 15 years.
Total Closing Costs
$14,450
4.82% of purchase price ($300,000)
Itemized Closing Costs
Transfer tax (3%)$9,000
Legal / attorney fees (1%)$3,000
Notary fees (0.5%)$1,500
Title registration (0.2%)$600
Title search & certification$350
Total closing costs$14,450
Tip: Toggle CONFOTUR above to see how much you could save on a qualifying property. On this $300,000 purchase, CONFOTUR would save you $9,000 on transfer tax alone.

What Each Cost Covers

Understanding every line item in your closing cost breakdown.

Transfer Tax (Impuesto de Transferencia) — 3%

The largest single closing cost. This government tax is 3% of the assessed property value, paid by the buyer at closing to the DGII (Dirección General de Impuestos Internos). It is waived entirely for properties certified under the CONFOTUR program.

Legal / Attorney Fees — ~1%

Your attorney handles due diligence: title search, lien verification, contract drafting, and closing representation. Budget approximately 1% of the purchase price. Always hire an independent attorney — never rely on one provided by the seller or their agent.

Notary Fees — ~0.5%

The notary public (Notario) authenticates and notarizes the deed of sale (Acto de Venta). This is a legal requirement for property transfers in the DR. Cost is approximately 0.5% of the purchase price.

Title Registration — ~0.2%

Registration fee paid to the Registro de Títulos (National Land Registry) to officially transfer the Certificado de Título into your name. This is the final step in legally securing your ownership.

Title Search & Certification — ~$350

A formal search of the property’s title history to verify clean ownership, check for liens or encumbrances, and confirm the seller’s legal right to sell. Your attorney typically coordinates this through the Registro de Títulos.

Deslinde (Boundary Survey) — ~$500

A certified land survey (deslinde) that confirms exact property boundaries. Required for villas, houses, townhouses, and land parcels. Not typically needed for condos or penthouses where unit boundaries are defined by the condominium plan.

CONFOTUR Tax Savings Comparison

See how CONFOTUR certification dramatically reduces your total cost of buying and owning property in the DR.

Without CONFOTUR
$14,450
4.82% of price
With CONFOTUR
$5,450
1.82% of price
Total CONFOTUR Savings Over 15 Years
Transfer tax saved at closing (3%)$9,000
Annual IPI tax saved$1,300/yr
15-year IPI savings$19,500
Total lifetime savings$28,500

Important: Always verify CONFOTUR status before closing. Request the official CONFOTUR resolution number, confirm the resolution date and remaining exemption period, and verify the exemption covers your specific unit. Your attorney should handle this verification as part of due diligence.

Year 1 Ownership Costs

Beyond closing costs, here’s what to budget for your first year of property ownership in the DR.

Monthly Recurring Costs
Property tax (IPI)$108/mo
Insurance$100/mo
HOA / condo fees$250/mo
Maintenance reserve$375/mo
Total monthly$833/mo
Annual Summary
Property tax (IPI)$1,300/yr
Insurance$1,200/yr
HOA / condo fees$3,000/yr
Maintenance reserve$4,500/yr
Total Year 1 recurring$10,000/yr
Total First-Year Investment

Closing costs: $14,450 (one-time)
Year 1 recurring: $10,000
Total Year 1 costs beyond purchase price: $24,450

Frequently Asked Questions

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 IPI property tax and how is it calculated?

The Impuesto al Patrimonio Inmobiliario (IPI) is an annual property tax of 1% on the combined assessed value of all properties owned by an individual that exceeds approximately RD$9.86 million (~$170,000 USD). Properties below this threshold pay nothing. CONFOTUR-certified properties are exempt for up to 15 years.

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.

What are the annual costs of owning property in the DR?

Annual ownership costs include: IPI property tax (1% on assessed value above ~$170K), property insurance (~$1,200/year for a standard condo), HOA or condo fees ($150–$400/month depending on amenities), and maintenance reserves (1.5–2% of property value per year). Total annual carrying costs typically run 3–5% of the property value.

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.

This calculator provides estimates for informational purposes only and does not constitute legal or financial advice. Actual costs vary by property, municipality, attorney, and transaction complexity. The transfer tax is based on the government-assessed value, which may differ from the purchase price. Consult with a licensed Dominican attorney before making purchase decisions. Cost estimates reflect 2024–2025 market benchmarks.

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