What are the total tax obligations and closing costs when buying real estate?

Transparency is key when buying overseas real estate. In the Dominican Republic, standard closing costs and property tax guidelines include:

Upfront Closing Costs (Standard / Non-CONFOTUR):

• 3% Title Transfer Tax: Calculated on the government-appraised value of the property. (Waived under CONFOTUR).
• 1% to 1.5% Legal & Notary Fees: Covers legal due diligence, drafting contracts, and registering titles through your independent real estate attorney.
• ~0.5% Administrative & Miscellaneous Fees: Covers stamps, registry fees, and tax authority processing.

Ongoing Property Taxes (IPI):

• Properties held by individuals are subject to an annual 1% IPI property tax applied only to the total cumulative value of real estate assets that exceeds the national exemption threshold set by the Internal Revenue Directorate (DGII).
• For properties under this exemption threshold, no annual property tax is due. Properties with CONFOTUR certification are exempt regardless of property value.