Transfer tax — about 3%
The main one-time cost is the real estate transfer tax (Impuesto de Transferencia Inmobiliaria), currently 3% of the property value. Importantly, the tax is calculated on the value the DGII assigns after its own appraisal, which may differ from the price on the contract. This must be paid before the property can be registered in your name.
Legal and closing fees — about 1–1.5%
Attorney fees for handling due diligence, contracts, and registration typically run around 1% to 1.5% of the purchase price, sometimes with a minimum for smaller transactions. There are also smaller costs for notary services, document certifications, and registry filing.
Engaging an independent attorney is not a place to cut corners — it is the protection that makes the other costs worthwhile. See our step-by-step buying guide for where the attorney fits into the process.
Annual property tax (IPI) — about 1%
Individuals may owe an annual property tax called IPI, generally 1% per year on value above an exemption threshold that is adjusted annually. Owner-occupied homes below the threshold are often exempt, but the rules treat unbuilt lots, multiple properties, and corporate ownership differently. Because land held for investment can be treated differently from a primary residence, confirm your specific exposure with your attorney.
Other costs to keep in mind
If you hold title through a Dominican company, factor in incorporation and annual corporate fees. For development, budget separately for surveys, permits, and infrastructure. And if you finance the purchase, expect additional bank and mortgage-registration costs.
One cost you can avoid entirely is the hidden expense of buying problem land. Untitled or non-deslindado parcels can cost far more in legal fees and lost time than any tax — which is why we only deal in verified, titled land. Read more in our guide to deslindado and titled land.
Budgeting example
As a rough rule of thumb, on a titled parcel you might budget around 4–5% of the purchase price in one-time closing costs (3% transfer tax plus legal and registration fees), then plan for the annual IPI where it applies. Our team can give you a precise estimate for any parcel on our listings — get in touch.
Frequently asked questions
How much are total closing costs when buying land in the DR?
Budget roughly 4–5% of the purchase price in one-time closing costs: about 3% transfer tax plus roughly 1–1.5% in legal and registration fees.
Is the 3% transfer tax based on the sale price?
Not exactly. The DGII calculates the tax on the value it assigns after its own appraisal, which can differ from the price stated on the contract.
Do I pay annual property tax (IPI) on land?
You may. IPI is generally 1% per year on value above an annually adjusted exemption threshold. Unbuilt lots, multiple properties, and corporate ownership are treated differently, so confirm your exposure with your attorney.
This guide is general information for educational purposes and is not legal or tax advice. Confirm current figures and requirements with your attorney and the DGII.
