Dominican Republic Transfer Tax: the 3% Explained

The Dominican Republic transfer tax is 3% of the property value, and you have six months to pay it. On a condo appraised at US$200,000, that is US$6,000. Below I explain exactly which value the 3% is calculated on, who pays it, what penalties apply if you miss the deadline, and when you are exempt.

How much is the transfer tax in the Dominican Republic?

It is 3% of the property value. This is a one-time tax established by Law 173-07, paid once when you register the property in your name.

Which value is the Dominican Republic transfer tax calculated on?

On the higher of two figures: the price stated in your purchase contract, or the DGII appraisal. This catches many foreign buyers off guard. Even if you negotiated a good price, if the DGII appraises the property higher, the tax is based on the appraisal.

Who pays the transfer tax, buyer or seller?

By market custom in the Dominican Republic the buyer pays it, because the buyer needs the title issued in their name. It is not a legal split, it is common practice, and it can be negotiated in the contract. Get it in writing before you sign.

How long do I have to pay it?

Six months from the signing and notarisation of the purchase contract. After that, late penalties apply: 10% for the first month or part of it, an additional 4% per subsequent month, plus 1.10% monthly compensatory interest.

Is the transfer tax the same as the IPI property tax?

No, and confusing the two is common. The transfer tax is paid once, at purchase. The IPI is an annual tax that only applies when your combined property holdings exceed the current exemption threshold. I cover it in detail in my article on the IPI.

Are any properties exempt from the transfer tax?

Yes. Properties covered by Law 158-01, known as the CONFOTUR Law, are exempt. This is one reason many foreign buyers prioritise developments with this designation. You can read how the CONFOTUR Law works.

How do I pay it at the DGII, step by step?

You file the purchase contract with the DGII Local Administration office covering the property’s location. They verify that the seller is current on their tax obligations and assign an inspector to appraise the property. That appraisal determines the amount due. Once settled, you can process the new Certificate of Title at the Registry of Titles. You can consult the regulations directly at the Dirección General de Impuestos Internos and the Ministry of Finance.

What you would pay in transfer tax on the projects I sell today

The 3% is easier to understand with real numbers. These are three pre-construction projects I have available right now, with the tax calculated on their starting price:

Project	Where and how	From	3% transfer tax
Embassy Gardens	Arroyo Hondo, Santo Domingo, next to the US Embassy. Delivery Dec 2028	US$99,800	US$2,994
Ocean Paradise	Condo-hotel with hotel management. Phase I, end of 2028	US$162,500	US$4,875
Sky Sea	Juan Dolio, oceanfront. Trust with Fiduciaria APAP. Delivery Dec 2029	US$177,500	US$5,325

Three things before you draw conclusions. The figure uses the starting price: pick another unit, or get a higher DGII appraisal, and the 3% rises with it. If the project holds CONFOTUR status, the transfer tax is zero, and you should get that in writing with the resolution number. Add 1% to 1.5% in legal fees on top of the 3%: that is your real closing cost.

I will send you the all-in cost of the unit you like before you reserve.

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