Dominican Republic Property Tax Guide 2026
Property taxation in the Dominican Republic consists of a 3% transfer tax (ITP) on acquisition, an annual property tax (IPI) of 1% on the value exceeding DOP 8.5 million, and various registration and municipal fees. Notably, property valuations are frozen for 10 years after each reassessment, providing long-term predictability.
Transfer Tax (ITP) — 3%
The Impuesto a la Transferencia (ITP) is a one-time tax payable by the buyer upon acquisition of real estate. The rate is 3% of the higher of the purchase price or the official assessed value (avalúo fiscal). This tax is paid at the time of title registration before a public notary (notario público).
- Rate: 3% of the transaction value
- Payable by: The buyer
- Payment time: At the signing of the deed of sale (contrato de compraventa)
- Additional costs: Notary fees (approximately 1-2%), registration fees (approximately 0.5%)
Annual Property Tax (IPI) — 1%
The Impuesto al Patrimonio Inmobiliario (IPI) is an annual property tax levied at 1% on the value of real estate exceeding DOP 8.5 million. The tax is calculated as:
- First DOP 8.5 million: Exempt from IPI
- Value above DOP 8.5 million: Taxed at 1%
- Example: A property valued at DOP 15 million pays IPI on DOP 6.5 million (DOP 15M - DOP 8.5M) = DOP 65,000 per year
The IPI is assessed based on the official valuation (avalúo fiscal) determined by the Dirección General de Catastro Nacional (DGCN).
10-Year Valuation Freeze
One of the most distinctive features of Dominican property tax is that property valuations are frozen for 10 years after each reassessment. This means that once the DGCN completes a reassessment, the official value remains unchanged for a full decade, providing property owners with predictable tax liabilities. The most recent nationwide reassessment cycle began in 2021.
Registration and Notary Fees
In addition to the transfer tax, buyers should budget for:
- Notary fees: 1-2% of the property value for drafting and authenticating the deed
- Title registration: Approximately 0.5% for recording the title with the Registro de Títulos
- Legal fees: Vary by complexity, typically 1-2% of the property value
Unique Properties and Recent Developments
The Dominican Republic offers a variety of real estate options, from beachfront villas in Punta Cana and Cabarete to mountain retreats in Jarabacoa and colonial homes in the Zona Colonial of Santo Domingo. Recent developments include luxury condominiums in the Blue Mall area of Santo Domingo and eco-lodges in Samaná. For foreign buyers, there are no restrictions on owning property (including beachfront) except for properties near national borders (within 20 km of land borders and 10 km of coastline, where at least 70% of the entity must be Dominican-owned). Many buyers structure property ownership through a Dominican corporation (sociedad anónima) to facilitate inheritance and transfer planning.
Disclaimer
This guide provides general information about Dominican Republic property tax for the 2026 tax year. Tax laws may change. Always consult with a qualified Dominican tax or real estate advisor for advice specific to your situation. InvestmentKit does not provide tax advice.